Member Info for ocelot

Saltfleetby operations are forecast to continue for 10-15 years.

"First full year gross revenues are expected to be in excess of £7 million and to greatly exceed total abandonment costs of £2.5 million".

The abandonment costs are small in relation to forecast net cash flows.

That may help to explain the Brockham and LIdsey cash reserves and ANGS's RNS about its abandonment policy, yes.

It's all part of the ongoing engagement with the OGA.

JT-P's change of title, from board director to non-board director, doesn't change his identity!

YL,

Looks as if JT-P's status may be similar to that of Mike Wells, a non-board director.

Almost 3 years later and UKOG is "Finalising new site selection to drill Portland and Kimmeridge prospects.

To be borne in mind, yes, but not at all sure as to timing of cash output.

"NB. For the record, neither Gordon Bowden or any other member of the Pandora’s Box Investigations Limited team are Anti-Semitic...".

In an earlier version of this text, there was a reference to the Rothschild family, but that, happily, now seems to have been removed.

In Angus's case, the cash flow forecasts will be central to their submission.

Note, in 7.9 (b), reference to "the costs of all committed projects (including but not limited to the Commitment) ...".

This may well explain the need for the cash reserves against abandonment of Brockham and Lidsey.

7.9 Cash Flow Forecasts
(a) In other circumstances the Applicant’s
cash flow forecasts from the date of the
application to the date in the future when
that Commitment is fully discharged will
be fundamental to the OGA’s assessment
of the Applicant’s financial capacity.
(b) These cash flow forecasts should include
details of all sources of free cash flow
expected to be available to the Applicant
for the period of the cash flow forecast
(including full details of debt facilities), the
costs of all committed projects (including
but not limited to the Commitment)4.,
the costs of any uncommitted projects
where cash flows from those projects
are subsequently included in the cash
flow forecast, and any other expenses or
repayments that the Applicant will need
to satisfy, in particular, repayment of debt
and interest expenses.

Thank you, Ja51.

Yes, but if you care to post them again, happy to take another look.

It is "under discussion" with the OGA.

How can they provide a definitive response when the matter is subject to ongoing discussion with the OGA?

Fail to see why this response constitutes "ringfencing question dodged":

We have taken considerable care to plan for the ultimate abandonment of the Saltfleetby Gas Field, probably in ten to fifteen years from now, to ensure we have not acquired a significant liability. That work is complete and is under discussion with the OGA. We also aim to complete the decommissioning of two partially abandoned wells at an early stage. We expect however to fund the eventually liability from the considerable revenues generated by producing the remaining gas in the field. First full year gross revenues are expected to be in excess of £7 million and to greatly exceed total abandonment costs of £2.5 million. The Company’s general approach to abandonment provisioning has been comprehensively laid out in an RNS release of 24 October 2019.

Is the timescale for reconnection of the Saltfleetby Gas Field between May and August 2020 still realistic? [Investor Presentation 30 Sept 2019]

Answer

This is still the target we are working towards. We have very recently had confirmation that the NTS will endeavour to meet this deadline and we are sourcing other equipment for the new production facilities also to meet this target. It is true that the work is considerable ...

Re Saltfleetby:

First full year gross revenues are expected to be in excess of £7 million and to greatly exceed total abandonment costs of £2.5 million.

There might well be some selling, YL, but, given GL's estimated value is 4-7p "right now", there is room for the share price to rise quite lot before that selling kicks in!

GL.

https://www.youtube.com/watch?time_continue=7&v=XzUfFGaBrQ4

nookie,

GF's interview of yesterday makes it clear they are working actively on 1 or more deals re their Greenland assets.

RA,

Am not an oil expert, so not qualified to discuss the subject in detail.

The RNS is much more reserved than your phrase: "it could produce commercially viable levels".

What GL wrote is this: "we remain quietly optimistic of achieving commercial success at Brockham".

Saltfleetby can genuinely transform ANGS's prospects and image, because it offers underlying cash generation over a decade or more.

The market anticipates, so I would expect positive progress on Saltfleetby to trigger a rise in the share price, a rise which, imho, is overdue!

(Re Hollis's 300 bopd - not sure how much significance to attach to this figure, suspect he was, above all, anxious to avoid being accused of over-hyping prospects in public).

YL,

Think the key is visible progress on Saltfleetby. If the market can begin to believe in the net cash flow projections for Saltfleetby, then the share price will begin to rise, financing options will widen and it becomes easier to envisage one or more additional project(s).

Re Balcombe: think it's too early to form any very clear opinion concerning its prospects.

RA,

Your post prompted me to pull up the RNS of 04/02/19: it's a bit more nuanced than you suggest in your post:

"It has become apparent that a part of the perforated interval is producing water, which is inhibiting significant oil flow and therefore has not allowed for sustainable flow rates of oil to be reported at this time.

Small quantities of oil of 40 plus API have now been returned to surface and sampled in the returns and has been confirmed through analysis as Kimmeridge oil".