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Good question bladehater. It also conflicts with the latest Company presentation and the info in the October £24m placing circular
Current production rate(1) 300 boe/d (150 boe/d net) *
*based on production from 1 Sept to 15 Sept
Bit of a puzzle
Delboi - Yes indeed. You can start to see why BL/JL were v enthusiastic when talking through the development / exploration potential on the investor conference call last summer. The only current production wells in all 7x development concessions that produces from the AEB reservoir are the 2 in the ASH field (including the new ASH-2 well). Combine that with the recent upside successes in the Bahariya reservoir over the past 12 months and the picture is looking good. A re-rate on the P reserves in the ASH field should also be forthcoming in 2020 - only c. 1/2 million barrels of 2P oil (gross) and nil gas in the latest CPR .
Enjoy the weekend
I'd agree with that levistubbs, there's going to be a headwind of placing shares and some old warrants for a while. I've resigned myself to growling at the SP for the foreseeable, focussing on the business instead.
FYI raised a clarification question with RKH yesterday about well ASH-2 in the RNS. Had a reply this morning.
Q. ASH -2 Well - Does this well qualify as the 2nd exploration well committed to as part of the 3 year exploration licence or is it classified as a development well? From United Oil & Gas' AIM Re-Admission Document (Dec'19) P.226 - ' the structure of the ASH field has recently been reinterpreted by the Operator, resulting in the south-western part of the structure being reclassified as an exploration Prospect'.
A. The ASH-2 well does not qualify as the 2nd exploration well committed to as part of the 3-year exploration licence. This well was an outstanding commitment on the ASH Production Licence.
So still 1 more exploration well to drill before Sept'21 then.
If anyone has any questions re Abu Sennan, RKH's PR people- Vigo Comms - are very helpful and have quickly co-ordinated answers to my random questions since July
DelBoi - Sorry for the slow reply, been offline for a few days.
The multiple reservoir theme is similar to the previous successful Al-Jahraa 7 well which found pay in 5 intervals - that included the Upper Bahariya which was a new discovery. Looking on the map, the Al-Jahraa 12 well is pretty close by.
When BL referred to a 'drill in progress' on interview, I assume he means the 4th drill of 2019. Al-Jahraa 12 (Drill number 3) should be well into test assuming it was a success (TD should have been reached early October)
Mike - i don't want to be a killjoy but those twitter figures are a nonsense.
Grewber has already flagged the relevant info from the half yearly accounts - 8,562boe net for July/Aug - equates to 138bopd for Reabold Cali including MS
Also from the latest company presentation (Page13) - based on production from 1/9-15/9 - current production rate 150bopd net for Reabold California.
https://reabold.com/wp-content/uploads/2017/10/Corporate-Presentation-November-2019-v3.pdf
The twitter poster is either playing games or needs a calculator on his xmas list
welloilbeefooked - Correct, add $3.4m back onto the 2018 figures to get the true figure for Abu Sennan last year. They wrote off the costs of a duster and all the other related licence costs for another Egypt concession called El Qa'a last year. Gets a mention in the Readmission docs (and in Rockhoppers 2018 Annual report).
BL on the interview circuit
Proactive:
https://www.proactiveinvestors.co.uk/companies/news/908844/united-oil--gas-partners-with-bp-on---attractive-and-highly-profitable--new-egypt-assets-908844.html
Vox:
https://audioboom.com/posts/7447645-united-oil-gas-immupharma-w-resources
DelBoi -
FYI the 2nd well drilled this year - Al Jahraa 7 - gets a mention in the Readmission pack though the figs aren't included in the CPR tables
Page 24 - 'The successful well at Al Jahraa-7 has been put into production and in late August was producing at >600 bopd'
No mention of the result at Well 3 - Al Jahraa 12- or if drilling of the final 2019 well has commenced that I've seen yet .. its 400 pages so I may have missed it. Initial flow rates for Al Jahraa 7 get a mention in the CPR on Page 213.
Production to UOG should be c. 1130 + 600*22% = 1,262boepd including Al Jahraa - 7
On ********** later according to their twitter page
https://twitter.com/VoxPodcast/status/1204347696179548162
That's a very good question given TLW's current position. Their 'New Ventures' budget presumably is getting significantly trimmed and 2020's plans will probably be steered by whether the current Guyana drill is successful and finds light oil ?
Cheers for the link Chris, hope alls well mate
levistubbs - I think BL is just covering his tail given that they only currently have outline/preliminary approval for production in Italy. Roughly 9 months from full approval to first gas (from Po Valley website), so there won't be much cash generated in 2020 from Selva even if they get a wiggle on.
Looks like Neptune Energy scooped the innovation award UOG were nominated for:
https://twitter.com/NlNeptune/status/1201995407825526785
Jamaica has quietly disappeared from TLW's investor presentation and updates so i'm assuming that's purely because its not imminent rather than it being dismissed. Earlier in the year they walked away from another prospect pre drill (Mauritania I think) but they did mention it and why in a quarterly update.
As for Colter, the boundary shift RNS was a pain. I'd assumed they'd integrate the new data from the drill & sidetrack in 98/11a with the data in the 2 adjacent blocks and then market PEDL330/345 and the 3x offshore blocks as a bundle + you'd have 100% of Colter South and the 'Purbeck Prospect' ringfenced. Whether they park it until the new replacement blocks appear in a licencing round, god knows. A further complication is that Corfe Energy who were the 2nd biggest stakeholder after Corallian sold back their interest and walked away, so Corallian now has a very high working interest and cost carry. Finding a replacement farminee will be tough as things stand.
BL promised a full update on the new larger UOG and where he sees the company being in 12 months time on the last investor call.. I guess he'd include that in the readmission docs + a new company presentation pdf
I'm thinking the northern end of your range levistubbs. BL on the investor call said that he'd hate to have to go back to the market by under-raising this time round to cover off Egypt committed spend on development/exploration drills + the 2020 work programme in the rest of the portfolio. He was also not sure about whether he'd want to issue the full $5m of shares to RKH so he could keep their overall % stake in UOG to a desired level.
Looking at the current cash position, they had just <$2m at 30/6/19 and they burn c.£750k pa in G&A, so for 18 months - 1.5 x £750k x 1.29 ($/£ rate) = c.$1.5m by 31/12/20. So that's pretty much all the current bank balance.
Likely Inflows / Outflows to 31/12/20 from the current portfolio? a few thoughts..
1. Jamaica - well its all gone v quiet from TLW and it seems to have disappeared from the Champions League places, through the Europa into mid-table mediocrity so i'm assuming no drill in 2020. Looking at the last balance sheet, there is total spend on 3D etc of $2.5m. From memory the commitment to TLW was £2m so that should be largely it in terms of cash outflows in 2020
2. Selva - The last PO Valley presentation refers to first gas in Q4'20 with 3D seismic to follow in 2021. I'm not clear how the development costs are to be funded whether by debt or equity - i'm hoping the former given they should have access to RBL. Total gross development costs are Euros 3m for the automated gas plant + a 1km pipeline is required to connect to the Italian grid (from an old PO Valley presentation). Cashflow c.$2mpa to UOG once up and running.
3. Crown Sale to Hibiscus - milestone of c. $1m due on completion of the SPA + a further $3m expected by 31/12/20 on FDP approval. In his raise plans, BL would exclude the latter from his calcs as the payment wont be till late in 2020
4. Dorset onshore / offshore - Waddock X got a brief mention in Egdon's accounts this week but doesn't appear close - JL mentioned a well cost to UOG of c. $400k on an old investor call, so not massive if it does get the 2020 go-ahead. As for Colter.... well that's a total head scratcher and I see very little cash spend in 2020
5. 31st licencing round North Sea blocks - seismic reprocessing etc. Some outlay but again not large.