Member Info for ocelot

somewhat unfortunate misplacing of the "s" in the subject-title!

Thank you for your response to my question earlier, Mirasol.

On a positive note we also firmed up our plans for the reperforation and recompletion of HH-1. The current completion and perforation scheme is less than optimal for both pump efficiency and oil inflow. Consequently, if successful we remain confident this programme can further improve the well's oil production rate. We currently plan this activity to occur this summer. We should not forget that outside of the Wytch Farm Field, HH-1 is currently the UK onshore's most productive well. (Interim results RNS of 30/06)

Given their current lowly market cap, think they may raise relatively small amounts but on more than one occasion, as we've seen in the past when a particular placing has been largely subscribed by one institutional investor.

Also think management may have to participate in such a placing. If you're an institutional investor, you want to know that management is itself financially committed to seeing the share price rise.

Even if it is £3.4 for Turkey I suspect UKOG will try to place for around £5m or higher to cover for other programmes such as Loxley and HH sidetracks, etc.
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Perhaps that is what they would like to be able to do, but their current market cap limits how much they can raise in a single placing.

Share consolidation won't be too far off either and then the entire rinse and repeat process can start again.
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But share consolidation doesn't change the market cap so doesn't make it any easier to raise finance.

To earn its 50% interest in the Licence, the Company has agreed to fund 100% of the first of 5 commitment wells in the Licence's 5-year exploration term, together with a small 2D seismic survey with an expected cost of $1-$1.5 million.

AME's cost estimates for a 1500 m depth well in the Licence are around $3 million gross. (RNS of 23/07).

The initial financing requirement is, therefore, of the order of $4-4.5m, ie £3-3.4m.

Last time I did a calculation UKOG needs to raise between £5m-£6m to fund Turkey siesmics and drilling. That would be around 3Billion new shares to be issued within the next month since they need to perform siesmic analysis before the end of the year.
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But it isn't the seismic which is costed at £5-6m.

And why the "next month", when we have yet to receive confirmation of the submission of the standard documentation to the Turkish authorities for the assignment of AME's 50% interest to UKOG.

I've been invested in the UK onshore for 25+ years and getting out at break-even over the whole period is the best I can imagine right now.
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Why have you remain invested in UK onshore for 25 years, Mirasol?

PS: their drill sounds interesting. Because of the confined space, they will be assembling and dis-assembling it as they move it around underground.

Crude oil (WTI) climbed above $43 a barrel as the pickup in economic activity in the U.S. and China signaled a pronounced recovery in crude consumption. (Bloomberg)

Listened again.
Intro, half-term report.
From 03:31: Wales
From 04:11, speaks of Mark Austin as a senior geologist who is "very experienced in gold and, in particular, in gold mines".
Their plans are "very exciting", he's not aware anyone's done this work before.
Aim is "to maximise our prospects of finding unworked veins of gold", "feel very confident they exist, just need to unearth them".
From 07:30-10:32, Melville Bay, "definitely an untold story there".
Then Amitsoq.

Sorry, Justin Waite!

****************************/articles/alba-mineral-resources-and-eastinco-mining-and-exploration-d1153f0

It's the market site where Justin Thwaites conducts interviews.

From the August 2020 "UK gold assets" presentation:

... Mr Mark Austin. Mr Austin is a member of SACNASP (Reg. No. 400235/06), Fellow of The Geological Society and Fellow of the Geological Society of South Africa. He has a B.Sc. Honours in Geology with 38 years’ experience. Mark Austin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration targets, Exploration Results, Mineral Resources and Ore Reserves’, also known as the JORC Code. ...

2 teams, 1 bulk sampling, 1 drilling.

Mentioned Mark Austin, senior geologist, with experience of gold.

Issue of Shares to Contractors

The Company announces that it has settled certain fees to contractors by the issue of a total of 17,857,143 new ordinary shares in accordance with the terms of the relevant contracts.

It's a modest amount, but it's encouraging to see contractors themselves are prepared to accept shares in payment of their fees.

Grant of options and warrants, issue of shares in payment to contractors.

One of the obvious effects of the use of tax losses is to front-load the cash flow from Saltfleetby.

In the mid-case forecast, tax becomes payable for the first time in 2024 (CPR, p52).

Stuff to do on a desktop, so give myself a break from time to time by casting an eye on the bulletin board.

The next few months should prove interesting, on the ground and in the market.