RE: Perforation14 Dec 2018 03:39
DHC - My earlier post was perfectly clear as long as you reposted the entire post. But I note you failed to post the 2nd paragraph which made your whole argument redundant.
I’ll repost what I actually wrote and not what you selectively chose. This can be found at the bottom of this post.
But I shall highlight my 2nd paragraph which is self explanatory.
“1 year of production of BRX4Z will pay for the entire Brockham development. The money leaves one pocket and goes back into the other pocket. Thats another big plus factor for choosing Angus when comparing Angus and UKOG for investor money.”
So yes Angus has £11million to put towards their costs of the field infrastructure. It’s like having a pension pot and every £1 you put in the company matches, but instead every £1 of production is matched by the Tax man. That is a great piece of business and something that is mostly overlooked by investors.
Brockham is the Weald’s FIRST Commercial Production test and all those barrels / tankers of oil leaving the site means another piece of the entire 6 well Field Development Plan is paid for at NO added expense to Angus. I’m sure other oil companies in the Weald would love a credit line like Angus.
I’m not sure why you are highlighting the 65% as all the sums calculated and posted by various posters have taken this into account…sigh.
I note your colours are nailed to the UKOG mast and only appear on this board to create doubt where there isn't. I wish you all the best with your UKOG investment.
And here is my original posts, unedited:
“What folk may not appreciate about the incurred indefinitely available tax losses of circa £11 million to carry forward against future taxable income of the subsidiaries is that this additional pot of cash through tax savings will pay for all the wells / sidetracks to be drilled at Brockham, the entire development.
1 year of production of BRX4Z will pay for the entire Brockham development. The money leaves one pocket and goes back into the other pocket. Thats another big plus factor for choosing Angus when comparing Angus and UKOG for investor money.
Angus have 3 wells to surface out of a possible 6. Yes you can use the existing well subsurface infrastructure to drill sidetracks and turn them in to Kimmeridge producers.
The best well to sidetrack would be the BRX3 well, which BP originally drilled and has now become a water injector. Whether they drill out of 9 5/8" casing, drill 8 1/2" hole, run 7" liner before drilling the Kimmeridge with a 6" hole before running liner and complete.
BRX3Z and BRX2X would take approximately 14 days each to drill. Angus only pay 65% of the well costs. So it wont be a costly outlay.
Angus will perform the BRX4Z EWT and from those results plan the best location for the sidetrack wells.”
Sign In
Follow the stocks
