Member Info for cyan2

"This is a multi billion pound deal and @UKOGlistedonAIM #UKOG have now got #sumitomo at the table. Amazing. Brilliant. This is a big deal for the U.K."

Talk about 'spin' .

Actually a complete LOB. There is no deal; no-one has signed up to finance the Portland project which costs circa ONE BILLION pounds.

An onlooker has only sent a 'supportive' letter with no contractual commitment to progress further.

There are so many more hurdles for this 'dream chase' which is years from possible fruition.

Trouble for UKOG is; their finances are so dire; they may be long bust before sumitonmo gets their North sea Hydrogen production going.

"new funds will be needed"

And from where? More dilutions to come. The money UKOG will likely raise through the latest authority will soon be gone on just the basic company costs. Then what?

The hydrogen storage project is years away from fruition and requires a mind boggling BILLION pounds.

I think UKOG are going to find it hard work raising the money with other partners.

If it ever comes to fruition ; UKOG will have a miniscule financial stake.

Its another dream chase .

"Let the next rise begin"

Not likely when you are going to double the shares in issue; a halving in share price is more probable.

"all resolutions put to shareholders were duly passed"

Congratulations . The shares in issue will double in due course raising at best one million pounds.

Problem is ; UKOG spends over £276K every month on just basic admin; wages, keeping lights on and so on.

That means at best just an additional 4 months extended life for this hugely loss making company.

How are UKOG going to fund any actual worthwhile investment?

Should see 0.015p in due course

Well done Steve , you managed to very temporarily lift the price when you need votes by rehashing old news on the day of the AGM. Cynical.

The question is; has todays RNS revealed assistance with UKOG's current dire finances; is there a promise of financial support?

Answer ; no.

Penguins wrote "Look at a map - Bacton to Portland Port is a mighty long way, so no synergy there, and as for E Yorkshire there's already plenty of storage, and more already being planned there by SSE (sorry couldn't resist it)."

I read the RNS and was confused by this passage;

"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."

Have I missed something here; how on Earth does the Portland project assist with an off Norfolk facility?

The last so called 'hope' for the desperate ; a Loxley farmin.

A prospect so mouth watering ,yet, strangely, UKOG were not themselves keen on spending money drilling themselves.

Loxley depends on a farmin.

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."

"uncertainty" , "best use of the Company's working capital" ummmmm

Obviously too much of a gamble for Sanderson. Why on earth would anyone else gamble circa £8m to drill for a 50% interest in this previously passed over prospect.? No chance

Looks like the end may be much nearer than I thought.

Looks like there is a rush to exit and save something before administrators are appointed.

The ability of UKOG to raise sufficient working capital through the issue of the news shares is, imo, now fatally impaired.

Its not like UKOG did not give a clear warning in the results about material concerns over their ability to remain a going concern.

Under the thread title RE: "UKOG’s track record of loosing over £100m"

Ocelot wrote

"Unless I'm mistaken, total: £33.006m"

You can argue about the value or otherwise of intangibles all you like. All I know is this; I calculated the cash raised just since 2017 and its a lot of cash UKOG do not have now; wasted on hopeless drills and the pathetic dribble of oil from HH.

As I previously posted;

UKOG fund raises since 2017 ;

19.5.17 £6.5m placing

15.11.17 £10m loan

15.6.18 £5.5m Placing

2.7.18 £5m placing

4.7.18 £2m placing

27.3.19 £3.5m placing

7.8.19 £5.5m loan

2.12.19 £2m placing

28.4. 20 £1.275m placing

4.6.20 £ 4.2m placing

2.10.20 £2.2m placing

5.7.21 £5 m Placing

27.07.21 open offer O.462554 M

27.7.22 £1.25 m Placing

12.9.22 £3m Placing RNS extract "... at a price of 0.0875 pence per share (the "Placing Price").

The Placing Price represents a discount of approximately 20.3 per cent to the Closing Price of 0.1098 pence per Ordinary Share on 9 September 2022" Just look at how the share has slumped since then

28.06.2023 £3m loan

12.01.2024 0.75m placing

" The Placing Price represents a discount of 20 per cent to the Closing Price of 0.0250 pence per Ordinary Share on 11 January 2024"

£61,137,554 since 2017

Summary; UKOG disappeared an enormous sum of money and diluted shareholders to oblivion. Guess what; UKOG are about to double the shares in issue which should mean the current share price HALVES. The reason being , the cash they are about to raise by this dilution is only enough to pay working capital costs for a maximum of 4 months; It does NOT add value to the company; it just prolongs the wages.

"I think their best bet is to sell some likely sounding assets ."

Like what?

What 'valuable asset has UKOG to sell?

Avington 5% interest ? worth VERY little

Horndean , UKOG's 10% interest is their most profitable asset. " UKOG's net share of Horndean production revenues was £297,000 for calendar year 2023, with net earnings after costs of £140,000."

Overall profit from all UKOG's oil production was £275k. It follows that the profit from HH production was only £135K.

Not sure selling Horndean would raise enough to keep the lights on long.

The Loxley 'dream' will remain just that. No-one in their right mind will farmin and put up £7-8 million to appraisal drill on the basis of UKOG's re-interpretation of legacy data; not for 95% let alone the 50% UKOG offers.

UKOG's own confidence is pretty low; UKOG previously announced they planned to farm out Loxley because of "uncertainties" and that there were better uses of UKOG's cash resources elsewhere.

So Sanderson reckons LOXLEY is a poor gamble BUT he's happy to see others risk it. Instead he 'rolled the dice' with the company cash in Türkiye which he obviously thought a better bet. He lost .

What else has this company worthy ? The PPP farmin? That's a joke as PPP hasn't got the necessary cash to don anything significant.

The Portland £1,000 million project ? Who would want to partner UKOG who are at risk of administration. Anyway its a far distant dream ; many years before any cash MIGHT be generated that's IF the government thinks UKOG are fit.

You have to be clueless to buy this share now ahead of a likely doubling of the shares in issue because the funds raised thereby will last but a short while; maybe enough for 4 months working capital.

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; YET AGAIN.

"massive revenue in negotiation and will run for many years"

Hold your horses. There has to be an appraisal first to prove up or otherwise. UKOG have to find someone with VERY deep pockets willing to gamble £7m plus for that appraisal drill based on the re-interpreted data UKOG presents.

This 'prospect' has been known about for years. Why has no-one else gone for it before ?.

It looks like another puffed up project; another stunning 'find' everyone else was too stupid to recognize; heard that all before with the Kimmeridge hype.

UKOG have credibility issues

"Have they invested in the Falklands or something?"

LOL; UKOG have so little cash now . You need tens of millions , no , actually hundreds of millions to play in The Falkland's. UKOG have a few hundred thousand and are going raise just enough by doubling the shares in issue to pay company running costs for a few months more; then what? There is no room for investment; priority is paying wages.

"a virtuous circle."

Sanderson likes the UKOG " virtuous circle"; printing money by issuing more shares ; diluting shareholders to oblivion BUT taking ever increasing wage despite not achieving anything and losing millions every year.

Nothing has changed here.

UKOG is about to double the number of shares in issue yet some thinks that means the share price will double instead of actually halving. Good grief; no wonder Sanderson keeps this show on the road ; there is a total lack of understanding of how bad UKOG's numbers are amongst some 'investors'

"One of the attractions of Turkey was the prospect of timely monetization of any commercial finds."

Trouble is; it was a wild GAMBLE and Sanderson blew an enormous amount of cash leaving the company fatally weakened.

He should not have gambled away most of UKOG's cash resources. It was all or nothing ; and surprise surprise; it was a failure. When you drill paying 100% of the costs ,without doing seismic first, in a hopelessly unproductive area anyway; the odds of failure were very high.

Was there nowhere else considered worth investing in ?

He should have resigned for this reckless behaviour.

I note the discussion around HH and its valuation and apparent potential.

If HH is really worth anything significant and that new drilling could be rewarding; I have to ask; Why did Sanderson 'roll the dice' (his words ) in Türkiye and NOT invest in HH?

Millions blown on a gamble when he supposedly had a sure fire winner with HH.

Maybe he knows that HH is not so great Afterall.

HH is too marginal for anyone without deep pockets to want to take on alone and improve, imo.

The bottom line is this; UKOG appears to be no longer a going concern;

".........there can be no certainty that sufficient funding can be obtained in the timescales required...."

"....there remains a material uncertainty that may cause significant doubt over the going concern nature of the Group.

The independent auditor's report also refers to material uncertainty related to going concern."

Its going to be a real struggle to yet again raise enough cash through new equity; I think its a bridge to far now BUT it won't stop Sanderson trying.

"It would not surprise me to see them asking for another 1bn shares as one of the resolutions."

1 billion new shares will not raise enough to last one month . Look at the admin costs alone ; £3.320 million pa that's about 277k a month.

I billion issued at a realistic price of 0.02p, (typical 20% discount), raises only £200K

If you want UKOG to not just survive but continue to finance some very basic works, like Portland planning; UKOG will need to raise at least £3m imo.

That's likely 15 billion shares.

Is it possible? Hard to see anyone wanting that number in a placing of the type that raised £750k in January when the share price was much higher.

UKOG may have to try and raise in bitesize pieces; say 5 billion lots backed by a ramping series of RNS's

Remember this; UKOG burnt through an average of £8.7m in fund raises each year since 2017.

To drill again in Türkiye will require UKOG to put up £1.2 m. I do not see any further Turkish drilling activity now.

Its a lot more expensive to drill in UK and what with the very poor state of PPP finances one can reasonably rule out any further drilling as suggested in the farmin with PPP.

The farmin RNS from March 2023 reminded everyone that : "Planning and environmental consents remain in place for a further 4 production wells at Horse Hill"

There is no chance they will be financed now.

Its all about staggering on , paying inflated wages, and hoping for a Loxley miracle.

Next attempt to raise working capital here is going to be interesting.

The company spends £3.32m on Just admin ; lost £3.5m in last year has a market cap sub £1m now.

I reckon UKOG really needs to raise £3m to keep lights on.

How about an open offer; I am sure it will be very popular with shareholders. Offer 15 billion more shares at 0.02p to raise £3m.

What committed shareholder would turn his nose up at buying another 4 or maybe 5 new shares at 0.02p for each one they presently hold ?

Alternative is the expensive death spiral IF UKOG can find anyone to 'loan' them £3m

Can not be long now. The end is in sight. The delay in announcing AGM details suggests to me they are considering their position and likely going to have to call it a day. The Loxley RNS really shows how bleak the situation is ; no chance of a near term good news lift from a Loxley farm out. I do not think it will ever happen now.

Its just no longer a credible 'going concern; They have run out of goodwill and I can not see UKOG being able to issue several billion more shares.

Looking at the numbers; what third party would loan UKOG anymore?.

"Why the hell did shareholders vote and give authority to issue more shares? "

Sanderson has the shareholders over a barrel. If authorisation to endless share issues is not given then you will lose all your investment; the company can only exist by continuous share creations.

Its brilliant, for Sanderson and co; Has an endless license to print money on the faint hope that his next get rich scheme actually comes to anything.

Be it Billions of barrels in the Kimmeridge that only he was clever enough to find; if that fails, maybe a huge gas field no-one else has thought to develop; or how about missed pay's in Türkiye, or the next shiny thing Hydrogen storage or how about geothermal? Its endless ...... until everyone wakes up and finds they have lost 99.9% of their money and finally smells the coffee.

Skwizz posted ""The RNS smacks of desperation"

Exactly what I thought."

UKOG should have saved themselves the RNS fee . Its a revelation; UKOG have NOT been unable to farm out LOXLEY and they are no closer to one today than they were 2 years ago. The other two interested parties must be considered 'timewasters ' because UKOG would not be hiring 'Envoi' to market Loxley otherwise.

Envoi, oh dear, oh dear. say no more.

UKOG actually shot themselves in the foot today with that dismal RNS.