Member Info for deltavegatheta

"Analysis or justification of the choice of the size of the facility (justification should be relative to anticipated user demand, not based on what is possible in geological terms)"

From https://assets.publishing.service.gov.uk/media/657a022d0467eb001355f7a5/hydrogen-transport-business-model-market-engagement-on-first-allocation-round.pdf

It is nonsense to think renewable electricity from the North Sea will be transmitted though an overloaded National Grid to Dorset to be turned into hydrogen when you could produce/store that hydrogen much nearer, say in Yorkshire.

There is no demand for large scale hydrogen storage in Dorset.

The £300k required to pay-off the loan is about 27% of current marcap. They never hold more than 6% of the company between RF/YA to avoid having to issue an RNS, so there at least 5 rounds still to go.

But once to CLN is paid off the share issues will continue as UKOG’s need for cash is far higher than it’s ability to generate cash. Cash burn is £250k pm currently, and there’s the £1m required for BB restoration.

Oh yes and there is zero chance of them getting any government support unless they managed to get Ms Meat Tax Coutinho to change the rules so that you don’t need a pipeline or a customer or the ability to fund the scheme yourself.

I have a feeling that it will be the BB restoration costs that causes UKOG to go bankrupt as it's a legal £1m liability they can be taken to court for and beyond UKOG's ability to raise funds. Try to raise money for a sexy hydrogen storage dream is one thing, but trying to raise £1m to fill a hole in will be very challenging.

The accounts for UKOG (234) LTD, which owns Broadford Bridge, are now available on the Companies House website. They show that BB's share of "Provisions - decommissioning" is £1,105,295.

That means that UKOG needs to at least double it's shares outstanding just to pay for restoring BB following the councils decision in March.

When you add to that the £250k per month it is currently burning on costs such as SS's salary, a multi-million fund raising is coming.

Say they manage to sort out the planning, how are they going to fund the surveys and drilling? The plan was to farm that out to PPP, but that agreement expired June 30th. PPP is broke and now focussed on Texas, they have moved on.

Dorset, being the other end of the country from where most renewable energy is generated, is a terrible location to store green hydrogen. I think they realise that now which is why they have started to look at sites in Yorkshire even though they can’t fund one project let alone two..

I hope the journalist had a nice lunch as he swallowed wholesale SS's BS.

How's the hydrogen going to get to Dorset? Where is going to be used after it's been stored? Where is the financial backing for the scheme? None of these questions are addressed by the article.

For some reason the Horse Hill Development Ltd accounts have been delayed to September 2024:

https://find-and-update.company-information.service.gov.uk/company/08808553

UKOG must have asked for an extension as the accounts should of been filed by June 30th like the other subsidiaries.

If the agreement expires then there will be no HH-3 seismic or drilling. They no longer have planning permission away.

Cash as of March 30th: £952k

Cash burn on operations: £574k/6m => £95k pm

Cash burn on investing: £945/6m => £157k pm

Total operating and investing burn per month = £252k pm

=> enough cash for 952/252 = 3.7 months

3.7 months after March 30th is end of July 2024

At current SP, after paying off RF/YA a placing of all authorised shares at only a 20% discount they would raise about £200k, not even enough to survive one more month.

A multi-million fundraising is coming!

Looks like PPP are walking away from HH farm-in.

Not surprising given PPP's cash position, limited ability to raise finance and focus on Texas.

Will they try to get Envoi to market HH3 as well? Good luck with that one given it has no planning permission.

So if the revenue figure has also already been disclosed there is 0% new information in this RNS.

Desperation must be setting in at UKOG HQ, points to bad interims when they eventually publish them.

Star Energy published this CPR on Feb 12th:

https://www.starenergygroupplc.com/wp-content/uploads/2024/02/DM-Competent-Persons-Report-2023.pdf

SS must of been searching for some vaguely upbeat news and discovered this 4 month old piece of paper.

The process will be on hold due to the general election, civil servants seem to have to sit around with their feet up during elections.

Did you you notice that one of the reasons for the criteria is to "Discourage speculative applications"? If you look up 'speculative' in a dictionary it has a picture of SS.

52 Week Low 0.0165

52 Week Low Date 27-Jun-2024

The government is running two allocation rounds later this year, one for hydrogen storage and one for hydrogen transport, i.e. pipelines.

Following applications the government will try to pair storage and transport applications. From https://assets.publishing.service.gov.uk/media/657a022d0467eb001355f7a5/hydrogen-transport-business-model-market-engagement-on-first-allocation-round.pdf

“Projects would then progress onto the next stage of the assessment process: the hydrogen transport and storage (T&S) cohort assessment. At the T&S cohort assessment stage, we would combine the hydrogen T&S projects to create a cohort. This cohort would be assessed to check T&S projects are able to align, and that the cohort as a whole also contributes to our strategic objectives in a coherent way.”

So to be successful UKOG needs someone to also apply for the transport scheme in the same area, i.e. Dorset. The only company remotely likely to do that was SGN.

What the RNS shows is that SGN is years away from that with SGN only prepared to write a general letter of encouragement which is a long way from saying that SGN is working on applying for this years hydrogen transport allocation round.

There are other schemes up north where planning permission for both storage and transport within the same cluster are actively being worked on, see https://medium.com/@h2_happenings/does-ukogs-portland-hydrogen-storage-scheme-make-sense-d317f305bb67.

PPP have just received another First Gazette notice for compulsory strike-off from Companies House. It’s shares are illiquid and its well produced no oil in march.

It’s a race between PPP and UKOG as to which will delist first.

CLN is the Convertible Loan Note entered into here:

https://www.lse.co.uk/rns/UKOG/1633-million-funding-facility-umgrhiv567xi1yc.html

The money raised is long since spent on Turkey and SS's salary.

EBT is the Employee Benefit Trust announced here:

https://www.lse.co.uk/rns/UKOG/employee-benefit-trust-share-subscription-woz4vwfipgeyh98.html

There was a General Meeting to allow more shares to be issued where UKOG were looking at loosing the vote, so they adjourned the meeting, issued 3 million new shares to the EBT then re-held the meeting where with the EBT's help they managed to win the vote.

Since 11th Jan 68% more shares have been issued and not a cent of new cash has been raised, all gone on CLN and EBT.

I don't know about the POO, but the BS has shown an uptick