Motley Fool one year ago17 Apr 2020 08:52
"UKOG has claimed the Kimmeridge is a discovery of “national significance” and a “world class potential resource.” (The numbers bandied about are equivalent to the proven reserves of Iran.) Yet no large oil company has competed for the licence interests that numerous small players have been happily selling to UKOG for a relative pittance. (Q. Has the company, as some experts claim, exaggerated the potential?)
UKOG has had multiple dilutive share placings, in some of which “institutional” investors participated. Yet no institution has appeared as a major shareholder. (Q. Have institutional investors no faith in the company but been happy to turn a quick buck by forward-selling discounted placing shares to unworldly retail punters?)
UKOG chief executive Stephen Sanderson has trumpeted the company as grossly undervalued, even when the share price was significantly higher than the current 1.125p (£68m market cap). Yet in four-and-a-half years, he hasn’t bought a single share or exercised a single option. (Q. Is Sanderson, who draws a generous cash salary — £275,000 last year — fully aligned with the interests of shareholders?)"