Member Info for cyan2

"downward pressure should be relieved."

I think UKOG have fixed the GM meeting with the 3 Billion share issue which they must have calculated as the number of votes they needed to win.

Most think Supreme court will not go against UKOG

The BIG problem is the amount of cash UKOG needs to raise. They need circa £3m for the next 12 months admin alone. To finance operations like another 5th rate Turkish drill; UKOG will need much more on top.

I reckon if UKOG had the authority to issue shares with a 20% discount; never mind consolidation, say they had authority already; they would have to issue 75 Billion more shares. Do the maths ; 33 billion shares are now priced around 0.0065 ; market cap now circa £1.95m. To raise circa £4m they will have to issue at least 75 Billion more shares.

It does depend also on just how much cash UKOG has now, BUT, we do know they need cash "in the near future" for working capital.

Its obvious that the value of each shareholders equity is going to be decimated.

Market cap is now sub £2million. The company will need to raise circa £3m to cover its basic admin before they think of funding any new drills.

Those numbers begin to give everyone a clue to the scale of fundraising to come and the number of new shares required.

It shows an awful direction of travel.

"Can they afford clean up and restoration of BB/HH?"

More pressing is can they get the accounts signed off in near future with a declaration that UKOG is going concern?

Can they demonstrate they have sufficient capital for next 12 months?

Basic admin , including paying wages , is a lot .

Accounts for year ending 30.09.2022

"Administration expenses during the year amounted to £2.7 million (2021: £2.1 million). An Operating loss for the year of £5.4 million was recorded (2021: £3.8 million). Finance costs amounted to £0.2 million (2021: £0.1 million), relating primarily to unwinding of discounts on decommissioning provisions."

If only Sanderson had been more focussed and not chasing so many expensive project dreams.

I posted this on ADVFN in 2022

"Can someone explain this to me please.

UKOG spent a fortune on Lawyers to get planning permission for a Loxley gas "appraisal" drill. Sanderson had bigged up Loxley's potential for ages.

Why is he NOW reluctant to drill it alone? Why is he not prepared to put money where his mouth WAS. The excuses put forward are "uncertainties" and better use of UKOG's cash resources elsewhere.

Elsewhere like.. hydrogen storage!

Sanderson proposes to spend "a modest" "FEW MILLION " over the next TWO years seeking planning permissions for a mind bogglingly expensive hydrogen gas project whose economic (profitability) case is opaque BUT will cost north of ONE BILLION pounds.

Its insane. Another crazy dream chase.

Time scale to potential START of construction is 4 years! Bet that time slips if it ever happens.

Listen to Sanderson here; https://www.youtube.com/watch?v=qLFkt9iBijY

UKOG should be using those "modest" "few million" drilling Loxley. Sanderson's reluctance to drill alone at loxley suggests to me that Sanderson is not that confident in the economic case of Loxley.

The waste of cash in chasing so many projects is lamentable.

The directors refuse to buy their company's shares and the reason is obvious; a business model that relies on massive dilution s that destroy shareholders value.

Will Sanderson get away yet another placing in 12 weeks, and at what price?"

"What happens at the agm rerun if shareholders revolt again and UKOG cannot issue any more confetti?"

Imo, UKOG will no longer be a going concern and they should be advised to call in administrators.

I think that the issue of 3 billion more shares to trustees has been calculated to ensure UKOG gets all resolution passed.

A whole new cycle of confetti share issues will follow.

Those getting out have maybe realised that UKOG will most likely succeed in passing all the resolutions after the recent 3 billion share issue to trustees.

Some seem to have done the maths ; seen how much capital UKOG needs to raise for its ambitions and just basic working capital.

As I have shown ; UKOG has previously raised an average £8.6 million each year to keep the business afloat chasing dreams.

They have recognised that , once authority to issue new shares is granted there will have to be dilution of the equity on a scale not seen before.

They need to raise 'working capital, "in the near future". They need millions just to cover their admin. With the market value where it is , you can see that there will have to be enormous further dilutions of the consolidated shares , when issued.

Is there an injunction against UKOG prohibiting them from further activity.? Have I missed something in a UKOG RNS?

22 December 2020

UK Oil & Gas PLC

("UKOG" or the "Company")

Horse Hill judicial review challenge comprehensively dismissed by judge

UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce that, following the judicial review ("JR") hearing of 17-18 November 2020, the Hon Justice Holgate has today published his judgement which comprehensively dismisses the challenge to the lawfulness of Surrey County Council's ("SCC") September 2019 planning consent for long-term oil production at the Company's 85.635% owned Horse Hill oil field. The written judgement rejects the challenge's three grounds and, therefore, the Company's production planning consent remains in full force.

The unsuccessful challenge by Sarah Finch for the Weald Action Group claimed that SCC failed to assess the indirect greenhouse gas emissions of the development arising from the eventual combustion of any produced oil, consequently their decision did not comply with the governing EU and Town and Country Planning Act environmental impact assessment ("EIA") regulations.

13 May 2022

UK Oil & Gas PLC

("UKOG" or the "Company")

One-year work programme extension on PEDL137 Horse Hill

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the North Sea Transition Authority (formerly the Oil and Gas Authority) has granted a one-year extension to the agreed Retention Area work programme of the Company's operated PEDL137 licence (UKOG 85.635%) containing the producing Horse Hill oil field and its underlying Kimmeridge oil pool.

The extension grants an additional year in which to drill a second Horse Hill Kimmeridge well, with the commencement of drilling to be prior to 30th September 2023.

"SS awarded himself the bonus for getting the planning permission past to drill more wells at Horsehill."

I can not recall the contrived justification . Assuming your recollection is correct; I have this to ask;

Its been five years and production has plummeted to 44 barrels a day.

The 15th March 2019 RNS update had these lines;

"The continuous Portland dry oil flow (i.e. oil with zero water content), at a stable daily average rate of over 220 barrels per day ("bopd"), forms a key part of the schedule of works required to finalise the Portland field development plan and to the targeted establishment of permanent long-term Portland production by end 2019."

"For prudent reservoir management purposes, the average test production rate from the Portland section has been maintained below the previously reported 362 bopd calculated optimised sustainable rate."

Note no water. Today ,tons of water and a pitiful 44 BOPD.

One suspects the reason he has not bothered to further drill more at HH is because they have determined its a failing asset.

Instead he took UKOG off on a disastrous Turkish adventure and stupidly drilled without doing seismic first.

Never forget; Sanderson was awarded a £310 K BONUS in 2019

For WHAT?

UKOG fund raises since 2017 only

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

So I make that £60,387,554 since 2017

Lets say its 7 years; so that's an average of £8.6 million having to be injected every year.

I must apologise for my 23rd Feb post; "this hugely loss making company that every year has requires £5million every year"

I underestimated ; sorry

"... only worth £100 now, so it's no good even thinking about selling them"

There is an awful lot of equity value destruction to come with the need to raise millions in working capital ' in the near future'

I predict your £100 worth will be £50 worth in 6 months or less.

What are the chances that this company's management will get lucky in its endeavours? They have a track record of reckless investments on the back of reckless claims.

"The Directors therefore seek specific shareholder approval for authority to undertake the necessary capital reorganisation, issue shares and dis-apply pre-emption rights in respect of those shares in order that the Company can raise money for its working capital obligations."

Practically a gun to shareholders head. If there are not enough votes in favour of UKOG issuing LOTS more share ; then, its effectively curtains. If the company has not got 'working capital' they are bust. No chance of a white knight here, imo; no chance of a 'bid' for the company. Who in their right mind would want to take on this hugely loss making company that every year has requires £5million every year in support from shareholders.

When the new round of share issues starts its going to be devastating to equity holders; dilution on steroids as the company's market value is slow. Do the maths.

"Directors filling their pension pot at low share price just before an offer is annouced. Ill be topping up tomorrow:)"

Absolute drivel. Ridiculous attempt to ramp; insinuating that directors issued all these shares because they know a bid is coming. Ummm isn't that a bit like insider trading? You are effectively accusing UKOG management of criminality; outrageous lol.

"Consequently, the Company's EBT trustees, Altum Trustees Ltd ("Trustees"), have today subscribed for 3,005,000,000 ordinary shares in the Company "

What an interesting time to have decided to issue 3 billion more shares. Just after a meeting that was supposed to vote for share consolidation and authority to issue lots more shares; but was adjourned for reasons some suspect was because UKOG did not have the votes in the bag.

One wonders how the trustees will vote in the GM when its reconvened, lol. I wonder if the resolutions wordings will be much different at the next vote some time after 27th? Oh dear oh dear

Deltavegatheta wrote;

"The tangible assets need to be valued on real projected cash flows and have HH at £800k.

If the intangible valuation were accurate UKOG wouldn't of had to write-down so much of HH when it moved to the tangible line."

Indeed ; they had a huge write down

RNS dated 16.04.2021

extract;

"... this year we have written down some £17.25 million of our historic investments, primarily at Horse Hill and the newly relinquished PEDL143 licence. The write down this year will therefore not impact upon any future success or revenues from our Turkish assets."

Shocking isn't? blew money on PEDL 143 and gave it up a year later, and HH, oh dear oh dear ; as for " future success or revenues from our Turkish assets." less said the better

Big effort to ramp this share today;

Insidious wrote

"The 91.8 square kilometres (35.5 square miles) PEDL143 licence is located to the immediate west of the Horse Hill-1 oil field, where 9,245 million barrels of oil in just 55 square miles were discovered in the Horse Hill licences (PEDL137 and PEDL246)."

UKOG paid a fortune for extra interest in PEDL143 in 2019 only in 1 years later to give it up. Its worthless;

see here

RNS dated 16th October 2020 refers;

PEDL143 Update (UKOG 67.5%)

"A detailed study examining the viability of drilling the A24 (formerly Holmwood) Portland prospect's centre from selected sites outside the Surrey Hills Area of Outstanding Natural Beauty, each over 3 km from the target, concludes that the required long-reach/shallow target-depth wells are neither technically viable or economically feasible. Consequently, UKOG and its partners have now relinquished their interests in the licence."

"good cash flow to fund other things"

"we definitely have enough money "

Never to be forgotten reassurances from Sanderson .

Only one man will be retiring to The Bahamas

https://www.youtube.com/watch?v=V1_stpqkU7w

Management have taken millions in wages .

Apparently, them actually buying any shares was NOT thought a good idea.

Forget about the pitiful amount Sanderson bought which was only in response to the "Sanderson Out" campaign .

Some of us remember that ALL directors committed themselves to buying shares every month UNLESS compelling personal financial circumstances precluded that. Guess what; All found good reasons not to buy this next to worthless paper which they knew would be diluted ad-infinitum.

What a cynical management; an utter disgrace.

Now the clock is ticking and the longer the wait to a UKOG RNS , the more likely it is to be really bad news.

Study the RNS published 31st March 2023 which had the accounts for the year ending 30.09.2022

Extract;

"Administration expenses during the year amounted to £2.7 million (2021: £2.1 million). An Operating loss for the year of £5.4 million was recorded (2021: £3.8 million). Finance costs amounted to £0.2 million (2021: £0.1 million), relating primarily to unwinding of discounts on decommissioning provisions."