Member Info for ocelot

... except that GL clearly thinks there is no need for a Plan B.

Very significant upside potential in the event of a higher gas price than the average gross price retained in the CPR of 38p/therm:

The valuation of the field is highly sensitive to headline gas prices... At target peak production rate of 10 million standard cubic feet a day an extra 1 pence/therm is equal to about £350,000 per annum of additional revenue from the gas field, of which 51% goes to Angus. Given Angus’ tax shield there is very little incremental cost associated with this improved revenue – essentially frictional supply discount, shipping and grid entry charges etc.

We have planned in the weeks ahead a full presentation of Angus’ strategy going forward as a Transition Energy company and this will involve new projects. However we don’t right now see these projects as involving signficant (>£0.5m) spend, and so large placings, before First Gas. ...

Note: "projects" in the plural.

https://www.angusenergy.co.uk/media/investor-questions/

UKOG's share price volatility has been because, at any given time, all eyes have been focused on the success or failure of one particular well (Broadford Bridge, HH-2z).

IF UKOG can develop a portfolio of producing wells in Turkey, even if none of the wells proves to be a substantial producer on its own, it will change the company's market profile which will become far less speculative.

The warrant prices are so close to the placing price that I think the placing should be considered as a staggered one to raise a total of nearly £3.5m and not as one of £1.5m.

Al the posts on drilling and seismic costs remind us that, by comparison to the UK, Turkey is a relatively low-cost environment.

"No results found", I'm afraid.

The placing was for £2.2m.

The first well + seismic = $4-4.5m.

The placing covers initial costs, but not all the costs.

Bit confused as to where the confusion has arisen!

Initial drilling doesn't mean "all the costs of the first drill", it just means initial drilling.

Penguins, had to find my post of 07:58 of yesterday in order to remind myself of it!

From the RNS of 02/10/20 (my capitals):
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that ... it has successfully raised GBP2.2 million to fund its share of INITIAL DRILLING and seismic costs through a placing ("Placing") of 1,374,999,993 new ordinary shares ("Placing Shares").

The capital letters were to highlight UKOG's choice of words.

A post by lopodop on a rival site pointed me to this extract from AME's Company Overview on its website and, in particular, the last few words:

The Future of Aladdin Middle East
Going forward, we aim to build upon past success, acquiring more leases, drilling more wells, producing in larger quantities and adding value for our investors. AME is striving to be an integral part of what we believe to be a transformative moment in Turkey’s oil and gas industry as new techniques and a reinvigorated desire for exploration help to unleash Turkey’s full hydrocarbon potential. The company aims to expand in the near abroad. As a part of this process we will continue to add to our assets and infrastructure and hopefully, one day soon, take the step of becoming a publicly traded company.

http://aladdinmiddleeast.com/Company-Overview/EN/1/4/A

31kms - that must have hurt!

And, yes, I think there will be another fundraise, too, but that isn't the point of my posts.

My posts concern the likely timing of this fundraise, which, given UKOG's payment in cash of the 2nd instalment due to PH Well Tests Ltd, appears to be less pressing that a lot of us had originally assumed.

Penguins,

No, I don't take "initial to mean all the costs of the first drill and the later seismic programme", I take it to mean what it says, initial costs.

The simple truth is that nobody knows exactly what is covered by "initial" costs.

They've invested £550k in cash for HH equipment for the 2nd instalment, the 1st instalment having been paid in shares.

When UKOG raised £2.2m for Turkey on 02/10/20, it seemed to do so in order to finalise the agreement with AME (14/10/20) rather than because it actually needed the cash at the time.

Think this is when UKOG may have got ahead of the curve in terms of its cash resources.

Under the agreement, UKOG's sole commitment is capped at $5m.

$5m at 1.25 is £4m.

But the £ has strengthened. At the current rate of 1.37 it is about £3.65m, a potential saving of £350k.

Late-reported 9.6m trade at the mid-price bumping up the day's volume to 31.1m.

Agreed, we know the gold is high grade, it's "just" a question of locating it in commercial quantity.

PS: the figures provide a measure of GL's ambitions for the company