Member Info for cyan2

This paragraph in the interim results interested me;

"While the Company continues to seek compelling M&A opportunities that could bring cash flow, portfolio diversification and quality investment opportunities into the business, it is now looking through a wider lens than the historic focus on purely UK oil and gas assets"

With some cash at hand, what might be a way forward while we wait on others decisions?

What opportunities might management be considering with that 'wider lens' ?

"UKEn's hydrogen storage projects could provide keystone storage for SEEL's Bacton Hydrogen (generation) Project", a proposed 590 Mega Watt low-carbon hydrogen generation facility located close to the existing Bacton Natural Gas Terminals in Norfolk."

From the article;

"The Solent Cluster, of which UKEn is a member, applied for the Track 2 round but was unsuccessful."

also

"UKOG’s Prospects in the allocation round

Several challenges confront UKOG’s proposed application. Remember a maximum of only two projects will be successful.

Location is far from planned CCUS clusters

The location of the scheme, Portland in Dorset, is at a severe disadvantage as it is nowhere near any of the CCUS clusters, so according to the Governments minded position will be lacking the expected “strategic coherence” with the CCUS clusters."

I do not see how the geography makes the Portland project a credible area for them to invest in when they are mentioning Bacton in Norfolk.

"The troll click bait article is wrong on several counts but I won't help the trolls out by posting the facts here."

Really? How does posting your "facts" help trolls?

All you have to offer are the LOS which have little real value. They are not offering to put up the BILLION pounds; they might use a facility IF its constructed many years from now.

Note Sanderson hoped for a FID in 2026 0r 2027.

Who is going to put up a billion for this ill placed project?

Excellent article link. A must read for those who think UKOG are certain to succeed.

A couple of extracts;

UKOG will need to demonstrate ;

"Confirmation of the ability to reach Final Investment Decision (FID) from existing liquidity sources (equity).

Confirmation of the ability to fund post FID from existing liquidity sources.

Note that the available funding is for revenue support in selling the storage capacity, there is no upfront money for capital investment."

Only a billion pounds required for this ill placed dream.

The last line says it all really ;

"It needs a new narrative to secure funding for its operations, including the £338k annual salary of its CEO."

UKOG is about keeping 'investors' hooked on dream chases. As long as there's money for wages.

"Majors are lining up so join in via letters of support LOS."

What RWE are saying is; you build it ( only £1 billion) and we might use your facility;

RWE wrote;

2 extracts;

"We see the operation of UKEn's hydrogen storage projects as being potentially beneficial to RWE .........

"In support of this proposal, we have committed to working with UKEn to ensure that the design and delivery of the storage facility meets the needs of RWE and other potential industry users."

"What's not to like." The numbers are what's not to like.

UKOG needs circa £275k a month to just cover general admin costs.

It was nailed on that UKOG would need to raise funds and a million will last 4 months at best, depends on how much the projects paper works cost.

UKOG will need even more cash in near future.

The HH production numbers are not to like and its , imo, now losing money but no hint UKOG intend spending anything to improve things there. Maybe they have concluded its just a money pit now?

What's not to like? The incredible capital costs involved in the storage project ; circa £1 BILLION with years before anything happens ; that's IF UKOG can find someone to pay. What TINY fraction of an interest would this minnow be left with IF it happens.?

Dilution is the name of the game ; and it will continue with this business losing millions every year dream chasing, again.

What has fundamentally changed with UKOG's prospects. ? They need another cash injection very soon .

Absolutely ridiculous ramping;

"And it seems a lot of people want in with the HUGE potential to be well beyond 33.5m NAV........£Billions possibly with full hydrogen project support from government on the cards!!!"

'Billions' How on Earth can that be remotely credible? The hydrogen project capital costs circa £1 billion. Even with a market cap of circa £2m, UKOG , at best, would only be offered a tiny fraction of an interest IF they find a partner too put up the capital costs.

Another pump bubble likely to burst as seen before. Who will be left holding the confetti?

"..an £8million punt isn't a big deal anymore, is it ?? lol"

Shame UKOG hasn't got the money to go it alone isn't it?

Its another of Sanderson's "roll of the dice" with others money; that's IF anyone will trust him with it .

With his track record and expertise ; what could possibly go wrong ?

Good link from Ibug;

Cautionary highlights;

"..are now interpreted.."

"UKOG has remapped the existing 2D seismic...."

" ..if the planned appraisal well confirms a gas discovery"

"likely to cost £ 8 million "

"IF", All shows its really an £8m gamble.

"When could this be completed?"

UKOG have to find someone first with very deep pockets to gamble circa £8m for a Loxley appraisal drill. It was declared at the Loxley planning enquiry , now years ago, that the drill cost was £7m . Lot of inflation since.

Not going to happen , imo. Who is going to trust and gamble on UKOG's self serving reinterpretation of legacy data?

Why on earth are people buying this junk paper? The pitiful amount UKOG raised will last 5 minutes.

Are the government going to look favourably at a company a heart beat away from going bust.

The Broadford bridge restoration costs is a ticking time bomb in the background.

Does no-one look at the accounts? the cash left? the cash burn? and the ridiculous costs of the Hydrogen fantasy project?

I did earlier post that I thought HH may now be losing money and the RNS lies suggests I am not too far from the truth;

"Revenue for the six months reduced to £0.6 million which was largely due to an oil production decrease at Horse Hill."

And, as if we did not know it;

"the Company will likely be required to raise further funds by the end of the third quarter this year."

How Stephen , HOW?

You have not paid off the last loan yet and THEY are not going to loan you any more.

Very dismal reading indeed.

UKOG must have had a faulty calculator as on 2nd April UKOG RNS'd;

UKOG's net share of Horndean production revenues was £297,000 for calendar year 2023, with net earnings after costs of £140,000."

Today they RNS ; "In 2023, UKOG's net share of Horndean production revenues was £297,000, with net earnings after costs of £147,000."

Horndean is UKOG's best asset; be it £140k or £147K ,and is more profitable than HH which I suspect maybe now slipping into loss territory .

The RNS just highlights how dire UKOG's numbers are; with admin alone over £276K per MONTH. £12.5k a month from Horndean makes sod all difference to UKOG's desperate state. Remember ; UKOG lost £3.5m last year.

UKOG are running out of cash fast. How will they refinance?

"I wonder when they will return to Broadford Bridge"

The only reason UKOG will return to BB is to clear the site.. Not sure they even have the money to do that.

A reminder;

From the YE 2019 annual results we learnt that Sanderson's BB 'roll of the dice' cost dearly;

"There was also one exceptional charge. This was an exploration and evaluation write-off of GBP11.56 million. This was primarily comprised of a GBP9.25 million write-off of the BB-1 well and the BB-1z test. The BB-1 well was impaired, as it was determined that as a result of wellbore damage we would be unable to be used for production. The BB-1z test was impaired because, although oil flowed from the well it was determined that it was unlikely to be commercial. The larger majority of the remaining exploration write off (GBP1.21 million) related to Holmwood where the operator abandoned the site."

No value in BB. Its actually a huge liability now.

I must apologise for being too optimistic in my prediction in my post from 22nd May; Extract;

"Imo you will be lucky if the share stands at 0.015p a few months from now especially as the company will be forced to look for further working capital.."

The death spiral has caused UKOG to pass the never to return from 'Event horizon'. Its accelerating towards its total oblivion .

There have been desperate, feeble attempts to boost the company with RNS's regarding worthless LOS. No-one is going to inject capital into this disaster.

Administration is nailed on, imo, and sooner than many suspect.

The Turkish "roll of the dice" was a terribly bad gamble . Not helped by failing to do seismic first; incredible isn't it.?

UKOG can review the data all they like; won't change the financial facts of life; UKOG have not got the cash to again waste in Türkiye chasing 5th rate prospects.

UKOG's share of another Turkish drill would be circa £1.2m. UKOG can hardly keep the lights on let alone dream of another roll of the dice gamble; they are nearly out of cash.

Sanderson commented in the UKOG RNS "The Court's rather perplexing retrospective ruling, which is counter to all prior judgements, further underscores why the Company's focus over the past few years has shifted away from oil and gas and firmly towards creating and delivering strategic underground hydrogen storage.."

And where does Sanderson think this leaves Loxley and any farm out prospects?

"the Company's focus over the past few years has shifted away from oil and gas "

Not a word on Loxley ; looks like Sanderson has given up hope.

This company is doomed , imo, to fall into administration as its running on fumes now,. Where will new funding come from?

"Loxley, one of the UK onshore's largest historic gas discoveries."

Why was it that no-one else wanted to exploit this ' historic' discovery?

Even UKOG don't like the risking of £7m on an appraisal drill . (drill cost revealed at Loxley enquiry).

What is the "uncertainty" Stephen?

UKOG RNS 20th July 2022;

"..the Company will now implement a pre-planned farmout programme, whereby the Company's costs would be either fully or part carried by any farminee. The Company believes that this is the most prudent course of action to both manage uncertainty and to help ensure the best use of the Company's working capital."

"best use of the Company's working capital"

My translation; a too risky GAMBLE on UKOG's reinterpretation of legacy data.

"The company should be honest and now state that Horse Hill is NON commercial"

The annual results show that HH only made £135k profit in the last financial year.

The latest production numbers suggests HH will be now losing money. UKOG are not conducting any remedial actions to address decline or reduce production costs, and that tells me they are nearly out of cash.

The end maybe very much closer than previously thought. Death spiral is living up to its name.

You've been warned many times. Do not be surprised when suspension is announced.

With an enormous amount of new shares to shift UKOG need to 'excite' the gullible with another 'outstanding' RNS.

Look out for another wordy RNS to suck in those who have not taken the time to analyse UKOG's numbers.

There are but a matter of weeks worth of working capital left.

UKOG needs a miracle to survive as a going concern , but , realistically, from where?

Where will UKOG find a multimillion pound cash injection to pay this companies huge running costs and cover another year of over £3 million losses?

Certainly not from issuing more shares, imo.

"Sp looks ready to move up from here"

Not really. With an enormous dilution coming and no credible likelihood of new significant investment news; share look more likely to HALVE. Seems silly to buy now.

Double the shares ; price will half. There is no added value with the dilutions proceeds just adding the equivalent of just 4 months basic company running costs.

UKOG have not got the cash to do anything but paper planning and issuing ramping RNS's and tweets. Won't be long before they need even more working capital.

I see 0.015 after next dilution; that's if UKOG have not been advised to wind up as they are no longer a going concern.