Member Info for ocelot

Penguins,

My comments were on the income statement, I am happy to leave the cash flows to you (for now!).

but bearing in mind that the oil price has moved against it in the recent past, of course!

So, 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 of £2.377m.

It means that the company made a decisive move towards break-even in 18/19 and that it would not require much more production for it to become profitable at an operating level.

As can be seen, they would have, effectively, halved the operating loss had they passed through the income statement.

From note 12 of the final results RNS of 31/03:

Revenues from the sale of hydrocarbons produced as a by-product of testing and evaluation activities have been offset against the costs of the intangible asset. These totalled GBP2,411,000 in the year.

So they did not pass through the income statement, which only included revenue of £213k and, therefore, were not deducted in arriving at the operating loss of £4.788m and total loss of £5.395m.

The accounting treatment of these revenues will change with the move from ewt to production.

Not suggesting HH-2z will produce 1,000 bopd, but the point is that UKOG's losses reduced very considerably during 18/19, so almost any additional oil production could make quite an impact.

1,000 bopd at, say, $27.50 at, say, £1 = $1.25 = £8.03m

Operating loss for the year 18/19 was £4.788m

Total loss for 18/19 was £5.394m.

Precisely, CaptainStanley.

There are an increasing number of countries which are beginning to relax restrictions.

The UK won't be amongst the first, because it was amongst the last to introduce them.

But the market will, at some stage, anticipate their relaxation.

Until then YA/Riverfort and deteriorating sentiment will ensure that the share price graph continues to do what it has done for the last 6 months, or longer. Why wouldn't it?
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Why would sentiment continue to deteriorate?

just for information: Singapore oil trader goes under:

https://www.bloomberg.com/news/articles/2020-04-19/hin-leong-is-said-to-have-failed-to-declare-800-million-losses?srnd=premium-europe&sref=Em01M8Hr

Agreed, brianearlspilner.

The day of the Saltfleetby CPR, 05/03, the stock touched 1.35p at the high in volume of nearly 30% of the issued share capital.

That proved to be a false start, but there will come a time when the current price level will have been consigned to the past.

If we take the mid-price of brianearlspilner's expected 12-month range of 5-6p, then the ROI for an investor at the current price is 1,000%.

that is, all of the pressure is on the spot price, especially for WTI - a few months down the line, the oil price is not so dire.

WTI much more so than Brent:

https://www.marketwatch.com/story/oil-market-in-super-contango-underlines-storage-fears-as-coronavirus-destroys-crude-demand-2020-04-17

Oil market in "super contango", WTI much more so than Brent:

https://www.marketwatch.com/story/oil-market-in-super-contango-underlines-storage-fears-as-coronavirus-destroys-crude-demand-2020-04-17

ie, it's a technical split, between a new ordinary share of 0.0001p (v 0.001p at present) and a B deferred share of 0.0009p, but the deferred share is valueless.

Genel ... has requested clarification regarding the repayment mechanism, and has
responded to the KRG with a proposal that balances the KRG's near-term
liquidity challenges with longer-term developments benefiting both the KRG
and Genel. The Company will provide further detail as discussions with the
KRG progress.

That was the intriguing part of yesterday's RNS: one awaits the "further detail" with interest.

It's not a share split, it's a change in the nominal value of each share.

We both know what would happen if I & others left this board Ocelot. (from YL's post of yesterday, 09:50)
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It's not a question of what "would" happen to the board, it's a question of what HAS happened to the board:

the key "other", Ja51, has left the board, leaving YL to attempt to replace him.

See the RNS of 03/04:

Business of the AGM

The resolutions to be put to the AGM will include customary business relating to the adoption of the Financial Statements, the re-appointment of a director retiring by rotation, the re-appointment of the Company's auditors and seeking authority to allot shares and the authority to do so on a non-pre-emptive basis.

In addition, a resolution will be proposed to reduce the par (or nominal) value of the Company's existing ordinary share capital from GBP0.01 to GBP0.001 per share, with a further resolution to make certain changes to the Company's articles of association to effect that reorganisation of share capital. T he proposed share capital reorganisation is intended to create an appropriate buffer between the nominal value and the market value of the Company's shares. The trading price of the Company's ordinary shares is not expected to be affected by the share capital reorganisation, as it is only the nominal value of the ordinary shares which will change. The total number of ordinary shares in issue will not change and e ach Shareholder will have the same number of ordinary shares immediately after the reorganisation as they have immediately prior thereto.

The explanatory circular which has been posted to Shareholders provides further background in respect of this and each of the other resolutions to be proposed at the AGM. Shareholders are advised to read this document carefully.