Member Info for HeadInTheSand

Cuddo, nobody with an IQ larger than their shoesize believes for one second that you've "bought up ££££ hundreds of thousands of pounds worth of ANGS shares".

The clever money is firmly on your being a short-term day trader who's invested a couple of grand, hoping for a quick marginal gain, but who got his timing badly wrong and is now frantically looking for an exit, leaving some other gormless holding the parcel bomb.

Nobody but nobody with the dearth of intellect you continually exhibit is ever going to have access to ten grand, let alone a six figure number. But hey, keep trying.

...and how many years and how many millions of pounds will it take for UKOG to be able to establish even if Loxley can be coaxed into being a commercially viable gas field?

Seriously, you cheerleaders... I do realise that the latest UKOG damp squib fiasco at Basur-3 has left you with precious little left to spin, but I think any potential investor with an IQ bigger than their shoesize will be asking themselves the above painfully obvious question.

What is more amusingly noteworthy re the UKOG ramptastic cheerleading squad is their habit of very quickly having to change horses mid ramp race - solely because the ones they're given by Sando and the company to start off with collapse and die so rapidly.

Classic case in point - Basur-3. Less than three months ago, the multi ID rampers were squeaking the "transformational " Turkey fairytale with all their might and main. Text art rockets, endlessly copy n pasted links to Oceanmec and AME tweeted pix, "assurances" of imminent multi-bags etc etc...

...and then in traditional UKOG fashion, the truth comes out and the much flogged horse kicks the bucket.

So currently, all the cheerleaders are left with to spin is a resurrection of a very long in the tooth mount, the Horse Hill dribbler. Never mind that for years it has cost £2 for every £1 of oil squeezed out of this so-called jewel in the crown "asset"... this time it's gonna be different, honest!

Of course this entirely depends on permission being granted to reinject produced water AND said reinjected water increasing pressure, rather than doing nothing or worse still, just recontaminating.

What Sando and cronies desperately need is to come up with the basis for some fairytale that'll be considerably longer lasting... you know, one where it'd take a very long time to get shown up by reality to be yet another very expensive and commercially non-viable wild goose chase. Something like geothermal, for example. That could be spun for a good few years...

...

...hang on a second?

Snaith, putting words into another poster's mouth is really a little trite, no?

I did not "agree that if the HH2 conversion at Horsehill gets the go ahead to convert to a water injector well profits from oil sales will see a huge rise."

I stated that, IF permission is granted AND IF pumping water back in to Horse Hill does not adversely affect existing production or water contamination, then the cost of sale on UKOG's 100 bopd would indeed go down.

That's markedly different from what you were so unsurprisingly keen to pretend I'd said.

Snaith "Headinthesand

The cost of oil sales is high at Horsehill because of the high cost to tanker contaminated waste water away to be incinerated."

I agree. Which is precisely why I said that nobody but an idiot would want Holmwood and Markwells Wood to be "producers like Horsehill".

"These high costs will be non-existent if water injection is used to put the wastewater back into the well." Again I agree that just the water disposal element of said costs would be substantially reduced... IF such a thing is permitted and IF such a thing is viable without adversely affecting production.

No deramping here - just stating facts. But I have to comment that throughout its entire history to date UKOG has always been very fond of its "ifs" and "potentiallys" and "expected to be's"...

Snaith, if either site had been drilled and "turned out to be producers like Horsehill has", that would in fact be really bad news for UKOG.

Why? Because from looking at the very recently released HHDL FY accounts, roughly speaking, every £1 of revenue generated from oil extracted from HH seems to have a £2 cost of sale attached to it. And that's without taking into account any of the initial set-up capex costs required, which would run into seven figures per site.

So actually it would be far more correct to say that Holmwood and Markwells Wood would have had to turn out to be producers absolutely nothing like Horsehill demonstrably has.

On that basis, it is very easily arguable that UKOG and especially its long-suffering PIs dodged two bullets when permissions weren't granted on these two sites. ..

So clearly on a downward trajectory over time, then.

Ocelot, much like your post quoting an article describing a backlash against greener energy like geothermal the other day, you really do need to be careful with the scripts for your cheerleading, because a few things you've posted recently are entirely unwittingly negative.

So clearly on a downward trajectory over time, then.

Ocelot, much like your post quoting an article describing a backlash against greener energy like geothermal the other day, you really do need to be careful with the scripts for your cheerleading, or you'll be put on the naughty step.

Fantastic news! Now, just remind me, how many barrels of oil a day is ANGS producing? And what volume of gas?

I'll give you a clue to both answers - the company has been zero revenue for 14 months and counting...

DoneK "Again we go armed with previous operators' experience".

Well, let's look at that...

The most recent "previous operator with experience" was more than happy to pay ANGS £2.5 million to take the gas field and associated liabilities (abandonment costs, anyone?) off its hands. That's an indisputable fact long in the public domain.

One therefore wonders why their estimation of the gas field's potential (based on their experience) was so hugely different to ANGs's estimation (with their entire lack of experience)?

A backlash against Co verting to greener fuels, eh?

Careful what you say, Ocebot, or you'll ruin Sando's chances of bigging up geothermal in an effort to raise more jam tomorrow cash. I mean, it has to be on the cards, doesn't it? Now Basur-3 is going nowhere for months, Steve needs a new fairytale to spin in an effort to keep the directors' trough filled - and it's bound to be geothermal.

I suspect you'll get told off severely tomorrow...

Now... if only ANGS wasn't at least 13 months late (and counting) in getting to first gas, it might actually have had some to sell this winter.

I find it mildly surprising that UKOG PIs would not know how to spell the name of UKOG's only producing "asset".

Not that Horse Hill can really be described as an asset anyway, since what it can be coaxed into producing doesn't get near covering the costs of producing it. Looking at the last FY reports from both UKOG and HHDL, it seems that to produce and sell every £1 of Horse Hill oil costs around £2 to do so...

...which doesn't seem to be a particularly appealing business model to me?

To return (briefly, no doubt) to reality and facts...

An extra and entirely unexpected £12m had to be borrowed by ANGS at usurious rates to try to get that old onshore gas field connected.

ANGS's project to connect that old onshore gas field is currently running 13 months late (and counting).

The last reported OGA figures from when that old onshore gas field was last producing show production volumes that won't generate enough revenue to cover ANGS's costs - and especially their debt funding costs, even at current future gas pricing (but see below for capped price info).

In view of the above, ANGS is embarking on drilling a sidetrack in an effort to increase production volumes. The only issue there is that the well it is sidetracking from has already had multiple unsuccessful sidetracks drilled from it.

The high future gas prices are pretty much irrelevant since a) ANGS still hasn't got to production and b) ANGS has committed to a hedge agreement that caps the sale price of the significant majority of any gas it does actually manage to produce at 43p a therm (roughly 25% of future gas prices) for three years.

The previous owner/operator of the old onshore gas field was happy to pay ANGS £2.5 million to take it and its associated liabilities (abandonment costs, anyone?) off its hands.

All the above are facts in the public record and as such very easily verifiable. Now try polishing that little lot.

Aimofhtegame "Remember this went from 0.18 to 0.24 pre placing that's over 30% move in a few days. "

Yes it did. And the oh so obviously orchestrated ramping going on here in the last week of June was unbelievable (even text art rocket ships being continually posted, as I remember).

But surely you realise what was being orchestrated at that point? Let me explain it simply and in order:-

1. On or around June 20th, the city boys had committed to taking a substantial numbers of shares in the institutional placing.

2. A multi-party ramp was then organised to give them a rising price into which to forward sell the shares they'd committed to taking. From memory the price got ramped up to as high as 0.23p or thereabouts.

3. The city boys duly sold forward to anyone suckered into believing the ramp, trousering a very quick and easy nailed-on c. 20% profit for doing next to nothing over a very short period.

4. On July 5th, the successful institutional placing was announced at 0.18p. The price instantly crashed down to below that. The city boys didn't care - they handed over their committed to funding, having already made 20% or more as per above.

5. Then the availability of the "open offer" was announced, which was as laughable as it was contemptuous. Mere PIs were offered the chance to participate in a placing "at the same terms as the institutions. Same price, maybe (0.18) but without the benefit of a pump n dump being organised to sell into. Plus of course, by now, UKOG shares were considerably cheaper on the open market than the placing price offered.

So sorry, but the carefully concerted shenanigans organised at the end of June is an indication of precisely nothing at all... except PIs get shafted while those in the know get easy money.

I actually can't see why a Loxley decision to uphold UKOG's appeal can be considered as a positive?

I mean, the general school of thought is that the appeal will be upheld, so the market will have presumably priced this in. But what would a successful appeal actually mean for UKOG in cold, hard terms?

Sure, for the board and the ramptastic squad, it'd provide yet another vehicle for can-kicking "Jam tomorrow! This time!! Honest!!!" fairytales... but surely actually all it would involve the company in is needing to raise yet more considerable funding tu be able to evaluate whether this latest "asset" is also a busted flush or not?

So, apart from keeping Sando and cronies in eye-wateringly large monthly salaries for a while longer - that's if they can find any more any gormless PI mugs left who can be led to believe in this latest wild goose chase - what's the upside?

Oh any by the way, in terms of confidence in UKOG and its executive dream team... remind me, someone. How many shares have the directors bought so far, now that the director share purchase scheme (announced via RNS at the end of May) has been in place for over three months and counting?

Ibug, that's a very good point actually.

If UKOG's share of the revenues at HH are 85%, that'd be around £638k of revenue, Similarly if their share of the direct costs of sale resulting from of HH are also 85% (and why wouldn't they be?) then their costs would be around £1,619k.

So from that back of a fag packet calculation, looking at UKOG's annual report, there's £270k of extra revenue from other sources (possible)... but then also a **negative** cost of sale somewhere else to the tune of at least £448k?

I can't make that last make much sense at all...

A teensy question... how is UKOG expecting to fund these various commitments to drill?

(And please, I really hope nobody tells me "out of revenues earned from Basur-3"...)

You can't sell gas in the ground...

Anyone else notice how Mr. Multi-ID Cuddo can all of a sudden use long words, spell them correctly and also correctly use an apostrophe? Entirely unlike the majority of his previous posts?

It's almost as if he's two different people all of a sudden... gee, whoda thunk?

AS has been quite correctly pointed out, the refinery near to Poundland closed down years ago... so if ANGS had been doing its research, why did they not address this seemingly very obvious problem with a revised EA submission many, many months ago?

This looks like it was yet another unexpected and unpleasant surprise for the executive board... an inability to organise a knees-up in a brewery is the phrase that yet again comes to mind.