Member Info for ocelot

Just a reminder: the long-term pressure build-up test was on 05/11, so that is 5 weeks now.

So 1 tanker a day = monthly revenue of $330,000

CynderLad,

Shouldn't you provide the monthly revenue figure if you're going to calculate the monthly cost figure?

Not sure why you think the dice are in any way loaded in their favour.
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Personally, prefer them to partner with a company with decades of experience of oil exploration and production in Turkey than to go it alone.

Also prefer them to appraise a discovery (Basur) where 500 barrels flowed to the surface over a 6-hour test period than to explore virgin territory.

Tariffs are one thing, it's the non-tariff barriers which are at least as effective.

When Angus wanted to take advantage of low prices in the US for processing equipment for their gas production project, they discovered they couldn't - the EU requires all such equipment to be welded in accordance with EU specifications.

They have partnered with a company with 6 decades of experience of oil exploration and production in Turkey.

Their prospects have not been explored since the 1950s and 1960s - in between times, oil exploration knowledge and techniques have progressed.

They are doing all they can to load the dice in their favour.

From the Half-Year Report RNS of 28/08:

... we have also appointed highly reputable industry consultants Golder & Associates to undertake a detailed conceptual study on our Melville Bay Iron Ore Project. While we had always planned this as the next work phase for the project, with iron ore prices currently at a six-year high the case for commissioning an evaluation of the economic potential of undertaking mining operations at Melville Bay becomes that much more compelling. This will be the most important work undertaken at Melville Bay since the drilling and declaration of a maiden JORC resource back in 2011-2012...

Since then, the performance of iron ore has been pretty spectacular:

https://tradingeconomics.com/commodity/iron-ore

Any future oil production is therefore expected to be economically robust at current $40/bbl oil prices as front end capital costs per barrel are relatively low and expected operating costs, derived from those at AME's nearby East Sadak field, are forecast to be comparable with UKOG's Horse Hill field operating costs at around $15/bbl. An equivalent production stream in Turkey will therefore pay back far quicker than in the UK...

Whilst the Company believes that at current oil prices a successful initial programme can likely self-fund further production drilling, it may be necessary at some stage for the Company to raise future working capital to bring the project to fruition... (RNS of 23/07).

It is that prospect of a self-funding campaign which, if realised, could really hike the share price to another level.

Book value of investment in HHDL at 30/11/19: £5.43m.

Remarkable story of how 9 Essex-based traders made $660m on the day WTI went negative back in April (for those who can get behind Bloomberg's wall):

https://www.bloomberg.com/news/features/2020-12-10/stock-market-when-oil-when-negative-these-essex-traders-pounced?srnd=premium-europe&sref=Em01M8Hr

thin volume - a UT of 1,000 shares was enough to pull the share price into the blue.

That may be coming:

https://www.euronews.com/living/2020/12/08/is-trading-water-the-next-big-thing-on-wall-street

$50.15 12 minutes ago

Brent flirting with $50.

AME, fat finger!

AMR has a couple of rigs. Once it gets started, think this will move quite quickly:

http://aladdinmiddleeast.com/AME-101-DRILLING-RIG/EN/50/51/A

Zero volume.

This is most definitely NOT a trader's share!

SE Turkey has 13x UK Weald Basin total proven oil volumes
(572 mmbbl vs 44 mmbbl)
Kurdistan Region of Iraq (KRI) ~10x SE Turkey
SE Turkey and KRI share same petroleum system

Area south of Resan to Iraqi Border lightly explored

Drilling costs are also forecast to be significantly lower than for a comparable well in the UK. AME's cost estimates for a 1500 m depth well in the Licence are around $3 million gross. The equivalent well in the UK would cost the Company GBP5-6+ million gross. (RN of 23/07)

Many thanks, Ibug, those slides are informative.