Things seem to be looking up here. On the bright side we know SS fixed the water problem with HH2z which much higher paid CEOs such as Hurricanes Energy has failed to do. Ukog have next to no debt, unlike Hurricane Energy that is strapped with over £200 millions worth and unlikely to be able to repay it now it has had to shut one of its two wells, and their MCap is down over a £billion to about half their debt level. UK costs onshore only a fraction of Hurricane offshore running costs and SS is near to getting production down to $12 per barrel.
The trolls said that as financial and share experts it was impossible for the SP to rise here due to the number of shares, but it has again. The trolls said it was impossible for the SP to rise as it must only go down rapidly because of "death spiral" financing, but it has gone UP.The
What will the self appointed expert trolls be telling us next? Is it, the SP can not go UP as SS has not bought shares during the closed period.
Up, once the present unprecedented situation with the coronavirus pandemic is over.
Up, when the oil price recovers (as is forecast).
Up, when the HH1 Kimmeridge reservoir is brought into dual production to add to the present 300 bopd average production from the HH1 Portland reservoir.
Up, when the present HH2z EWT is completed and it's oil flow is added to HH1 Portland and Kimmeridge reservoir flows.
According to Hurricane RNS the full cost of their production etc. is $41 per barrel, and that was based on around 18,000 bopd. Cost per barrel will be much more now.
So they must be running at a major deficit per barrel due to their CEO's and other directors very high salaries, and substantial overheads associated with offshore oil production.
Reinjecting produced water will be another added cost.
Fortunately SS sorted out Ukog water problem very swiftly in the circumstances and at a relatively low cost.
The Hurricane problems with their well, now to be shut in but that may be an ease in to an abandonment RNS in the next few months, including the water ingress they were unable to fix shows how difficult, high cost and high risk offshore oil wells are compared to onshore.
In comparison SS was able to plan, organise and rectify the water ingress problem with Ukog's HH2z relatively quickly and economically. Unfortunately the delay and uncertainty combined with the organised endless panic creating deramping by trolls caused an excessive SP fall.
How disappointed those trolls were when the successful rectification, that those very same trolls in their self declared positions as experts said was impossible, was announced and those multiple tankers began transporting HH2z oil to the refinery.
So the trolls moved to their next on going ploy of how many share there are and consolidation. We would all prefer less but Ukog even now has almost half the number of shares that UJO has (and that has risen substantially recently). No call for consolidation there even though their present SP is only about half that of Ukog's. Unlike UJO we have an average output of 300bopd from HH1 Portland reservoir alone, and more oil produced from the other Ukog oilfield at Horndean. The further HH1 Kimmeridge reservoir to be brought into production soon as well, plus HH2z production to be added after the EWT is completed.
SS salary, only a fraction of that paid to Hurricane CEO, and Hurricane CEO has created a huge debt of over £200million that they may not be able to repay and due only next year. SS has not burdened Ukog with massive debts.
The trolls have constantly tried to undermine Ukog share price by pointing out that SS does not have shares but Hurricane CEO and other directors have many shares, many will recall also that Angus Energy directors did also, but it has made no difference to the problems both of those companies are suffering or prevented their SPs falling very significantly.
The fall in oil prices, dramatically worsened by the pandemic, all beyond the control of all companies has reduced Ukog SP further but soon these unprecedented circumstances will change.
That should lead to dramatic and rapid increases in UKOG SP in the near future.
Penguins, you seemed to have missed that there is production and test production. The 300 bopd stated production, it did not say "including test production" or "including EWT production" just production which is stated as "commenced from the Portland via HH-1... ".
We know that HH-1 has been intermittent for various reasons. We have not been told of HH2z testing programme so do not know. We also do not know how many tankers have not been seen or reported. Those seen give us the minimum number there could have been. So no reliable information to judge HH2z flow, but production is stated as 300bopd which seems always to be a referral to HH1 only as Hh2z is always SET of test production.
"31/03:- ‘Production has now commenced from the Portland oil pool via Horse Hill-1 (HH-1)"
‘HH-1 in stable oil production, HH-2z EWT ongoing’
‘Consequently, with daily flow rates from production start at Horse Hill averaging over 300 barrels of dry oil per day ("bopd")’
'HH-2z EWT ongoing'
Production always refers to HH-1.
HH2z always referred to as EWT.
The average production of over 300bopd is the figure for only the HH-1 Portland reservoir.
According to the recent repeated claims of derampers and trolls on this board the SP was in a "death spiral" and it would be impossible for the Ukog SP to ever rise.
Then last week the impossible happenef. The SP increased by nearly 12% over the four trading days.
Today the impossible happened again, the SP again rose by another 4%.
16% increase over five trading days.
How could those deramping trolls have been so wrong.
Expect there to be more false claims from the trolls in an attempt to manipulate the SP down to please the vindictive pizza man, and avoid having further ear bashings for their failure.
SP UP 2.04%, according to the expert derampers that just should not happen.
Brent Crude just crossed above $31.08 the expert derampers were claiming only recently prices would remain below $20 until next year.
Two tankers from HH. Should not happen according to derampers as they and the pizza man boss said not even an egg cup of oil at HH.
Bwm, so the 460 million shares have already been sold by WH Ireland and the new holders, as declared in the holding RNS, are Cannacord. Who may sell the shares on at some future date. Could be in a few days, weeks, months years. Nobody knows for sure. But they have been paid for to WH Ireland.
178 million unaccounted for but probably already sold as well.
Bwm, the placee was WH Ireland according to the RNS. Some placing agent.
Anyone taking shares from WH Ireland must pay them a minimum of 0.2p per share. So those 460 million shares need to be sold on significantly above that minimum price.