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Joey,
Unfortunately with having so little information released for the last few months talking about the facts has hit a dead end.
We need;
1. Rig delivery date and drilling plan
2. A statement about what the £3.5m was for
With both of these things the de-rampers will be put back in their box a bit, there will be loads of hopefully positive stuff to talk about and the SP will start going in the right direction.
Until some decent info is released this silence is just harming the company and making any re-rate of the SP have that much further to go
They can't use the £3.5m for paying wages in the placing it has a stated purpose and to use it outside of this would open UKOG/BOD up to litigation and possibly fraud charges.
So no the £3.5m is not 20% gone already.
It is poor form that we have not been told what its for but I see 2 reasons for that;
1. They don't have a use for it yet, this would open up an argument for the sanity of a placing at this low level.
2. The contract negotiations for the intended asset are complex and would be privileged info until complete meaning no RNS until a final agreement is in place.
Obviously 2 is my preferred option. I know there was also talk of the £3.5m being used for BB but this is an existing asset and the placing stated new assets so that would be misleading also.
Have a listen to the interview SS contradicts himself over the flow rate from the horizontal well.
At one point he says they hope the well will produce 2 to 3 times the 220 bopd (so 440-660bopd) then later he talks about 700 to 1000bopd.
I think he needs to go do a GCSE maths night course.
Brocal / Andy,
The rig will need a wide load notice submitting so the swampies if they wanted could watch out for this and then would know the time and intended route of the rig so I think you are wrong on that score.
Personally I think the start date for the rig has been getting postponed by UKOG to help the planning permission go more smoothly by not drawing loads of negative attention to us. Unfortunately UKOG could not foresee SCC kicking the can down the road again and it's come back to bite us.
Its because UKOG have effectively been burning their bridges behind them with their dire approach to PR. Its a sentiment driven stock with PI investors and they need to have a 25 year old twitter junkie constantly pumping the company.
Its sad but imo true
I'm surprised that this part of the RNS has not had more attention;
"Further necessary logistic and administrative arrangements for the arrival of the drilling rig and associated services are scheduled to be finalised this week."
So thats the 3rd or 4th finalization but we now have a timeframe. That means another RNS either Friday or early next week and it should include the dates everyone is waiting for.....
Bladehater,
A constant seller for the last couple of weeks / months?
Anyone remember the £360k buy at the start of the year (Feb?)?
That would scan with some structured selling to drive the pride down but you would need to be looking at a £1m buy to make a plan like that worth it.
Oh and it's a bit too close to the tinfoil hat "they never landed on the moon" brigade for my liking but I did always wonder about that £360k buy......
Jason,
I do hope that £3.5m is NOT for Dunsfold.]
As a site already owned why raise the money from a very low placing to accelerate the planned works which could be self funded after the upcoming HH works. That would be financially foolish unless they don't think HH could fund it (I don't think thats the case).
The only thing that makes sense is a new acquisition, what that is I have no idea. If they use it to develop an existing asset, something that would be sailing dangerously close to having supplied false info in the RNS it would show one of 2 things
A: They are financially incompetent
B: They have no faith in HH
I don't think thats the case so we must be looking at something totally new.
Well that was a dire day last few buys showing at 0.93 - 0.94 never thought I'd see this price again given we're producing.
The way things are with news here I'm thinking that if SS tried to run a bath he'd drop the toaster in....
Penguins. Ok it's for drilling good spot I had missed that, but the same article goes on to say;
Within any industry, the P/E ratio is considered average when it is between 20 and 25, and as such, the oil and gas drilling sector falls in line with adequate P/E metrics. For investors seeking opportunities in value investing, the energy sector can provide opportunities within oil and gas drilling companies, but investors should be aware of relevant metrics, including the P/E ratio, before investing.
So according to the article most industries should be over 20 not 4
At least I tried to back it up with some actual news articles
https://www.investopedia.com/ask/answers/012015/what-average-pricetoearnings-ratio-oil-gas-drilling-sector.asp
Oil and Gas Drilling P/E Ratios
As of January 2015, the average P/E ratio for the oil and gas drilling sector is 25.4. The industry average includes the metrics of large-, mid- and small-cap companies including Canadian Energy Services (CEU) with a P/E ratio of 20.98, Hugoton Royalty Trust (HGT) with a P/E ratio of 7.54 and Pioneer Energy Services Corp (PES) with a P/E ratio of 38.84.
At 16 tankers a day (300 days a year with 50% to UKOG) using the average P/E above I make that 18.1 pence per share now wouldn't that be nice!
(Not sure if a P/E ratio of 25 is really realistic for UKOG lol but those are the numbers)
Look the 100k is neither here nor there for 2 reasons
1. All the time he can extend its effectively an interest free loan to him allowing him to use that capital elsewhere. Something everyone else would do also when thought about in those terms.
2. Say you earn 75k that's just over 1/4 of his salary, does that mean I could come to you for 25k without you having to cut back in other areas to remain comfortable with your liquid asset level?
The skin in the game would be nice and I have called for it myself in the past but the real marker will be if he let's options expire rather than take them, if he does that it's time to get out
Seadoc good point I was using a calculated profit for hhdl not ukog which would make a big difference and had not accounted for the down days.
Anyway now on train home time to read some pratchett and chill out a bit. All the best everyone and let's hope the rns for the rig turns up in the next 2 weeks