Member Info for Genghis15

OK, so £1.68m raised, for "The cash raised from the Placing will be applied towards the additional working capital that is required on account of delays to cash flow caused mainly through the pause in production caused by the safety issue with the railway bridge issue announced on 7 September. This will include the costs of advancement of both decline development work to the lower levels to access higher grade ore and the costs of construction of the second production line in order to maintain the Company’s production schedule and cashflow forecast. This will also include increased personnel and contractor costs and the costs of the new steel railway bridge access point. The cash raised will also be applied to cover due diligence and legal costs associated with the progression of the debt finance."

c. £430k now gone on bonds. So do they need cash to cover that, or are they flying on a wing and a prayer that first sales come through in time?

Brocal
If UKOG can do a placing at par and keep it quiet, why can't UJO?

Why wld anybody here stick up 4 the CEO who has needlessly halved the SP?

As junus says, the buck stops at the top, thats what the 5 fig salary is for.

The weakness of AIM regs is a matter for shareholders to lament, NOT an excuse for CEOs to make careless placings, and a 3rd party leak sgould see a 3rd party punished, by at least a sacking,

Good to see a couple sensible posters here amonst the nonsense.

The ofload is crucial, if production has decreased already the it's goodnight, and Bernstein will have egg on his face.

Hopefully that's not the case, but if no tanker appears next week that will be worrisome.

"I'm sure David Bramhill was telling the truth when he said, and I think it was well before the recent placing, that we were fully funded for the 2020 programme "

So am I. But the fact is he made a statement he didn't need to make, which whilst strictly true looksa very much like it was intended to mislead.

In some ways that is all part of the game for junior oil CEOs. But to follow that up with a very significant raise, and then see it leaked in a way tha dragged the SP, and placing price, down almost 50%, is appalling.

There are many walks of life where this would be a career ending event.

Yes, we need to move on.
But no one should ever again believe a word the man utters, and all shareholders should be asking ; if a shower like UKOG can get a raise away at current SP without a leak, why couldn't we?

I sold most of my holding hoping to get back in at the placing price.

Will have to see how that works out, hopefully not too much scaling down.

All true, RNS T.

Nevertheless, I doubt they would want to chuck £5k on the fire, so imv they see a future here, rather than a quick winding down. Still, the previous BoD thought they has Billions of barrels....this lot may be no more to be relied on than they were.

Not v convincing, tho, paltry sums by director standards I would say.

Nevertheless, it may indicate they at least see a future for the company.

Why is it mug punters on here think they know more about corporate finance than a qualified FD?

Don't you think they would have bought the bonds by now if it made financial and strategic sense, or,? There may even be contractual impediments to doing so anyway.

Forget the CBs. The only thing that matters here is oil, well performance, and OWC.

"CA continuing to hoover up equity" from whom, I wonder?

Kerogen?

I was just pointing out that it is not a cash facility. It is an equity raise, and hence dilutive, rather than leverage, like borrowing.

Rubey
You refer to the £5m "cash facility" as if it were akin to a bank overdraft.

It is not. It is a fast track equity raising facility.

I believe Rathlin is fully funded for WN A and B, no problem there.

Where do you get £10m?

I saw a ye cash £5.4m, less £1.4m paid for WN stake increase, plus £250k AT, say £4.25m, less opex to date

That's fine unless they need to inject any into Coralian to progress projects, or have other plans we are unaware of.

And note the words on thec "discretionary cas facility", which despite the line "This discretionary cash facility was seen, by the Board, as a prudent measure to provide increased liquidity without the need to dilute shareholders unduly by way of an equity fundraise" does exactly that if drawn down, by issuing new shares to Acuitas.

It is a "discretionary equity line cash facility " meaning a fast route to new issuance, if used.

Fwiw, this was in the AR RNs on 11 June "We exited 2019 with a healthy cash balance of £6.7 million, which excludes cash already invested into Rathlin and Danube, which will be used to fund the planned drilling and testing campaigns in the UK and Romania in 2020. Reabold is therefore well funded through and beyond a very active and exciting year of activity in 2020. "

Altho in some ways reassuring, I have hesrd and seen similar statements b4. We shall see. And of course, they did not take the opportunity to reassure that today's RNS presented.

Deluded.

Projection is 12 to 14k bpd. And somewhere in the presentation all in costs at that level of prod were somewhere in the upper $30s. HUR is making very slim surpluses indeed at current PoO.

This placing, RNS 10 Sep

"it is intended that the proceeds of any such fundraising will principally be used to continue to fund the Company's flagship and other projects, and additional opportunities.

Further announcements will be made in due course."

Is that not clear?

Happy, it seems many here are unable to see the writing on the wall. There remains production uncertainty, even at 12 to 14k bpd, the WC could easily intrude into 6.

Even if it does not, HUR is simply not generating enough cash atm to repay bonds or finance further capex after allowing for decomm costs in escrow. Higher Poo could change that, but so could lower PoO. The fact that bonds are trading below par tells much. Remember bonds are above equity in the pecking order, and go figure.

Looked good to me too. Have nt seen the investor call this am but hopefully I can catch up later.

RNSTranslator
You should not assume i took DB at his word., i take responsibility for my own decisions.

The point is he misled ; he didn't need to. Didn't need to do the interview, didn't need to plug the "fully funded" line. He would have known all along he was planning a further placing, but encouraged investors to think not. I know that's the game om AIM. That does not make it right.

RNSTranslator
I know those words did not appear in the RNS.

But in many interviews that is the impression he happily gave.