Member Info for deltavegatheta

Look at the cash position and burn rate. Companies fail when they run out of cash. UKOG has run out of cash and the low SP makes raising new funds extremely challenging and even if did succeed would wipe out existing shareholders.

52 Week Low 0.0325

52 Week Low Date 16-Apr-2024

52 Week Low 0.0375

52 Week Low Date 16-Apr-2024

AGM is overdue (which is a criminal offence).

Sando clearly afraid to face the share holders.

They get their money from shareholders not sales, so trying to pump the SP is UKOG's top priority.

Expect some ridiculous announcement about Portland and it's £1b risk free opportunity prior to a major fund raise. They will then spent the money on directors salaries before announcing that they aren't in a position to bid for this year's hydrogen storage round, but they will aim to bid in the next round and then not even do that as no-one is interested in the project.

UKOG still owe RF/YA about £500k which is now nearly a third of marcap. It doesn’t look to be sustainable to keep on buying and selling 6% of marcap shares for either party.

I wouldn’t be surprised if a deal was done where UKOG pays them off for say £350k. It would of course have to be part of a larger multi-million fund raising which I suspect is coming as UKOG currently can’t afford to peruse any of its dreams.

That was just a General Meeting not the AGM

From https://www.legislation.gov.uk/ukpga/2006/46/section/336

"Every public company must hold a general meeting as its annual general meeting in each period of 6 months beginning with the day following its accounting reference date (in addition to any other meetings held during that period)."

"If a company fails to comply with subsection (1) an offence is committed by every officer of the company who is in default."

The accounting reference date was Sept 30th 2023, so it should of be held by end of March.

From the AoA:

Each Director shall retire from office and shall be eligible for reappointment at the third annual general meeting after the general meeting at which he was appointed

Also SS will be up for re-election at next years AGM

UK Energy Storage Ltd was formed on 16 May 2022, then a year later, on 19 May 2023, UKEn Holding Limited was formed.

The interesting thing is that while UK Energy Storage Ltd is 100% owned by UKOG, UKEn Holding Limited is 100% owned by SS.

https://find-and-update.company-information.service.gov.uk/company/14880485/persons-with-significant-control

The SIC code for UK Energy Storage Ltd is 06100 Extraction of crude petroleum (guess there isn't one for gas storage)

The SIC code for UKEn Holding Limited is 64209 Activities of other holding companies

So it looks like SS has a company already set up to hold UKEn under his exclusive control.

Maybe the plan is for UKOG to sell UKEn to SS then they go their separate ways, with UKOG going back to concentrating on Oil and Gas exploration (badly).

Of course SS's next move would be to start trying to find investors foolish enough to put money into his new company.

Ocelot,

You better buy loads quick then before all the directors start buying all the shares as the upside is so amazing!

The auditors have warned you in black and white, if you choose to ignore their warning then you have yourself to blame.

Look back at older annual reports for numerous examples of large impairment charges being taken after assets have moved out of intangibles:

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

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

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

If UKOG really was 95% undervalued someone would of snapped it up months ago. Instead the SP continues to go down further.

There's a note from the auditor that explains the situation:

"The group accounts for exploration and evaluation (E&E) costs in accordance with the requirements of IFRS 6 – Exploration for and evaluation of mineral resources. Costs such as exploration licences, leasehold land and property acquisition costs and costs directly associated with exploration activities are capitalised as exploration and evaluation intangible assets. There is a risk that the exploration and evaluation assets are incorrectly valued or need to be impaired.

If no future activity is planned, the licence has been relinquished or has expired, or where development is likely to proceed but there are indications that the E&E asset costs are unlikely to be recovered in full, the carrying value may be impaired and require being written off to the income statement."

"Exploration licence and leasehold land and property acquisition costs are capitalised in intangible assets."

"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"

Intangible assets are just a tally of money spent, they don't reflect any market value of the asset.

Once an asset goes into production it is moved to Oil & Gas Properties which have a more rigorous valuation and results in a large impairment charge.

There are 10s of million of future accounting losses currently hiding in Intangible assets.

The GM allowed £1,627 nominal which is 1,627,000,000 shares

1,627,000,000 - 206,965,282 = 1,420,034,718

Currently UKOG has authority left to issue 1,420,034,718 shares.

RP/YA will want to ask for tranches of shares every month or so, probably around 6% of total outstanding like last time so that they each stay below the 3% reporting threshold.

That will of course put continued additional downward pressure on the SP.

But UKOG needs to raise cash of it's own as it only has about 4 months cash left.

New money from RP is definitely closed and I suspect YA has had enough as well. Last time UKOG used CMC at a 20% discount as did Alba recently.

But how much and at what discount? Alba had to offer a 30% discount to raise just 6% of marcap.

Currently at a 30% discount the most UKOG could raise is around £570k, which barely gives them a couple of months opex.

No-one is going to farm-in to Loxley without better test data which will cost a few million

BB restoration could cost a £1m

Hopes of HH farm-in seem to be dead given PPP's current markcap of £575k

Progressing Portland planning will cost a few million and UKOG need to appear financially solvent in order to attract needed partners.

So I think the next (or one after next) fund raising is going to be for several million, at a very heavy discount. Here's a raising through CMC at a 65% discount:

https://www.cmcmarkets.com/en-gb/capx/deal.html?id=3sV9AbBjnVGzvvJ7P72swH&symbol=LSE:MXC

The raising might happen as part of a rebranding of UKOG (maybe as UK Oil & Hydrogen Feedstock ;-)) or even splitting the company in two with UK Energy Storage being spun out.

For existing shareholders it will mean wipe-out. Getting it through the AGM will be brutal.

"Iceland is already a long way down that road, moving towards a Hydrogen fuelled vehicle society using their abundance of geothermal power."

50.1% of car sales in Iceland last year were EVs, hydrogen sales are too small to register, see

https://www.acea.auto/pc-registrations/new-car-registrations-13-9-in-2023-battery-electric-14-6-market-share/

Global sales of hydrogen cars fell by 30% last year, see:

https://www.hydrogeninsight.com/transport/global-sales-of-hydrogen-vehicles-fell-by-more-than-30-last-year-with-china-becoming-world-s-largest-market/2-1-1599764

The biggest problem with the Portland scheme is that there is no requirement to store hydrogen on the south coast. There's no producers of low-carbon hydrogen and no large scale consumers.

There is Fawley but they produce for their own consumption and have no need to for salt caverns.

The HHDL accounts have £360k for HH decommissioning, which is extremely optimistic.

But talk is cheap (apart from SS's salary) and that's all they seem to be doing these days.