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Morning cinch,
Yep read the same rns, so in reply.
I did mention the sale of Maria and if the transaction goes ahead uog will receive $2.45m in April or May this year followed by an uplift payment which may occur this year and then 3 bonus payments, not sure when these might occur.
I've also provided links for shareholders to Jesmond capitals listing on tmx, their news contains a lot more information on the transaction.
Uog market cap at the moment is £7mor around $8.6m.
Don't think the cash balance has taken a hit because of the state of the Egyptian economy on its own but mainly due to production decline along with 3/4 wells drilled in 2022 not being commercially viable and costing around $1m apiece.
The average realised oil price per barrel from Egypt achieved was approx. $96/bbl so they got a good price in 2022 and Brent is currently around $88 so uog will get around $84.
As for Envoi don't think I said uog had ditched them only that Envoi hadn't been able to find a partner for Jamaica and that uog are now employing a second company based in the US to assist in that process. Is that a positive or negative in a way it's both.
Salary cuts, not a good sign although agree they were getting to much.
Tightening their belts in a way.
Well workovers seem to be going on forever but getting nowhere, delayed, operational issues seem to taking forever to solve, why is that?
If Jamaica does come off you are completely right the sp would be a lot higher.
Debt, nearly missed that.
As far as I know in 2023 uog will still have to pay bp 12 payments of $220k or around $2.64m.
I would like to know what the debt consists of and how they came to a figure of $1.5m, could you help answer that.
But they did reduce it by $4m in 2022 .
Your right I do post a lot on uog and have done for many years as a holder and non holder over those years but funnily enough never had to explain my posts so much when a holder.
I never always posted positively as a holder and like to call things as they are regardless of my position.
Hope I've been more balanced, but the scales seem to be uneven at the moment.
All my opinion.
Good luck.
What if Ash-8 isn't a duster
"1H 2023 production guidance from Abu Sennan is 700-900 bopd net. Note that this range comprises 100% oil production, as with the installation of pumps at the ASH Field and expected recompletions, the lower-value gas production in 1H 2023 is expected to be negligible. The upper end of the guidance includes risked contributions from the planned workovers and a pro-rated contribution from the recently spud ASH-8 development well, which is assumed will be brought onstream in May 2023"
So if Ash-8 isn't a duster H1 guidance is 700-900 bopd net.
Remember they only get 42.53% of the revenue from this.
Basically ignoring any blather from BL
Production declining rapidly, fact.
Cash balance gone from $3.8m+$1.0m+ revenue from egypt to cash balance of $1.4m, fact.
Do you realise exactly what that spells out.
The revenue from egypt isn't enough, they need to diversify but that might include a placing.
The production guidance already includes the Ash-8 well, what if it is a duster like the last few.
Got to be brave and face the facts not ignore them.
Hi rifteastafrica,
Looks like egypt is weighing heavily on United and only the proceeds from Maria might keep their heads above water for a bit longer, but not due till April !
Jamaica hopefully for you will come good but having employ another company to promote it in the US seems to indicate Envoi has been unable to find a suitor.
Best of luck.
Todays update imo is not good news for shareholders.
Production falling steadily and looking like it will continue to do so.
Guidance for 2023 of 700-900 bopd is terrible and even worse considering that it includes the Ash-8 which apparently has spudded, when? what drillng rig is being used,?why no rns?
Only drilling 2 wells this year now that just says to me that they don't have the funds to drill any more.
Jamaica seems like they are having to look farther afield.
Farm-out campaign for the Walton Morant licence, Jamaica, continues to accelerate with the appointment of Energy Advisors Group ("EAG"), a Houston-based M&A advisory group, targeting US companies and investment funds
That statement seems to indicate that Envoi hasn't had any success in finding a partner.
Seems like a big carrot just being dangled as long as possible.
Cash balance at end Dec 2022 of $1.4m now that really tells a story.
It looks like they did indeed receive the $1m from Hisbiscus before year end which makes the cash balance even worse.
End of June 2022 cash balance $3.8m add the $1m from Hisbiscus , $4.8m in cash.
End of dec 2022 cash balance $1.4m so on cash alone they lost $3.4m in 6 months or $566k a month.
At this rate they will be skint by the time they get any money from the Maria sale, not due till April, if it goes ahead.
Taking a pay cut and not replacing Tom Hickey, can imo assume it's because they are skint.
Share buyback now there's a joke.
Yes cash of $4m or above would be very positive but I expect it to be a lot lower.
Just my opinion of course.
As for cash from Maria rolling in it might be a good idea to keep checking
https://money.tmx.com/en/quote/JES.P
Just to check news of when the placing occurs to facilitate the transaction.
I think if they had received the last payment of $1m from Hisbiscus by the deadline date, end December, then it would have warranted an rns of it's own.
The fact it wasn't mentioned in the rns about Maria on 17th Jan leads me to believe they haven't received it yet.
They could certainly do with it.
Thursdays update will be interesting.
Wouldn't go as far as to say it's fantastic, but is good news and will provide much needed capital and better than a placing.
Very surprised by the references to initiating a share buyback programme.
If they do make sure that any shares bought back are cancelled and not held by the company to be reissued to themselves at a later date!
The sale is dependent on Quattro, a company with no assets or money being taken over by Jesmond Capiral a company with no assets or money and a mc of just $1/2m .
Jesmond are currently suspended (tmx jes.p) awaiting news which I assume is the takeover of Quattro and dependent on them doing a capital raise. Both company are basically shell companies.
Will keep an eye on Jesmond and expect a sedar filing from them today outlining todays news and their plans going forward.
Going to stay on the sidelines for now and await the Jan update as I still want to see how egyot fared in H2, and their plans for 2023.
Good luck to shareholders
Chinch
Assume that enquiry was for me.
At this time , no not a shareholder.
I have in the past had a large holding and might do so again.
I initially invested a few years ago and have bought and sold over the years and have posted here as a holder/non holder over those years.
Understand that you and others might be uncomfortable with a non holder posting here, but believe I'm not the only non holder that posts on this bb.
I will continue posting but will only give my honest opinion.
If your still uncomfortable with that you can always filter me.
But you might be OK with me posting as I believe it's better to have a balanced bb and I won't gloss over anything or similarly try and deramp but try and be as fair as possible.
I've always thought uog could be a very good company and still hope they will be.
I'm waiting on the Jan update before I make an investment decision.
Bit long winded reply but just wanted to be clear.
Thirdtimelucky1
Was thinking that now Rowe has dropped below 3% there won't be any more tr1's from him so won't need to worry if he sells more being made public, at least not for 6 months until list updates again.
But thought the cpr news today for Maria very underwhelming and imo something else out of the way. Think it odd that
"The independent audit further validates the work produced by our inhouse technical team,"
why more wasn't more made of it this statement and fear it might not be commercial which they seem to be at pains to say in a roundabout way.
All imo that's all.
Imo I think this rns is a bit underwhelming and not as positive as I expected.
Also think there won't be any more news about Maria for a while.
Thought the wording was not very positive.
This link might help, look at paragraph headed 'Contigent Resources', look familiar.
https://www.spe.org/en/industry/petroleum-resources-classification-system-definitions/
Noticed united have updated their Major Shareholders list today.
Not much difference from the list in Nov update except for the selling by Joshua Rowe.
Maybe signal and end to his selling but he doesn't have to tr1 anymore if he does.
Maybe path been cleared for news now.
Joshua Rowe has sold another 4m shares and dropped his holding to 2.7%.
Now that he has dropped below 3% he won't need to issue anymore Tr1's if he continues selling. Maybe uog might update the major shareholders list now as required by aim regs.
BritR
Good post and agree with a lot you say.
I believe they pay bp $220k a month so for 12 months it's $2.64m by my calcs which is a lot for of cash to find for starters.
Can't see the cash balance anywhere near $6m and think they will have had to use a lot of the money from divestment especially as the last few wells are money down the drain.
Rift, Greeno think you are clutching at straws.
Workovers and stimulation doesn't seem to be doing anything and all quiet on that front and no way they will add another 700 boepd to production!
Can they still fund new wells going forward, they rely on restocking production as they drill new wells to pay for the next well and that strategy has ground to a halt. So where is the money going to come from to fund new wells?
Update end of Jan is going to be interesting.
Maria, where's the cpr?
Hisbiscus, Where's the $1m?
Workovers, ash4, aj-14 what's happening?
2023 drill plan?
2022 FY production
2023 production guidance, best ignored.
M&A no cash for that have they.
Jamaica, maybe a pipe dream.
Will they need to raise capital, certainly think this is a possibility not only to fund 2023 drilling but also they need to stop reliance on egypt because it isn't going to plan and can't rely on new wells to support them.