The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
We've never been closer to production and people are moaning about 5% swings. Doesn't matter what the SP is today, it matters what it will be in 2-5 years time. You shouldn't be invested here if you lack confidence in the project and SS. I for one will continue to add each month and await the re-rate.
About 5 months profit of 3500bopd. It is an absolute snip if we can get the volumes expected from these horizontals. Might top up again early next week if we remain at this SP.
Well 600bopd would see us hit the 3500bopd limit with all wells operational. Would mean £65,000,000 in the first full production year 2021/22. I'm hopeful on 750bopd per well which should see us attain £400,000,000 over the lifetime of the 6 wells. £200,000,000 being profit to fully fund the newly named Isle of UKOG (formerly Isle of Wight).
Found a 'gusher' near Gatwick in 2016. Promised thousands of barrels a day. Got a world class oil man as CEO. Continuous oil resource license with billions of barrels waiting to gush. Didn't have controlling interest in the site so looked elsewhere. Had a 100% interest site. Share price booms. Didn't use ideal muds on first well and it only spurted out 100 odd bopd. No bother we'll do a sidetrack. Had issues there too, unlucky with the geology perhaps, maybe acidisation didn't help. Had some dilution to cover losses and back to drawing board. CEO decides original site (Horse Hill) has flowed so best to try and gain controlling interest. Buys out almost all the competition but this needs lots of dilution. Go from 2 billion in issue to 6 billion. Attain all relevant permissions for two horizontal wells while achieving 350bopd from vertical well (potentially choked). Believe you can comfortably obtain 3500bopd with 6 wells so go for full production. Here we are.
It doesn't sound as big as it is but this is a potential billion pound company if this program comes off and we find anything like what is expected on the Isle of Wight.
Volume is back and this will really help take the sting out of the 250million new shares issued. Work on first horizontal to start this month will see that strong volume continue.
They would likely wait for the first two horizontals to show decent flows. I'd rather be bought out at 10p thanks.
Once we clear the newly issued shares (i'm doing my part topping up) then there is nowhere else to go but up.
My take on the maximum 3500bopd is that obviously it will be a few months between each well becoming operational so to get this full program in place we will be looking at mid 2021. From here it allows individual wells to have their maintenance days staggered, allows for testing of chokes and maximal rates at different points, also management of depletion rates can mean that, yes, in theory we could balance at 3500bopd with no depletion of that figure for some time if the maximal rate exceeds what is in the permission.
As a taster 3500bopd would bring UKOG £65,000,000 a year.
Two huge obsticals cleared within hours of one another. We have permission for a 6 well production programme and get 85% of the income. Two wells could be in production of up to 1100bopd each by Christmas. I honestly didn't think we'd recover at some points after BB. I kept telling myself to top up and average down because SS would have learned lessons. We're back on the road again and I'll be spreading the word to all friends and family that they need to get in soon. GLA and on to the next step.
Boom
A wise old sage
He's been exposed as a local Cllr. Should open an investigation into him tbh.
He got death spiral finance in there. Will he mention UJO and Europa next?
A great jab at the little climate nazi
These swampies do realise that the earths plates are continuously moving? Europe will collide with Africa in 10-20 million years time. Suppose they'd blame that on oil exploration.
Woah! Magnitude 1.1 and 1.2 earthquakes. Not like they occur everyday (they do).
Here come the NIMBY's. Quite happy for the sea to be plunderedof oil and eat Fish n Chips. God forbid anyone puts a pipe or well near their McMansion.
Not so sure Joey. This is only a silver ticket day. Golden ticket day is in October when SS comes out of the site covered in oil and doing a jig prior to a BBC Worldwide interview where he announces he's taking all his options and runs back in to the site because oil is gushing 100ft in the air.
Angs has an mcap of 8m quid and is the definition of a 'short term play'. The pps bears no reference against UKOG and I'd advise caution against the long term prospects at Angs. It's been pumped and dumped more than Katie Price.
People can laugh but I remember the 0.8p to 11p train last time. Keenly aware of the dilution but this could be 5p by November.