Member Info for ocelot

Pretty quiet day on the market: UKOG is the 8th biggest volume (54.4m at present).

... no longer: the link to the annual report is no longer placed just after "Welcome to UKOG".

Indeed, that is what I am hoping for once Angus are satisfied about the performance of Saltfleetby, accretive external growth.

But, to engage in such a strategy, they would doubtless prefer to see their share price considerably higher.

Dilution is a terribly over-used word.

It's ACCRETIVE if an issue of shares leads to an increase in net assets per share or earnings per share.

Net assets of £35.912m at 30/09/22 = c0.17p per share.

UKOG's put a link to their accounts just after "Welcome to UKOG" on their home page:

https://www.ukogplc.com/

UKOG:

Market cap: £12.4m
less current cash reserves of £2.5m = business valued at £9.9m
less £6.7m value of tax losses to a trade buyer with taxable profits = £3.2m

Mark Costar of the JOHCM UK Growth fund marks April Fool’s Day by pointing out a few that he finds especially funny.

Citywire article dated yesterday. 1 of the 4 stocks mentioned is iGas, very much in the same sector as UKOG:

Energy value exploration
Next Costar pointed to IGas Energy (IGAS), an onshore oil and gas exploration and production business.
‘It trades below the value of its tax losses, let alone its profitable producing assets,’ he said.
Costar is confident the company’s geothermal portfolio will drive significant growth.
‘It’s got the UK’s largest geothermal portfolio out there,’ he said.
Shares in IGas have tumbled more than 59% over a year to 16p. They are also 85% off their peak of 106.5p in September 2022 ...

The Group estimated carried forward tax losses are £16,421,000 (2021: £10,799,000), none of which are recognised as a deferred tax asset (p53 of annual report)

At 40%, worth £6.7m to a trade buyer with taxable profits.

£2.5m of current cash reserves.

Shareholders' equity (or net assets, if you prefer) at 30/09/22: £35.912m

Market cap: £12.4m

Looks underpriced.

volume is quite good: 142.5m.

When the price goes up, it tends to encourage selling.When the price declines, it tends to encourage buying.

Without knowing at what prices buys and sells are being executed, "Buys 47M sells 67M" tells us what we already know, that the price has gone up.

Brent $85.01 + $5.12, 6.41%.

... the Company has recently received comments from Natural Resources Wales ("NRW") covering a relatively narrow set of points relating to the EPSL (European Protected Species licence) including noise mitigation measures, biosecurity and the duration of the proposed exclusion measures for bats. The Company is in the process of compiling responses to these EPSL queries, including generating some further limited baseline data, with the aim of reverting to NRW with full responses within the next two weeks or so. Once it has confirmed that it has no outstanding queries, the Company is hopeful that NRW will proceed to a decision soon thereafter on the grant of the permits so that the Company's dewatering activities may proceed. (RSN of Monday 27/03, 1 week ago)

That does read as if management believes these latest limited queries may constitute the last of the regulatory hurdles.

Early days. Never easy to predict the market's immediate reaction to milestone RNSs. Should be more positive news to come, wait and see (imho).

Forum Energy Services Limited 14.50%
Kemexon Ltd 8.78%
Aleph Fin C Limited 7.86%
Knowe Properties 6.73%
The above information was accurate as at 29 March 2023 and is based on TR1 notifications received by the Company.

and some veer off course.

It's not just about gas and cash flows, it's also about the market's perception of Angus: this morning's RNS has laid to rest the years-old talk about credibility.

If approaches are received, then, as we've seen in the past, GL and colleagues will have to consider them, in shareholders' interests.

But I think it is very clear that is not the aim. Management has long-term and, indeed, global ambitions for Angus.

Provided the share price continues to rise, it can remain even stevens.

Saltfleetby has taken considerably longer to reach this stage than management anticipated.

They've been reinforcing their team in recent months.

Now that the sidetrack and cash are flowing, think it is reasonable to expect further announcements quite soon.