The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Note Lenin.. I've answered your specific question on West Newton and the spike. You also need to have a look at Wressle which has planning in place to move to production in Oct producing 500 boopd constrained.. but capable oh 710 to 1000we also bought more Wressle and have a large holding which makes us more than profitable.
We hit bad news on Biscathorpe where we missed the mark on a drill due to alluvium deposits skewing the 3d sesimic. UJO got the samples retested and it still remains one of the UK’s largest onshore un-appraised conventional hydrocarbon licences. We also increased our percentage
Our portfolio has grown from strength to strength, fully funded and Cash in the bank..
https://www.share-talk.com/union-jack-oil-plc-ujo-l-further-interest-acquired-in-pedl-253-biscathorpe/#gs.au4c5j
Gla Mix
Well welcome Lenin.
In short, coming up to August we drilled what is potentially one of the biggest O&G finds in 40 years and it's onshore. We where expecting a good result but the problem was we got a brilliant result in that we found a 45m oil column in the Kirkham Abbey.. where we expected gas. To that effect we had to suspend EWT until we got approvals for a new EWT test to cover the oil. We did find more gas than expected and you can see that if you google volumetics
This is a quick an accurate read.
https://www.proactiveinvestors.co.uk/companies/news/901699/union-jack-oils-west-newton-now-seen-as-significant-oil-and-gas-discovery-901699.html
That being the case.. Some PI's sold and the price drifted downward until about 6 weeks ago when we started gaining traction and moving from 0.10p
The difference this time is Rathlin know what's in WN A2. We are trying to prove the extends in WN B which is in progress and will run in parallel as WN A2 EWT test. If WN B1 comes in.. Bingo.
We will continue to rise with the speculation that the extents are proven in which case we'll flip to a major..
Hope this helps.. Mix.. and jazuz do some research before investing lol ;-)
Ps check out Lee Bartholomew drop box. Loads of free research and a few snippets from moi
https://twitter.com/leedbartz/status/1248695810331742208?s=19
What we are trying to tap into.. Southern North Sea gas basin...
https://twitter.com/MightyBelle68/status/1280510317630554121?s=19
Well that certainly was interesting reading and some really good points and posts. Everything from RBD mcap to shorting a share on a claim north.
This will move north imho on anticipation of positive results from WN B spud. It's risk reward. WN B is the money shot proving the extents. If it comes in, we probably won't touch WN B2 but instead pursue discussions with majors for a flip. Again no one knows what's down WN B.. That's the gamble. I'm happy with the risk reward and with Wressle and Biscathorpe to offset the risk.
As always I encourage you all to research.
GLA Mix
No probs GKB.
Optimally for me, it makes sense to get West Newton B moving first and then moving it over to West Newton A2 for EWT. While EWT is happening the main drill in West Newton B can continue. This would enable resources/lighter equipment to move between sites as needed and bringing all operations to a quicker conclusion. But hey.. That's why I don't get caught up in operations. I'm invested in a company with more experts in mobilisation, financing and drilling, for them to work it out lol.
Right where's that 26.. I've done my bit at 24 today :-)
ALB Mix
GKB - as I mentioned on twitter some time ago.. I believe that the work over rig brought in to drill the first 80m will be then moved to West Newton A2 for EWT. Given the timings below, and getting the equipment in place and drilling the first 80m, I think we are looking at end of August for EWT start.
West Newton B - assuming cellar is completed and groudworks, including membrane tests
- Conductor drilling rig will be mobilised to site to drill a borehole to approximately 80m depth
- Conductor rig will be mobilised over a two to three-day period and remain onsite for approximately four weeks
- Casing and cementing of bore hold to the surface.
- Upon completion the rig will be demobilised.
- Main drilling rig will be mobilised to site. Constructed over approximately eight to 10 days.
In saying that, thats my guess but I'm not getting to hung up on EWT. They know from the extensive testing what is there. Its the extents that will give he insights as to how far and how deep and potentially best extraction points.
All imho... Mix
When a director increases his position yet again to take him close to 300 mil and no director sells.. this doesn't need ramping I guess. It speaks for itself.
Wressle pre works complete and we are moving into site configuration. West Newton cellars close to completion, and heavy equipment moving in. Spud is getting close. We moved into the 30's when we Spudded West Newton A2 and that was when we didnt know what we would find. Now we have so much data. Blown previous volumetric's away. Found an oil column. Didn't get to test fully test the Cadeby .. and now have EWT upcoming. There is not a lot holding this back.
You can rest assured that Reabold and UJO have a strategy and a game plan. The only part of the calculation thats missing is proving the extents. We'll know all there is to know come Oct/Nov and hopefully a flip wont be much further. Who's to know but its finally getting exciting again.
GLA Mix
Hi All.
Here is a link to some new photos of West Newton B from a good mate and solid LTHer - Roofers
https://twitter.com/MightyBelle68/status/1282824102764400640?s=20
Here is the thread on the timings that I put together way back. Looks like the cellar is getting ready for concreting and a slab so my forecast of a spud in July will be close but not far out.
https://twitter.com/MightyBelle68/status/1282822207534579713?s=20
Like I said last week on Twitter.. equipment was imminent and now we see it slowly but surely arriving.
All shaping it.. GLA.. Mix
ah flash backs you're giving me Spike. I need to go back over the projects to be honest as it seems a long time ago and indeed I do remeber Jolly. You could be right on the fracking as I didnt pay as much attention back then as I do now. Yes lessons learned for me to. DB has done great, not only getting a foot in the door on 3 cracking projects but also acquiring a higher % in Wressle and Bisc. Just to note that West Newton was 2 years in the making. He has a great network and is trusted in the industry which is what I like. No doubt I'm sure himself and Sachin are lining up the ducks for West Newton.
Chat soon Mix... now back to West Newton ;-)
lmao Mymine... I might still have an uncensored photo lying around. We should have more of that style of protest at the other sites, especially in winter lol ;-)
On a side note.. trying to top up today and order still not filled... killer
Hey Wiltshireman, lmao .. knock me down. That was a good find. Not sure if he was referring to NightHawk or Oil Quest which he was in previously. I do know what in NightHawk we used mainly Waterflooding which as an EOR, but isnt considered fracking as in Hydraluic Fracking. Others may think it is. Either way UJO arnt doing it.
We do have interests in 2 Shale licenses onshore that we got from our friends in Celtique but they are just for investment and if fracking took off again in the UK, I'm sure UJO would flip them. In May 2018 - we took a 16.25% interest in PEDL201 (“Widmerpool Gulf”)and a 12.5% interest in PEDL181(“Humber Basin”) for a cash consideration of £7,500
As per the RNS statement below on the Gov announcement on Fracking a while back, UJO has no intentions of ever pursuing that type of exploration.
http://unionjackoil.com/wp-content/uploads/2019/11/2019-11-04-UJO-Response-to-UK-Govt-Fracking-Moratorium-FINAL-CLEAN.pdf
Ah yes GreyPanther, I done ok in NightHawk but wasnt a Steve T fan at all. We got worked over and DB made the right call and learned from it. I do great in Wessex and would love to see that repeated here but that was a shot in the dark. This is way more calculated in terms of West Newton.
Right gotta go.. all the best Mix..
ps.. dam Wiltshireman.. got me there lmao ;-) all good.
From the RNS in case the link doesnt work --
Operations Unaffected Following Government Shale Gas Moratorium Union Jack Oil plc(AIM: UJO), a UK focused onshore conventional hydrocarbon production, development and exploration company,notes the announcement issued by the Department of Business, Energy and Industrial Strategy on behalf of the UK Government,on 2 November 2019,in respect of a shale gas moratorium.This statement will have no impact on Union Jack’s continuing and planned future production, development and exploration operations which are exclusively conventional.The Company has no intent to engage in hydraulic fracturing operations in England, neither now nor in the future.
hi JamesParnips. Wiltshireman actually mentioned the same the other day and I asked about him. Let me try and shine the light on it as I was in NightHawk pre-ipo and held a solid position.
Bramhill may have said he has vast experience in Shale exploration but I doubt you heard him say he was in Fracking as I've never heard him say it let alone take part in it. He was in loads of shale plays in Nighthawk with Steve Tedesco from Running Foxes, who I've met once or twice.
Long story short, they did NOT do Fracking as in Hydraulic fracturing. Instead drill sites like Buchanan and Worden projects used EOR (Enhanced Oil Recovery), namely Waterflooding, which involved typically a "five spot" formation with 4 injection wells around a recovery well. This form of EOR has been around since the 1920's and accounts for around 50% of US crude oil production and allows companies to squeeze another 30% to 40% from a site. When oil prices dropped, its wasn't feasible to extract oil this way but as oil prices rose, then there was benefits in the approach. EOR is not considered a form of Fracking as it relies on the natural fractures already present in the formations like sandstones.
If someone can get me a sound bite of Bramhill saying he was a fracter, I'll shut my mouth but he was and is very experienced in Shale oil. After Night Hawk, he turned his focus and interest back to conventional onshore exploration, namely in the UK where he is more hands on and can monitor operations closely, while building relationships with the partners. Such is the case today with Egdon, Rathlin, Reabold etc.
hope this helps.. Mix
Reference on EOR: https://www.cleanwateraction.org/sites/default/files/docs/publications/EOR%20Risk%20and%20Oversight%20Factsheet_0.pdf
Nighthawk update - https://www.rigzone.com/news/oil_gas/a/66810/nighthawks_waterflood_projects_bearing_fruit_xenia_project_underway/
Good post Mr Investment. I guess we just need to bear in mind that maybe Dave doesn't get that level of operational detail. Assuming membrane is down and tested, it's the cellar and conductor next so equipment should land next week. I did out a schedule a month or 2 back with the timings on it to forecast some dates. I'll update it and post it here. I had hoped for a spud in July which is still possible but tight.
All good. Mix
Hey Wiltshire an.. Greetings.. For the record I ain't here to **** anyone off. You'll find my research very much on point. You'll find others base their opinions of mine. I'm happy to share.
But I don't suffer fools and remember those that tried to screw UJO Over. Happy to remind people that's all.
In terms of DB.. You sure he fracced hundreds of wells in the US and what company was that with. I just can't remember him ever Fracking..
Thanks Mix
Let's agree to disagree Spike. I know how it flowed. I'm convinced there's more potential there.
So up next West Newton Cellar..
CELLAR CONSTRUCTION
The purpose of the drilling cellar is to house
the wellhead, which is the interface between
the casing and the blow out preventers during
drilling operations or the production tree
during subsequent production. The drilling
cellar also provides containment of any
drilling fluids which may discharge from the
drill pipe when making connections.
The drilling cellar is constructed using
pre-cast concrete rings, which are bonded
together with Tokstrip sealant, A 200mm
concrete surround and concrete base ensures
the integrity of the drilling cellar. A leak-off
test is carried out using water to cenfirm the
cellar has fluid retaining integrity.
The HDPE impermeable membrane is
attached to the outside of the drilling cellar
using fixing battens to provide a tight seal
around it.
Once in place we are ready to rock on that one.. I'll give an update on Biscathorpe later but moving forward.. However Wressle takes priority in terms of cash flow.
All the best Mix
Actually Mr Investment.. I apologise. I read a few more of your posts and they are to informed to be Gravey lol.. So honestly.. Apologies.
I'm all for debate and informed commentary as it makes me double check but I've no time for pumper and dumpers.
All good.. Take care.. Mix
Hey Spike.. You said..
"But you can't apply a P/E of 10 as its a depleting asset - at 200bopd, reserve life is just 4 years, even adding in resources its about 12 years. You don't get a P/E of 10 on a resource that only lasts 4 years certainly and 12 years definitely"
Dude seriously have you researched that asset at all. To call it depleting is a fools call. Read the RNS's. It's constrained at 500 boopd. It can do 1000 boopd. It did do 710 boopd equivalent. It has the Pennystone flags to complete an FDP.
We will drill more wells... So how can you call it depleting. Seriously dude.. Research this. Shard made the same mistake in their coverage initation.
Mr Investmen. You're not my numpty friend Gravey by any chance.. Mate of Chris oil that tried to screw UJO over and bagged the **** out of UJO. No offence meant but that dudes a numpty and no friend of UJO. Just asking.. ;-). You'll get no insights oh that numpty.. Just pump and dump
All the best Mix
Hey GreyPanther.. Always happy to share what research I have.. Only been here 8 years lmao ;-)
Yes what we are interested in, is tapping into. The Anglo Dutch basin in particular the southern north sea gas basin.
That's what has been feeding O&G companies in Europe so as our Pel extends that direction to the coast then that's the line to follow.
Here's a map in my tweet.
https://twitter.com/MightyBelle68/status/1280510317630554121?s=19
There's plenty of research done on this basin and heavy reading into the structures which ain't for me.
Needless to say, given the size of our PEL stretching to the coast, and the number of successful discoveries in that basin, we'd be extremely unlucky not to nail West Newton B, but that's the risks we take with exploration.
The flip side is if we nail it, you seriously think is worth just a few pence. Who knows ;-)
ATB mixster
Spike and Heid.. yes that's my interpretation. In terms of not getting too technical, I've put this together to show some insights on drilling WN B2 which I had to look at, as Lee B raised some good questions on it with me.
Just to note... its the Gas that makes this highly valuable and the volumetric on WN A2 blew that out of the water... so we are on to a great thing. Oil as another poster pointed out is a bonus so lets not get hung up on finding oil. I'm happy to find a **** load of gas ;-)
In 2013 Rathlin Energy drilled the West Newton 1 well to a total depth of 3.150m into the Dinartian Carbonate section of the Carboniferous. West Newton B1 well, Rathlin Energy recognizes up to three potential reservoir target horizons. These Include the Permian age Brotherton, Kirkham Abbey and Cadeby formation.
These formations will be encountered at depths ranging between 1.500 2.000m The wells estimated to be at a depth will be approximately 2.100 metres. The West Newton B1 well will not drill to or test any deeper formations such as the Bowland shale would be found at a depth of over 2900m. West Newton B1 is designed to further appraise the Kirkham Abbey and in particular the Deeper Cadeby where oil is though to be at its optimal. I have tweeted diagrams on how WN A2 only touched the flanks of the Cadeby so you can see the interest in test the Deeper part.
Drilling expected to take between 6 and 12 weeks and will run 24 X 7
The second borehole WN B2, may be required to investigate and test the extents of any potential petroleum reservoir encountered during the drilling and testing of the first borehole. The second bore hole may also be required to investigate and test a formation that, through interpretation, was predicted but not encountered during the drilling of the first bore hole.
The second of the two exploratory boreholes will be drilled and constructed in a similar way to the first. The exact design and construction will be determined using information obtained during the initial drilling operation.
So in Summary.. WN B1 drill to 2100. Analysis of the results, in conjunction with the WN A2 data, may lead Rathlin to decide on whether or not to drill WN B2, if they feel its required as part of the exploration drills. Also note that they may stand down the equipment and drilling of WN B2 if they are to complete an EWT which can last up to 3 months I believe for oil and up to 14 days for Gas. All depends on what they find.
ATB - and as always DYOR - Mix
PS.. great to hear from you Budge
Yes GBK.. that was me saying a few weeks ago that EWT was not delayed and it made sense to use the same crew and equipment. Less road closures, policing, costs etc and keeps the locals onside. Good move. Cellars put in first then prep for WN B1. Move that rig to WN A2 to support EWT and bring in the mother of all rigs to crack down to the Cadeby in WN B1. Jury is out on drilling WN B2 as I believe it will be a decision taken after analysis of WN B1. They may not need to do it.
3 to 4 months we will know everything we need to know about the PEL, including the seismic over Ellerby and Spring hills and a decent CPR that includes the new volumetric and EWT results plus actual s from the WN B1 Cadeby as we didn't get to test that in A2.
All exciting but it all comes down to proving extents at WN B.. how far and how deep.. does it go all the way to the coast on that Anglo Dutch Basis.. we'll soon know.
ATB Mixster - aka MightyBelle on twitter.
PS. yes I was the resident poster her for years until it went to sh*t but great to see some balanced and informative posts here. Some of the old crew still here to which is great