Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
WALTON MORANT LICENSE: JAMAICA
SUMMARY
• United Oil & Gas owns 100% interest in the 5.5 million acre Walton Morant License, offshore Jamaica. The License runs to January 2026 and United is planning the final work program that is estimated to cost $3 million. Since 2014. ~$40 million has been spent on technical data and studies, including 3-D seismic, on the License for which Gaffney Cline & Associates certifies 2.4 billion bbls of recoverable oil in 11 leads. United has identified an additional 4.8 billion bbls of additional targets.
• In exchange for funding this final $3 million work program and a contribution towards United's costs of $5.5 million, a partner can earn a material equity interest in the License. This final program includes acquiring seabed piston cores to unequivocally prove the existence of migrated hydrocarbons in the offshore basins plus seismic reprocessing for more accurate imaging including direct mapping of source rocks.
• Prior work demonstrates Jamaica's favourable position in relation to the presence of a regionally significant organic-rich Upper Cretaceous Caribbean source rock depositional fairway. Jamaica parallels active exploration in the Caribbean region in Honduras and Hispaniola and taps the proven regional Upper Cretaceous source driving Trinidad & Tobago.
• Upon conclusion of the work program, the plan is to drill an initial test well to target a 400 million bbl of recoverable oil prospect at a cost of 530 million. Success on this standalone prospect at the volumes targeted would yield NPV10 of $3.9 billion assuming 580 oil. Additionally, it would unlock a multi-billion barrel basin.
“The Company believes that its commercial position remains unchanged between a default scenario out of the Abu Sennan concession and the commercial terms of the SPA (if completed), as the proposed cash consideration from a sale would be used to settle outstanding cash calls with the Operator and either of scenarios would involve the divestment of the Abu Sennan concession”
People on LSE who don’t hold share, who clearly didn’t join the share holders call or be vocal and question the ceo should advise because WHY?!!?
Maybe because they had said that they bought UOG shares @3p and have been wrong about a fund raiser on several occasions.
I wonder what agendas have (one just need to look at their posts history)
* The Company has a receivables balance of USD $0.80m outstanding from EGPC and cash in the bank of approximately USD $1.3 million.
* BP debt $1.089m to be cleared
* They’re raising another final invoice of around $0.70m still outstanding/due from EGPC
* They’re no longer liable for costs due to the default notice
* Based on the above and as stated, we should have around 12 month cash runway plus the possibility of re-financing other plays using BP loans/facility as we will be paying off the existing loan
Saudi will add huge value to the company (imo) after costs it should be worth many times the current KEFI MCAP!
Very solid/credible local partner, will be quick and easy funding available. We now just need the FULL TK bank sign off and the rerate will begin (imo).
BlaimThrower - If you’re genuinely asking me do I still believe in Brian from these calls and updates then my honest answer would be trust/believe in a person is earned and he now needs to walk the talk. Brian needs to start turning around perception and with any good Jamaica processes along with other deals using BP relationships as they’re fully supportive of the UOG team is possible (imho). I think the MCAP here is ludicrous and the risk v reward are good based on Jamaica.
In my opinion the Jamaican Ministry wouldn’t have agreed another two years extension if they didn’t see the details/information of the super major that pulled out at the 11th hour and details of other interested parties including other super major.
Do I feel this can turnaround very quickly (totally). Would I buy more (Yes, based on the current share price as the potential that exists with Jamaica is massive). For me I am massively underwater here but I will NEVER lose hope and my feelings is things will turn around soon.
VistaMan, I will try to give a brief summary from today’s shareholders call.
* It wasn't a cash call it was a notice of default which was served when the operator (and buyer) amended the terms of the contract at the last minute and wanted to change the closing mechanism and the way
UOG signed over title (which they cannot do due to UK and Egyptian law plus BP debt security).
* With the default they are not liable for payments vs the asset and can keep receivables until the default date which should leave them in a better position.
* They worked with BP all the way, from the start (early stage hence BP repayment was stopped as they were selling the asset). BP are very supportive, they are in progress on closing the BP debt (they have few months leeway to repay the $1.08M stated on the RNS today).
* BP are supportive of UOG using future facilities to buy production and this is a big part of their forward strategy
* No directors have sold any shares (they can’t without notifying the market)
* He said it's time to go back to doing what they did best 3/4 years ago (lots of deals)
* We should have around $1m cash, after BP debt repaid (cash in bank and debt free). He said we all will be happy in 6m that Egypt is gone due to all the issues and fx costs to get funds out.
* He is still super confident with Jamaica and mentioned we still have other super majors interested subject to 2y extension hence he worked hard with Jamaican government who are supporting UOG and working fast to process paperwork etc….
* I am not happy about Egypt and I was wrong as I thought it was worth significantly more (I could see from previous RNS they we’re trying to sell Egypt as I mentioned here before) The fact that he stated today the 2024 budget and plans from Kuwait suggest we will be making a loss this year I agree we’re better off to leave Egypt as I simply cannot see how UOG can afford these costs without equity rise or new BP facility
United Oil & Gas is inviting you to a scheduled Zoom meeting (any genuine Holders want to join need to email Brian asking for link). I would happily share here but this board is full of ******* who wanted to see UOG fail and to be honest I wasn’t expecting to see the news we did from Egypt today and feel Brian has been hiding some truth or market sensitive info from us.
* £1m drawn against the short-term finance (SA burn rate zero currently and £200k pm for TK)
* £52m pa to KEFI from TK alone @$1800 GOLD
* Artar paid Kefi's costs of £3.5m for 2023 and that the percentage share Kefi owns has now dropped from 27% to 25% (£3.5m for 2%)
In parallel with the social engagement programme, we are preparing detailed definitive documentation for signing between the Project syndicate financiers. Full Project launch, including funding drawdown, is on course for H1 2024!
Kefi has government support therefore banks this size will not go back and change their mind (imo) Great news and well done all long term holders!
Great initial flow rates/results!
So coffeecups you only go back to Sep and not anything afterward (keep on investing that way!)
* EGPC has continued to make regular payments to the Company against the receivable balance, including Egyptian pound payments equivalent to $1.8m since the 31 October!
* The company has had over the last 3 years, trouble getting $ from the country and faces increased costs fx fees etc getting the $ out (it clearly states on previous RNS “previously announced’’ so again just look at how they have managed this without any fund raising and also reducing DEBT for the last 4y).
Kefi Investor Q&A page,
Q: What happened at the workshops in Ethiopia for the Tulu Kapi syndicate? And what happened to the approvals by the lead financiers?
A: The stakeholder meetings ended 7 December with all objectives achieved. Notable were the public commitments made by the government through the Prime Minister, as regards intensifying preparations of the community for safe resettlement.
In response to this Government confirmation, the lead financiers immediately submitted their internal requests for their respective committee approvals. We are well informed of excellent progress but can only formally confirm outcomes in an RNS when we receive formal confirmations to do so from these financiers, all of whom are multi-billion dollar companies with strict protocols.
Posted 19 December 2023
There is risk with everything in LIFE! People on LSE chat have admitted to buying UOG @3p (not me) obviously they had seen a value with UOG when the company was trading over £15m MCAP. Maybe they will get another chance again who knows (only time will tell).
* EGPC has continued to make regular payments to the Company against the receivable balance, including Egyptian pound payments equivalent to $1.8m since the 31 October!
* It has had over the last 3 years had trouble getting $ from the country and faces increased costs fx fees etc getting the $ out (it clearly states as previously announced, so again just look at how they have managed this without any fund raising and also reducing DEBT).
It’s not for everyone and if anyone has shares to sell, they can but for posters to keep posting End of company and fundraising incoming need maybe look at other oilers who are surviving only from capital rise and huge debt (lots to choose from and I wish you all the best with your investments).
With just over £4m MCAP currently it wouldn't take a genius to work out its potential with a 5-10-15or20% free carry on Jamaican WHAT the risk / reward ARE!!!
* BP Acquisition facility to be fully repaid Jan/Feb 2024 and NO equity rise for the past 4 years (and we have posters here saying it’s the END of UOG lol…..)
Jamaica extension is the key now and I want to see Brian turn the corner or hold himself accountable (I still think he is the best to get the extension on Jamaica, however long run would like to see him being hold accountable and take responsibility for his failure).
Egypt Update:
The Group's working interest production averaged 1024 boepd (946 bopd oil and 78 boepd gas) for the year to 5 November 2023, which is in line with full-year 2023 production guidance of between 930 and 1,030 boepd, which remains unchanged. The full-year guidance includes production from the current wells and contributions from workover activity currently being undertaken on the fields.
Kuwait Energy Egypt, ("Kec") as the operator of the Abu Sennan licence, has notified the Joint Venture partners that drilling of the ASD S-1X well is expected to commence over the coming days, using the ECDC-6 rig. This exploration well is the final well of the 2023 drilling campaign and is targeting an un-risked STOIIP estimated by United at c. 10 mmbbls gross across multiple reservoirs intervals, including the primary Abu Roash-C and Abu Roash-E intervals. The ASD S Prospect has been de-risked by the ASD Field, located ca. 2km to the north, which currently produces oil from the same primary reservoirs that are targeted in the well. The well is expected to take ca. 40 days to drill and log, and if positive indicators for the presence of moveable hydrocarbons are seen, the well will be completed and tested.
This was just posted by: Sasha (Admin on UOG Telegram).
“I have spoken to Brian and he’s had Covid (first time so bad he says). He does want to do a call at some point, he is preparing for a trip to Jamaica leaving this week, he’s got a lot on and says it’s very difficult to talk about it and just wants to secure Jamaica first. Securing the extension is key and the interested parties are very much there, he complet focused on that and has a very good relationship in country. The other party which pulled at 11th hour was a supermajor and it was unfortunately due to a top down strategy change.
I discussed Egypt and the ASD1X well is drilled now and has been for a couple of weeks. It’s was a 40 day well and was announced on Nov 9th. It’s currently funded from Egypt. Results possibly over Christmas period (given it’s in drilling can’t he talk about that much more).
Have discussed PR and Brian acknowledged that it hasn’t been good enough at all and will taking this back under his wing in the new year and away from the CFO function. I agreed with this and not a role for accountants.
It’s about Jamaica and he says remains confident of extension and the interest from other parties is very real”