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Rich the train has been leaving the platform for some months (though at 5mph) the problem is SS has been busy building more platform and doing it quicker than the train is moving.
Lets just hope the platform is straight or it could well derail the train...
What on Earth is going on today 1x buy and every other trade is a sell! never seen a day like it (and I don't think they are being mis-represented as trades are 1.11, 1.12 when the sell is 1.10).
He best hurry up with the announcement for where the cash is going or this is just going to keep dropping
Penguins, Ripleybogle,
If they want to expand in one of the Weald licences they already own a stake in it would go up with the share price on release of a CPR (a CPR that the other part owners would have inside knowledge of and price their share accordingly) but for another Weald licence that is not part of the CPR the price rise will not be the same.
If the CPR is great and the share price rises 500% because of it the licence down the road won't rise 500%, it may rise 50% or even 100% but not the same amount as the one being tested as that test would only be indicative for other licences in the area (at best). That being the case you would still be better off placing after the CPR not before and might not even need a placing because you could borrow the cash backed by the OIP which is something SS has spoken about in his interviews.
So they either;
A. Need to hoover up licences because they are crapping themselves that another firm is already sniffing around them. - Possible given that we have been pumping oil for months
B. Are trying to run before they can walk. - Likely
C. Have a bad CPR and need to do this before the share tanks. - To be fair I thinks thats a long shot.
D. Are sniffing glue (don't kick off I'm just trying to have a bit of fun with this one!)
In any case its hard to justify why you would do this at this time which is annoying as I hate to sound negative and really hope UKOG do well.
I will be sitting tight at the moment but will be awaiting the CPR and RNS telling us what they are buying to make my decisions on whether to get out or buy another load of shares.
Sageman the problem is that unless those acquisitions are linked to the ongoing HH work and therefore would go up in value themselves when the CPR is released doing a placing before the CPR (assuming its good) is stupid as the number of shares placed is inversely linked to the share price.
That said if the acquisitions are linked to the HH ongoing works surely the current owner is privy to the info in the CPR so knows what the value would be post CPR and would want that anyway.....
Still think its fishy but I am hoping to be proved wrong as I can't get out while £6k in the hole
Agree he is placing no value on what these actions do to the share price and that is disgraceful for a company director.
We have loads of licences already and the plan for the next couple of years only develops half of them so why rush into more acquisitions? Walk before you run and it becomes self funding with a construction workload that would keep a stable base of skilled workers. Don't try and hoover up everything at once making cashflow an issue as well as equipment and labor availability.
There will still be sites available in 2-3 years time. At the minute UKOG is a toddler just taking its first steps without a stroller you don't go from that to Usain Bolt overnight......
There is a big difference between looking at a stock and accepting a small (or large in some cases) risk that the performance of the company will reduce share price and what is happening here.
We have been repeatedly told that the 2019 and 2020 planned works are fully funded and only a week after the end of year books come out showing that we have £12m in the bank do we raise another £3.5m at the cost of the shareholder. What is truly galling is that this is always with no say from the shareholders and just dilutes their investment unnecessarily we need a large investor that will need to be consulted on choices like this but that kind of investor wouldn't touch this with a 10 foot pole.
SS is not looking good in my opinion as placings like this must have already been in the background when he was making statements about being fully funded and that's misleading at best a borderline fraud at worst (don't believe me just look at the BoD for Carillion).
I don't like to sound like a deramper and am normally a strong supported of UKOG (I hold 1m shares @1.56 before you start pointing fingers) but am getting really annoyed with these constant placings