Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"The farmout process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the Company to raise additional funds for its share of costs for this material project. We look forward to working with Envoi and with prospective farminees".
Loxley Gas Project Update
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has appointed UK based oil and gas divestment and project marketing specialists, Envoi Limited to facilitate the farmout of up to a 50% working interest in the Company's material 100% owned Loxley gas and hydrogen feedstock project ("Loxley"). The farmout seeks to fully fund the planned Loxley-1 appraisal drilling and testing programme with the Company's share of costs being carried by the farminee or farminees. The project has incontestable planning consent to proceed ahead (see RNS 10th January 2024).
Separately from Envoi's mandate, active discussions are ongoing with two UK listed energy companies interested in pursuing the farmout opportunity.
Loxley, one of the UK onshore's largest historic gas discoveries, was assessed in its most recent February 2023 Competent Persons Report ("CPR") to contain mid-case recoverable 2C Contingent Resources of 31.0 billion cubic feet net to UKOG, with an associated net to UKOG post-tax present values (discounted at 10%) of £124 million using 31 December 2022 gas prices and £87 million using an RPS Energy forward price forecast (see RNS 21st February 2023). Further development of the asset post appraisal would be required to move the 2C classification to Reserves (see glossary definitions).
The CPR is available on the Company's website www.ukogplc.com .
Stephen Sanderson UKOG's Chief Executive commented;
"The farmout process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the Company to raise additional funds for its share of costs for this material project. We look forward to working with Envoi and with prospective farminees".
For further information, please contact:
Iron ore price set for 3rd weekly rise on China demand https://www.mining.com/web/iron-ore-price-set-for-3rd-weekly-rise-on-china-demand/
Mike Buck, CEO of Petro Matad, said:
"We are pushing to secure approval from Matad Soum for the land access required to execute our 2024 work programme and we are gearing up for operations during the summer. The negative reactions to the committee's decision and misinformation spread by activists were not unexpected and underline why the central government certification process is so important for the long term and is our preferred solution.
However, with 2024 parliamentary elections looming and central government moving slowly, we are pursuing the local solution as a priority. We are also pushing the central government hard to resolve its internal issues which have created the frustrating obstruction of the state special purpose certification process for Block XX. We will buy ourselves a long-delayed operating window with the local approval for 2024 if we can get it, but we do not want to go through such a process every year.
Separately, the progress made by our renewable energy joint venture is very pleasing and to see it so quickly in partnership with Japan's OECC and involved with the decarbonisation of the globally significant Oyu Tolgoi mine is testament to the credibility, professionalism and motivation of the team."
Nicole Galloway Warland, Managing Director of Thor Energy, commented:
"The Directors are delighted that this Stage 1 Commitment milestone has been met and are excited to move to the next phase of the HoA, working with IVR to complete all JV documentation.
"The Molyhil/Bonya Earn-in and the JV allow Thor to retain an equity interest in the prospective Molyhil tenements with reduced operational risk. Thor benefits from exploration upside on the Tenements and receives considerations in the form of cash and IVR shares.
"The Molyhil divestment and Bonya sale support the Company's focus on its priority US uranium assets, where we see the most significant and nearest-term value potential for Thor's shareholders."
GreenRoc's CEO, Stefan Bernstein, commented:
"This LOI from US EXIM Bank represents a strong show of support for our Amitsoq project from one of the key financing bodies of the US Government involved in the roll-out of loans and other funding support under the US Inflation Reduction Act to entities, like Greenroc, which are developing projects which will deliver critical raw materials to Western economies. A successful application for up to US$3.5m of funding would allow us to undertake extensive and costly parts of our work programme over the coming couple of years and to achieve important milestones such as the PFS and DFS and the processing of large bulk samples of graphite ore, all of which are critical paths to production. As such, we expect to proceed with an application to US EXIM Bank in the near future.
"With the US Inflation Reduction Act's rules of origin in relation to graphite set to be implemented in the near future, we expect to see increased interest from US industries in securing friendly sources of graphite, and so this LOI from US EXIM Bank is timely."
GreenRoc's CEO, Stefan Bernstein, commented:
"This LOI from US EXIM Bank represents a strong show of support for our Amitsoq project from one of the key financing bodies of the US Government involved in the roll-out of loans and other funding support under the US Inflation Reduction Act to entities, like Greenroc, which are developing projects which will deliver critical raw materials to Western economies. A successful application for up to US$3.5m of funding would allow us to undertake extensive and costly parts of our work programme over the coming couple of years and to achieve important milestones such as the PFS and DFS and the processing of large bulk samples of graphite ore, all of which are critical paths to production. As such, we expect to proceed with an application to US EXIM Bank in the near future.
"With the US Inflation Reduction Act's rules of origin in relation to graphite set to be implemented in the near future, we expect to see increased interest from US industries in securing friendly sources of graphite, and so this LOI from US EXIM Bank is timely."