Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Thanks levistubbs, i find it a bit frightening how little effort some people appear to make before spending big chunks of their hard earned £'s. We're not Shell or BP, there's not that much to research.
Fan of UOG and the foundations are now well and truly set for moving up the ladder (as BL would say) over the next year or so, but as all LTH's know, it'll be a slow burner
Have you sent in any Q's for thursday?
Well if someone with 1 post and typing in capitals tells me its going to multibag i should really take note.
I won't provide 'counter arguments' to your figures as your research seems to consist of just plucking a couple of bits of info from the last RNS to concoct your post. A number of LTH's (including me) have taken the time to forecast a realistic P&L - including all the factors you've ignored - over many weeks/months and many have been posted on this board.
I'll give you some areas to research and you may want to revisit your expectations - all info is easily found
1. 2019 production levels - boepd covered in multiple RNS', interviews and the RKH Egypt 2019 P&L is contained within the UOG annual report in the notes
2. Oil revenue - some is hedged at $60pb, for the remainder there is a pricing formula... easily found
3. Forecast production is 2,500boepd not bopd. The figure contains gas. Pricing and volumes easily found
4. You'll want to read up on the Production Sharing Contract (PSC), it'll dampen your numbers significantly
5. There are additional costs to the $6.50 cash costs. Add depreciation, office costs and loan interest
Not disputing the SP has plenty of room to grow (otherwise i wouldn't be invested) - but your $30m profit figure is a mile out.
Chris - No worries. Was on the Chat homepage and noticed you'd asked the same question again on UPL, so guessed you'd missed it.. It seems plausible that Equinor threw their hat into the ring for both P2478/9 blocks last year and missed out to Corallian on P2478
FYI, raised a couple of clarification questions with RBD about the acquisition of Humbers stake in PEDL183.
Had this response via Camarco.
Q1.
How does the deal for £1.4m + 350m shares cover Humber O&G’s sunk costs on the WN-A2 well and for the preparation work and down payments made to contractors, equipment manufacturers etc for the WN-B1 well?
- Are Reabold liable to reimburse Humber O&G any costs for WN-A2 (drill or upcoming testing) or WN-B1 incurred in addition to the cash/shares within yesterday’s deal?
A. There is no burden on Reabold to cover any sunk costs as paid for by Humber previously, other than minor adjustments to take into account any expenditures between the effective date of the transaction and the closing date of the transaction. Going forward, Reabold will be responsible for 16.7% of license expenditures.
Q2. (which they answer with their final comment in Q1)
Is the split of drill/testing costs on the WNB wells the same as WN-A2? – ie. Is it 50% Rathlin (paid for within Reabold’s investment last autumn), 25% Reabold (for Humber O&G’s 16.67% working interest), 25% Union Jack (16.67% working interest)?
A . There is no promote associated with WNB, so all costs are covered by the JV partners in line with their working interests.
As part of Q1, I did ask if they could give an estimated % of the drill/test costs for WN-B1 still outstanding for Humber's former stake going forwards but they didn’t answer.
Chris – Noticed your post on another board re P2478. Possibly Equinor (?) – they were awarded the blocks to the East in P2479 when Corallian and partners were awarded P2478 last year.
Brian on Vox..
https://audioboom.com/posts/7600064-united-oil-gas-xpediator-gaming-realms-russ-mould-on-property
GingerHippo - looks much more like it.
FYI/fwiw, I'm currently modelling at c.£5m/$6m profit based on $40/bl - the only diff to you Is that as c.300boepd is gas and the economics not as good so i've factored that into the revenue to bring it down a bit.
levistubbs - I do get you. i read it as just the one for the year in total - "Deferral of Egyptian Capex reduces 2020 infill campaign from 4 wells to 1 well, significantly reducing gross 2020 Capex estimates. Further optimisation of the Capex and Opex budgets is being considered". Given yesterdays good news and if the oil price behaves they can reinstate part of the programme?
trytryandagain - $60 is a for a fixed number of barrels, so anything else will be at the market price. Agree that the additional and unexpected $'s from El-Salmiya, combined with an improving oil price, might lead to them revising their plans
trytryandagain - There aren't any further drills planned now in Egypt until the oil price moves north. If you read BL's comment in the RNS yesterday, he states "a deferred drilling programme ready to be re-instated should market conditions improve"... so possibly another in H2 if oil keeps moving on its current trend?
Gingerhippo - No worries. Heres the link - Pages 6/7
https://www.uogplc.com/wp-content/uploads/2019/12/United-Oil-Gas-Acquisition-of-Rockhopper-Egypt-10-Dec-2019.pdf
levistubbs - thanks mate, I noticed you trying to inject some reality yesterday - I gave up and thought id come back when the froth had died down!. The predictions of margin and mcap seemed to get more nuts as the afternoon wore on
Gingerhippo - You are misinterpreting the RNS somewhat. The flowrate of 8700boepd is the initial rate for the well and it wont be producing at that rate as per the RNS . UOG have a 22% stake in Abu Sennan and the flow rate is forecast to be capped at c.600boepd net to UOG when on production taking total production up to c.2500boepd
The 57% deduction for the PSC is from gross revenue - so calculate gross revenue, x by 43% and then deduct the $6.50pb and the other admin costs to give you a profit figure.
FYI - Italy next year should be c. $2mpa of margin
Bradleybear - V true and not disputing the SP should be north of where we are. At $35pb they make a decent profit and cash to pay off the loan instalments, El-Samiya drill costs etc and have a good chunk left over for the 2021 drill programme. Looking way healthier than it was looking a couple of months ago when oil was <$20