Member Info for deltavegatheta

Companies are allowed to update resolutions by making amendments, that's what happen at the GM:

Notice says £1,476.75

https://www.ukogplc.com/ul/Notice%20of%20Reconvened%20General%20Meeting%2023022024%20for%20issue.pdf

Results RNS says £1,627.00

https://www.lse.co.uk/rns/UKOG/result-of-reconvened-general-meeting-df2nwm9i4k7d0i1.html

Ordinary resolutions are ok to amend, but you should give 21 days notice to amend a special resolution:

https://uk.practicallaw.thomsonreuters.com/8-100-3206

So it looks like UKOG again broke the Companies Act when it did so at the reconvened GM and maybe at the AGM.

52 Week Low 0.021

52 Week Low Date 30-May-2024

As they didn't publish the wording of the resolution that was passed we don't know if they upped the figure to 4,104,050,000 shares to take account of the share issues since the AGM Notice.

They did increase the figure last time, so I suspect they did the same this time.

If you exclude the 387,584,254 EBT shares only 65% voted for the no pre-emptive rights special resolution, so just like last time, it was the EBT trick that sealed it for them.

This link was posted in the other place yesterday:

https://medium.com/@h2_happenings/does-ukogs-portland-hydrogen-storage-scheme-make-sense-d317f305bb67

Explains why UKOG aren't likely to be getting any Gov support, there are far better hydrogen storage schemes already well advanced.

The letter of support has now also be removed from UKEn’s website:

https://ukenergystorage.co.uk/

Summit/Sumitomo have clearly had second thoughts..

It isn't necessary to count up the individual transactions to work out how much money UKOG has gained through issuing shares, you only need to look at shareholder funds on the balance sheet and exclude the money gained (or lost in UKOG's case) via the P&L.

If you are going to count up the individual transactions then you need to include the cases where UKOG has issued shares to pay for things like interests in HH-1 or drilling equipment.

For example the £6,175,000 issued for 22% of HH https://www.investegate.co.uk/announcement/rns/uk-oil-gas--ukog/completion-of-further-interest-in-hhdl/5376012

The bit you didn't read states they are "still assessing". Here is what the write-offs so far have looked like when they are forced to reassess due to being moved out of intangible assets, have well results or abandoned:

2018 BB-1 "unable to be used for production" £9.25m

2018 "Holmwood operator abandoned the site" £1.21m

2020 Horse Hill "impairment charge of £7.89 million"

2020 "HH-1 should be impaired by £9.35 million"

2021 "HH-1 should be impaired by £1.46 million"

2021 Isle of Wight write-off £946k

2022 "HH-1 should be impaired by £2.9 million"

The next sentence, as I’m sure you read, states:

“ At this point the Company is still assessing the potential of the remaining assets and will continue to develop and evaluate these assets in the coming year. Since their acquisition dates there has been no further material changes to the Licence areas. The directors therefore consider that no further impairment is required at 30 September 2023.”

i.e. we have done f all with these assets, so have no additional information, so leave their book value unchanged.

“Costs directly associated with an exploration well are capitalised as exploration and evaluation intangible assets until the drilling of the well is complete and the results have been evaluated”

A perennial reminder that the intangible assets figure in the balance sheet is not a valuation, just a record of how much UKOG has spent on assets that it hasn’t be able to monetise.

Shareholders funds from share sales increased by £95.3m between 2013 and 2023, add to that the £2.4m raised this FY, you get to around £97.7m.

In return shareholders have a company worth around £1m, so the actual figure is just shy of £100m.

Taking the difference in accumulated P/L loss ignores the fact that the £33m in intangibles is valued by the market at about zero.

Looks like Sumitomo isn’t too keen on being publicly associated with UKOG then, not surprising given UKOG’s track record of loosing over £100m.

I’m amazed that any non-AIM CEO would be fall for SS’s self-serving BS.

"To continue to cooperate with UKEn with a view to SEEL or Sumitomo investing in future hydrogen storage projects"

The point is that if they wanted to invest in the Portland scheme they would say so, but choose not to.

If there was any material news in the letter you can be sure UKOG would of released a RNS.

In the annual report UKOG said:

"Success in this, or even a subsequent second allocation round, would ..."

"UKEn has also identified further hydrogen storage sites, one in Dorset and one in East Yorkshire which we are also intending to pursue and secure Revenue Support for in future allocation rounds."

It looks like they are laying the ground to admitting that they aren't in a position to bid in this year's allocation round and that Dorset isn't a good location.

If they switch to Yorkshire then they are directly head to head against established players with much better financing, experience and links to local industry.

Seems like Summit is as desperate to find takers for its proposed hydrogen production as UKEn is to find a use for its proposed hydrogen storage facility.

Dorset doesn't seem a particularly attractive location for Summit though, comparing with other proposed facilities:

Bracton to Aldbrough Hydrogen Storage, Yorkshire 150kn

Bracton to Keuper Gas Storage Project, Cheshire 265km

Bracton to Portland 375km

There doesn't seem to be any near term plans for hydrogen pipelines over these sort of distances, causing both UKEn and Summit serious problems.

The early hydrogen storage projects will be located very near hydrogen production facilities, which rules out Dorset.

And even when RF/YA have been paid off UKOG is still burning at least £250k per month that needs funding from future share issues.

£370k of debt remaining and £1m marcap, so they still have to sell about 37% of marcap.

They ask for 6% each tranche, so only another 6 more tranches to go.

Recently there's been about two weeks between tranches, so looks like at least three more months of the SP falling.

How it started in June 2023:

"The facility provides the company with working capital at competitive terms to fully fund its planned key UK and Turkey activities over the coming year. The discharge/conversion terms are attractive in that they will be either at zero discount to the lowest daily VWAP in the 15-days prior to conversion, or at a premium of 35% to the Reference Price of the relevant drawdown, whichever is lower. This is in contrast to the likely heavy discount to the Company's share price associated with a more traditional share placing in today's financial climate."

How it ended up:

Prev close before RF/YA funding was 0.058 or 0.58 in new money.

Now issuing shares to repay the loan at 0.0241, i.e. at a 98.6% discount to the SP at the time the loan was arranged.

For the wisdom of these kind of decisions SS earns £338k a year.

Envoi haven't even added Loxley to its website yet:

https://envoi.co.uk/projects/active-projects/

The UK project that it does list has been there for two years with no takers.