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Not before time!

Of all the wild, unprecedented swings in financial markets since the coronavirus pandemic broke out, none has been more jaw-dropping than Monday’s collapse in a key segment of U.S. oil trading.

The price on the futures contract for West Texas crude that is due to expire Tuesday fell into negative territory -- minus $37.63 a barrel. That’s right, sellers were actually paying buyers to take the stuff off their hands...

https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes?srnd=premium&sref=Em01M8Hr

It's the WTI May contract that has all the problems, Brent is a very different story.

WTI May price has turned negative: Live Charts don't seem to be able to reflect a negative price.

PS: it looks as if Live Charts are stuck, unable to register a negative price.

The exchange where WTI futures trade said the contract would be allowed to price below zero.

From a Bloomerg article:

... On Monday, a technical oddity exacerbated the price plunge as traders fled the May futures contract ahead of its expiration tomorrow, driving it down as much as 56% to the lowest level since futures began trading in New York in 1983. The following month’s contract fell 9.2% to $22.74 a barrel.

“There is little to prevent the physical market from the further acute downside path over the near term,” said Michael Tran, managing director of global energy strategy at RBC Capital Markets. “Refiners are rejecting barrels at a historic pace and with U.S. storage levels sprinting to the brim, market forces will inflict further pain until either we hit rock bottom, or COVID clears, whichever comes first, but it looks like the former.” ...

It's surprisingly subdued, just 107.5k shares traded so far.

15,000,000 warrants have been granted to the noteholders (Riverfort) at a strike price of 1 pence in exchange for waiving rights under their notes.

That, too, should provide a supplement of cash.

Restrictions: No other financing arrangements for the term of the Loan except reserves based lending and asset based finance

Think we can see where ANGS might be turning for finance once Saltfleetby is up and running.

It had been quite a while since Riverfort's last conversion RNS.

One can see now that negotiations were taking place at the time.

In one of his interviews, George Lucan said that Riverfort doesn't like to find itself in the situation where its outstanding loan represents too high a percentage of the market cap.

It's been a little while since Riverfort's last conversion RNS here, ...

We shall be updating shareholders on the details of recent progress made at all of our sites at the end of April."

It will strengthen their hand for the WSCC planning committee meeting re Balcombe.

£1.4m 2-year 4% convertible loan note from Knowe Properties, repayment of £250k of Riverfort convertible loan, amendment of terms of the remaining Riverfort loan.

I suppose one could just assume, say, that production costs of $21 per barrel were about 1/3rd of the revenues generated, but one is moving ever more into the realm of "normalised" figures.

I don't think I can, Backwoodsman.

I've just skimmed through the final results RNS, but I haven't found the number of barrels produced during the year (happy to be corrected), because they speak of the number of barrels produced by the date of the report.

Penguins,

Fair point, have omitted to allow for the (at present) "investing" costs corresponding to the revenues.

Suppose one could do a notional calculation, based on the number of barrels delivered and the company's indication of the average production cost per barrel.

The point about adjusting operating losses for "revenues from the sale of hydrocarbons produced as a by-product of testing and evaluation activities" is that they WILL be included in the income statement once UKOG passes, for accounting purposes, from the ewt to production.

Penguins,

My comments related to the income statement and, in particular, operating losses.

I will not find those in the cash flow statement which, again by definition, treats cash flows.

Backwoodsman,

Losses, by definition, are shown in the income statement.

Adjusting the operating loss of £4.788m for the "revenues from the sale of hydrocarbons produced as a by-product of testing and evaluation activities" of £2.411m gives us an adjusted operating loss in 18/19 of £2.377m.