Member Info for Mirasol

"Could you explain to an idiot like me at what stage in the work over process that the charges are used? "

Perforating guns - a long tube with a lot of small (or large) explosive charges which is lowered into the well and fired off to blow holes through the casing, any concrete and into the rocks

google it for some good images

To some extent this is the 3 card trick - the money , assets, loans etc in HHDL and UKOG are pretty much interchangeable depending on who does the accounts and make little difference to the share price.

Page 21 shows how much costs exceed sales (which is not unusual in an EWT)

What we lack is a CPR, an explanation of what exactly happened at HH2z and production guidance for 2021/22

It would be too much to hope for a strategic plan from UKOG I guess

The Horse Hill-2z (HH-2z) well was drilled and completed between September and November 2019. During well clean-up, formation water was produced to surface. A water-shut-off intervention was then completed. HH-2z well testing resumed via a combination of flow periods, with downhole pumping via a bespoke electric submersible pump, and pressure build-ups (PBUs) to assess oil volumes connected to the well.
Following initial high oil rates, HH-2z oil rates declined with continuing formation water production. The well is currently shut-in for a long-term PBU test. A number of options are being reviewed for the future use of HH-2z, including stimulation to return it into long-term production, sidetracking the well to a different subsurface location and possibly converting it into a future water re-injection well to implement pressure support and further reduce future operating costs (as foreseen in the Horse Hill FDP). The Company has also sought an extension to the current test permission In order to ensure that sufficient data is available to enable the correct decisions to be made.
In March 2020, the Oil and Gas Authority (OGA) awarded consent to the Field Development Plan (FDP) and permission to produce.
Post-period, the Company also plans a significant intervention in HH-1 specifically designed to further improve flow into the wellbore. Together with a full reperforation of the entire Portland section using a different type of perforating gun than prior operations, a new, simpler production tubing completion will be installed. The new completion will permit the downhole pump to be installed below the Portland interval to significantly improve pump efficiency.

Cinders

One thing to watch out for is that the treatment of tax losses in UK oil and gas is different i believe to most other industries

Loses and gains are ring fenced to the assets in some degree specifically to avoid companies shifting losses around to other parts of the business

O&G tax is a VERY specialised field with only a couple of really top rate outfits who you go to - and the OTO (Offshore Taxation Office - which handles all O&G) is apparently staffed by some of the sharpest people in HMRC

nomlungu - I wasn't disagreeing with you but I've been involved a few times in the this sort of idea - the problem is that (if you agree with Ocelot) they losses are £ 23mm - now you'd have to have access to the books to be able to se how much of this UKOG could use if Turkey comes in or if it has to be used in the UK , or worse only Onshore UK or worst of all on the actual loss making asset at some point in the future.

If someone could use the loses then they aren't going to pay £ 23 mm for them - they might buy the company for £ 1mm at some point but those losses are, right now, of no value to UKOG and no value to us the LTH's

Nomlungu - to use those loses you actually have to produce something somewhere that MAKES money - here someone would have to buy the company to be able to use the losses - so how much would they pay? Not a lot...... fin a fire sale maybe a few bob........

"over 35 years of relevant experience in the oil industry, Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists."

All the qualifications in the world don't help if the geology and the strategy are against you. Look at Dr Trice over at Hurricane - or many, many other well educated, highly experienced, hard working oil types who have been involved with companies that have gone under or performed really badly. Think of Celtique, Europa, Infrastrata, Solo etc etc etc in just the last few years

"ow many people earn 150k+ in the UK "

In 2019 about 355,000 but few of them also paid themselves a bloody great bonus for crashing the stock and drilling 2 dud wells

He's also appeared on ANgus.........................

Welcome Prof Oil - this weeks first new ramper I thing - just started but post count stuck at one... sound familiar guys??

We should run a sweep as to hen he starts telling us how to behave and that we're all XR masked trolls- normally Wednesday

He hasn't been right for quite a while -- he started to hero worship SS, then got obsessive about HH and then changed his views completely.

IMHO he should get out of social media and maybe get out of day trading as well - it's clearly not good for him

I suspect Lucan, who thinks a bit more outside the box than UKOG, realised that he could never raise £ 12 mm from Wonga loans etc. He has to get individuals or banks to come in -but the bigger banks just aren't interested in lending such small amounts as the absolute return in cash is too low. Lucan is almost certainly trawling his contact book for the smaller outfits - some may come in but no-one will lend the £ 12 mm on their own - too risky.

So he has to juggle several outfits all of whom will have a different view on what they want but for sure don't want a worse deal than anyone else - so that means he finishes up paying whatever the highest price is for the lot.

Something similar happened in Norway in 2013/15 when a lot of small outfits went down this financing route - they finished up paying very high rates and it all went pear shaped quite quickly with a fire sale of the assets.

The question is here who would buy them?

There is nothing wrong with companies farming out acreage - for people like Egdon its their core business model

On the positive side it's almost impossible to farm a clear dog. On the negative side you're increasing your risked exposure. I was rather surprised at the terms UKOG have agreed to - it's a two for one when the oil price is in the gutter and there seems to be no provision to add in other acreage if they have a success - I'd have thought something like a 1.25:1 and an option on other acreage would be a fairer deal right now. But then someone was desperate................... and it wasn't the Turks

"Any truth in the rumour that Turkey is now 90% certain expected to produce at 10,000 bopd with 150 million barrels recoverable? Total production costs no more than $8 per barrel?"

No

"I believe this is being dragged down by the oil price and oil majors"

they hardly produce anything so the oil price has little effect - and the majors? 99.99% of people there have never heard of ANGS and the ones that have heard of them wish they hadn't

Ibug - I also agree Adrian isn't doing himself or anyone else any good by this repetitive posting - he made his point about 6 hours ago and since its just been getting tedious - he's mainly right but ..................

Ibug - I'm afraid he's right - a Judge has decided that it needs review - after all lawyers need every penny they can make

https://drillordrop.com/2020/07/17/campaigner-wins-right-to-challenge-council-at-appeal-court-over-climate-impact-of-oil-plans/

Thanks - I think he's in JTPs' pocket but he does try - can you imagine UKOG answering ANY questions form shareholders every month?

FFS I'm on your side - more or less................ I think you did a great job tracking activity on site - without it we'd have knwon nothiong

I also heard they'd treat you pretty badly

As for "Although I've herd ukog want to turn HH into a small unmanned well. Just tankers pulled and taking what little oil that flows. Thats the plan. " I think you could very well be right - a lot of small fields are run that way - of course it won't happen until they have something else to promote - Turkey, IoW, the moon..... and then it it'll be "prudent management" to cut costs

" Some sort of vendetta?"

It's a long story - like a lot of other one time fans he feels (reasonably) he's been betrayed