RE: Question of the Day: UKOG-"4 Aug 2018 18:33
16:54 - 4 Aug 2018
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Answer:
Standard Analysis - Today, UKOG plc has a mkt cap of nearly £103.99 million region at 2p. The 52 week high was 10p which suggests a mkt cap of nearly £500 million.
UKOG plc Horse Hill EWT results has just been released on Fri, 3 Aug 2018 [Re: Portland]. The next news could be the commerciality of the the Horse Hill Portland EWT. After that comes, the 2 layers of the Kimmeridge Horse Hill which has been said to be the "prize" in articles.
Stephen Sanderson has said his vision is to be a mid-player which could be anything up to HUR mkt cap currently etc. Mr Sanderson did not specifically mention exactly the number [mkt cap] of his vision.
I cite an academic example, if I may: SXX. At inception, it was around 1p and during the later stages, one would read non-stop posts on that forum. Reminds one of UKOG today and earlier. Quite understandable as it is/was early stage play.
We also know that UKOG plc is well placed in the Weald Basin, UK and Schlumberger & Nutech*s data will attest to this via factual data. Nutech cites 10 BILLION BARRELS OF OIL in place for Horse Hill. For the Weald Basin, 120 billion barrels of oil is cited by these American heavy weights.
So, now on SXX, the current talk has been of dividends. SXX in in the FT250 and from last check, they were No 204 from a poster on their forum.
Another academic example is Solg. It also went from a small mkt cap of £8m to the current 22p region. The high was 46p area so that will mean some £700m mkt cap. From recall, the current mkt cap is £400million region. Solg moved f from AIM to Main Mkt. If Solgold goes on to production, the investors especially institutions would EXPECT a dividend. This is norm.
So, going on UKOG with an operator status and 10 billion barrels of oil in place [recovery % yet to be proven], then would it not also be expected to pay a dividend if it could become a MID-Oil player.
Comment:
At this stage, many are unhappy that they bought at say 2p and they have not made the same amount as those who bought at inception at 0.3p beginning of 2014 etc. So, looking forward, what are investors looking at? A quick turn of 5% or 10% short term or a longer term horizon? If it is, then, one would like to obtain a dividend otherwise what is the point of holding a stock? A dividend stock has some positives going for it.
Hope that helps. Sorry for typo*s.
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