Member Info for GreyPanther

Hi Mirasol. According to Egdon's July 2020 annual report, their major shareholder is Petrichor Holdings who still seem to hold a whopping 33.99% of the shares. I dimly recall that Petrichor's shareholders are mainly long-standing American associates of Egdon's, including George Yates, who hold (or once held) some onshore UK licences in common with Egdon. Due to a "City whitewash" ruling, Petrichor aren't obliged to bid for Egdon, even though they still own more than 30%. The Premier (now Harbour) shareholding was 15.08% but it didn't come via Alkane. It was obtained when Premier acquired EnCore, who had previously swapped their onshore UK licences (plus their offshore Ceres interest) for a large % holding of Egdon's shares. Not that it now makes much difference since, as you say, there is still very little Egdon liquidity.

I assume the logging will come first, as indicated by Rathlin / Reabold a while ago. I would still like to know for certain whether they now received ALL the required consents for both the A-2 and B-1Z EWTs, or are we being held up by the EA? I've heard that the latter are notoriously slow issuing consents these days, maybe due to a lack of staff with O&G experience.

Hi Jamesp21. Why not look for yourself and perhaps do some research. All of UJO's annual reports and RNS are available on-line on their website. And you can even look at all their RNSs here if you click on the "Live RNS" link above. Good luck, anyway.

Well spotted Heid, and thanks very much for posting that link to a lot of really interesting info.

Thanks brezhnef. There were some interesting pictures on Drill or Drop today yesterday too. How do we know this equipment, which looks like a crane, is to be used for the proppant squeeze? According to Drill or Drop, the EA and OGA haven't given their consent yet. Mind you, I guess they could be wrong about this, as they have been about so many other matters relating to the onshore O&G industry.

It's amusing - to me anyway - that we haven't had nearly as much moaning about the share consolidation now that it has happened. I have to say that our share price since then hasn't been typical of post-consolidation performances elsewhere. So, to my mind, it shows Bramhill's wisdom in having a positive RNS to follow it up. Maybe we can now expect further positive news on various fronts.

I've previously invested in a royalty (the former LASMO oil production stock, or OPS, on the Ninian oil field in the North Sea) and it did me proud for many years. I understand that UJO's 2.5% royalty relates only to a 20% licence interest in the three relevant fields, and there were several 20% licence holders in these fields many years ago. There will certainly be a number of other royalties held by others amounting to 97.5% of the 20% interest, so it must be some of these that UJO is talking about. For clarity - I hope - UJO's royalty represents 2.5% x 20% (or 0.5%) of the income from the Piper, Claymore and Scapa fields combined. The oil price is going in the right direction for the feilds' life to be extended if we are lucky.

This royalty purchase looks like a very sweet deal to me. It's fairly small but it probably won't be the last of this kind. It's also very sensitive to a rising oil price. DreamOn was suggesting earlier that it could be classed as a related party transaction because of the over-lapping CPR / UJO directorships by Godson. According to Companies House, though, the last time Godson was a director of Cambridge was in October 2012, so he is not currently a director of both companies. Again according to Companies House, he has been the Company Secretary of Cambridge since July 2008. This may explain how the deal came to UJO's notice. The market certainly seems to like the deal too.

I particularly liked the words in today's Biscathorpe RNS where it said, regarding the planning application, ".... in a success case, the long-term production of hydrocarbons at the Biscathorpe -2 wellsite". If they are asking the local council to consider this too, IMO it sounds very much like a vote of technical confidence. All we need now is for Lincolnshire CC to get moving and deal with the application on a timely basis. We should also remember that Lincs CC is familiar with oil operations and it's a much different council to North Lincs CC which caused so much delay at Wressle.

Regarding the possible development of Corallian's Victory discovery, it's also worth looking at:
www.erce.energy/graph/uk-natural-gas-nbp-spot-price
This shows the NBP (National Balancing Point) spot price. It's probably quite close to what some buyers have paid for gas on a particular day when they needed a "top up". The spot price varies each year between about 75p per therm in winter and about 25p per therm in summer. So, to my way of thinking, a 50p price might not be a bad place to start, although I recognise that a lot of UK gas is sold under long term contracts, which are probably based to some degree on the futures curve.

Hi Manwithplan. I'm not "on drugs", as you rather unkindly put it, but I'm fairly sure that a separator will have been part of the FDP (field development plan) for Wressle. It's most likely working by now. Also, we were told back in 2015 that the Ashover produced oil and a little gas on test, but no water at that time. This is the only Wressle reservoir that's currently producing, so I'm assuming, based on what little we know, that the well has cleaned up and is still producing dry oil. Do you have any further info that says otherwise, or just a "gut feeling" based on your experience elsewhere? IMO they won't want to waste money tankering a limited amount of water away if they can possibly avoid it.

Thanks AJamesW. I estimate that a 38,000 litre oil tanker could contain about 239 barrels (by dividing 38,000 by 159 litres to a barrel and assuming it's full). So I'm wondering how many tankers per day or per week the tanker spotters have counted so far. Perhaps they could reassure those of us who aren't camping on the roadside at Wressle.

I've been on the receiving end of numerous share consolidations over the years. Some have worked out quite well, and some have not. In my experience the success (or otherwise) of Union Jack's current exercise will depend on their post-consolidation news flow. UJO seem to have plenty of news to come in the near future, and on several different assets, so I'm OK with it personally. If you are worrying about missing out because your shares not exactly divisible by 200, the most you can lose immediately is 0.16p / 0.17p, multiplied by 199, or about 33p. Maybe, rather than voting for 'A' or 'B', we should be having a flutter on the SP one week and one month after the consolidation, assuming it goes ahead. Good luck to them, I say.

I don't think so, not this time. There have been quite a few fairlylarge transactions in the last few days, not that long before this morning's RNS, which were recorded as buys. I therefore, and perhaps foolishly, assume they were mostly just that. So IMO this morning's RNS wasn't leaked. If it had been, wouldn't we have seen price movements previously as big as today's 5% fall? And, for the record, I think today's fall is wildly overdone if it's only about the proposed consolidation.

Hi Gwynwin. Your summary (timed at 11.36) isn't quite right about the results of the 2015 well testing. If you read the relevant RNSs carefully you will find that there is only one Wressle well (Wressle-1). It tested hydrocarbons from three reservoirs at a combined rate of just over 700 boepd (barrels of oil equivalent)and about half of that was gas. Of those three reservoirs, only the Ashover Grit is currently producing. We haven't been told the rate yet, but it's apparently producing without any need to be pumped. In 2105 the Ashover produced at about 80 bpd on test, but there was considerable reservoir damage. This is what the current test production and the planned proppant squeeze are hoping to remedy.

Hi Mirasol and RNST. Thank you for all that. I agree that any form of benchmarking can be very useful but, at the risk of causing strife on this board, I'm concerned that we may be comparing apples and pears ..... and for rather obvious reasons.

Mirasol. Thanks for pointing out the recent IGas CPR. It's very interesting in places, but IGas don't apparently share any producing interests with UJO, so I'm keen to know what you found particularly useful. DG & McN's oil price forecast on p. 31 has been slightly overtaken by events, but it's not too bad when one considers that the report had an effective date of 31 Dec '20.

Hi RNST. I now vaguely recall a posting here a while ago, or maybe on a partner's LSE board, that the proppant squeeze plan was submitted to the Environment Agency in draft form some time ago. I understand that usually some EA questions will follow, and then Egdon's replies to them will be considered before consent is ultimately granted (or not). So it may not be too long before we know the score.

Mittenator. There was a posting here a while ago, or maybe on a partner's LSE board, that the proppant squeeze plan (HFP) was submitted to the Environment Agency in draft form some time ago. Usually some questions will follow, and then Egdon's replies to them will be considered before consent is ultimately granted (or not) , so it mightn't be quite as long as two months before we know the score.

Hi RNST. That certainly makes sense to me, so now I'm wondering when the proppant squeeze will happen. I suppose Egdon may still be waiting on the EA and OGA, even though they have received North Lincs Council's consent to do it.