“Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition."
Seadoc had claimed there would be a placing at the same time as the accounts were released in June 2019, as there was absolutely no cash left and that extra money was needed by Ukog immediately "just to keep the lights on". There was of course no placing in June, or even in July.
Then in August Ukog RNS stated it held, and had already ringfenced the full amount of the CASH it required for the full 85.635% of the costs of HH2/2z :
" It should be noted that the cash consideration will not impact UKOG's ability to fund the forthcoming Horse Hill 2/2z drilling and extended testing campaign, as cash funds for its full 85.635% share were set aside and ringfenced internally in Spring of this year."
"The funding of UKOG's increased 85.635% share of the new HH-2/2z horizontal drilling and testing campaign, scheduled to commence later this year following transaction completion, will not be impacted by this acquisition, as existing cash funds were set aside and ringfenced for this purpose in Spring 2019."
Seasoc had also falsely claimed in June 2019 that all the £3.5m raised in the March 2019 placing had also already all been spent "just to keep the lights on" but yet again the official Ukog August 2019 RNS proves him wrong:
"To fund this acquisition, UKOG will primarily use cash from the £3.5 million placing raised in March 2019,...."
SP in the Blue. HH Horizontal Portland Well drill making good progress. Kimmeridge Reservoir producing oil at HH. Horndean asset producing approx 4,500 barrels of oil per month. Tankers at HH. Cash from oil sales. Looking good at present.
It was Schlumberger, the world's largest oilfield services company employing over 100,000 people in 85 countries, that produced the report that stated 124 billion barrels OIP in the Weald (11 billion OIP in HH licence area).
That was after Nutech, another world renowned oil field reservoir specialist company that has analysed 100,000 wells for more than 500 clients in every major oil play in the world, had compiled a report stating 100 billion barrels in the Weald.
So SS had not plucked the figure of 124 billion OIP in the Weald and HH from the air. It was the stated findings of real experts, not an enthusiastic amateur or a numerically challenged dodgy accountant.