Member Info for Oktane

So our CEO has no investment in his company or exposure to the stock price performance, because it is in the form of options, according to Scandick.

I wrote this post based based on facts, sorry you don't like it. Please refute a single part of my statement with FACTS. I will repost EVERY time I see you claim SS has no investment here.

I have a very large investment here, and when time allows I will defend it from the likes of you trying to scare off new investors.

The following is 100% factual based on UKOG accounts and RNS releases; no amount of spin can refute anything stated below. ( unlike posts stating otherwise every day by Scandick)

From Note 5 on page 49 of annual accounts:

Steve Sanderson earns 240k salary plus options, no pension payments

2017 99k 41% of salary amount as options
2016 367 153% of salary amount as options

So during 2016-2017 accounting period our CEO received payment of GBP466,000 compensation in the form of options that will only have any value if the share price goes higher and stays higher.

The constant deramping of “our CEO has no investment in the company” is pure manipulation to ignore the huge personal investment SS has in the UKOG. He is exposed to tens of millions of shares from his options positions. Sanderson has paid for his large option positions to own UKOG shares by accepting less cash income today: his skin in the game is this large forgone income and accepting options that will only have value if the share price of UKOG goes up and stays up.
No one, repeat NO ONE, has more skin in the game here. GBP 466k over two years in shares for this CEO job is equal to his cash salary over the period. Ask any CEO receiving half their compensation or more as shares if they are personally invested in their company… Some of us posting here have been granted options as part of our compensation in the past, and can absolutely confirm we have acted to promote our investment via successful company results. 100% SS is motivated to increase the share price by his huge options positions. 

For the many uneducated reading here, especially Scandick, a call option to buy at 0.4 when the underlying and forward price is at 1.40, the option is DEEP IN THE MONEY with a delta of perhaps 0.90, meaning it is an exposure like 90% of the underlying, or it is 90% likely it will expire in the money and be exercised.

Our CEO Steve Sanderson has a total of 85 million call options (from 16 April 2018 RNS). SS owns 25 million call options at a strike price of 0.4, with a 90% delta then he has a current holding of underlying stock position of 22.5 million shares. This would be worth at least GBP315,000 today.

If the price of UKOG goes up from 1.40p to 1.50p the position profits by GBP22,500

If the price of UKOG goes down from 1.40p to 1.30p the position shows a loss of GBP22,500

This is an economic exposure that every options trader, market maker, or hedger experiences and must report in a daily mark to market. Unfortunately some serial derampers here do not comprehend this exposure; it is real, and was very costly for SS as in the last two years he has accepted share options instead of cash salary of at least GBP200,000 per year, so you can state that he has in fact invested well over GBP 450,000 in the future performance of UKOG.

Bit more skin in the game than anyone posting here!!

First tanker of the day is in for more crude, news is good!

It is pure manipulation to ignore the tens of millions of shares our CEO Stephen Sanderson has in the company,
No one, repeat NO ONE, has more skin in the game here. GBP 240k salary for this CEO job is a cut in pay compared to similar jobs on AIM companies, which average 600,000.. Sanderson has paid for his large option positions to own UKOG shares by accepting less cash income today: his skin in the game is this large forgone income and accepting options that will only have value if the share price of UKOG goes up and stays up. 100% SS is motivated to increase the share price by his huge options positions. 

For the many uneducated reading here, especially Scandick, a call option to buy at 0.4 when the underlying and forward price is at 1.30, the option is DEEP IN THE MONEY with a delta of perhaps 0.90, meaning it is an exposure like 90% of the underlying, or it is 90% likely it will expire in the money and be exercised.

Our CEO SS has 30 million call options at a strike price of 0.4, with a 90% delta then he has a current holding of underlying stock position of 27 million shares. This would be worth at least GBP351,000 today.

If the price of UKOG goes up from 1.30p to 1.40p the position profits by GBP27,000

If the price of UKOG goes down from 1.30p to 1.20p the position shows a loss of GBP27,000

This is an economic exposure that every options trader, market maker, or hedger experiences and must report in a daily mark to market. Unfortunately some serial derampers here do not comprehend this exposure; it is real, and was very costly for SS as in the last two years he has given up salary of at least GBP300,000 per year but accepted options instead, so you can state that he has in fact invested over GBP 600,000 in the future performance of UKOG.

Bit more skin in the game than anyone posting here.And Mr Sanderson has more options than listed above.

So for 2019 Trolls, give it a final rest. The CEO of UKOG has big skin in the game, and is hugely invested in the company and share price performance.

Not certain if we should keep giving oxygen to him, however like you I want to defend my investment here and try to provide facts to counter the constant subtle and not so subtle deramping.

Scandick posted: We are now long overdue a proper rns ewt update. Assume the testing period is almost over or actually over.

Facts are UKOG suspects KL3 and KL4 are connected, and will fully test to determine full charateristics and provide data for an accurate CPR. Read the last sentence below, unfortunately for derampers, testing will be continuous until production begins, tough for some to accept but the tankers are set to roll all of 2019.

15 November 2018 RNS:
Stephen Sanderson, UKOG's Chief Executive, commented:

"The 2018 EWT's total test production of almost 14,000 barrels of oil, with over 10,000 barrels to date from the single Kimmeridge KL3 horizon, firmly establishes Horse Hill as a commercially viable oil field. These "hard fact" production numbers, together with the million dollar sales revenues, undoubtedly mark the most significant milestone in the Company's short history. The Company will spare no effort to push Horse Hill towards full time production in late 2019/early 2020.

We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production that will take us up to the spud of the HH-2 and HH-1z production wells in 2019."
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Tankers being filled during all of 2019. RNS on results KL3, KL4, KL3/4 in good time when the data is complete.

Seadoc: "Please show me what I have missed and confirm that if the sp went to zero SS would be £994,500 out of pocket."

Wow, thanks for the enlightenment, will inform all our dealers to immediately cease hedging all deep in the money call options, now I realize we have nothing at risk.
Will make hedging the option books much cheaper, especially with negative carry in so many current bond markets. We may need to hire you for the risk analysis team if you are willing to come out of retirement.

Precise details are only relevant to SS.

Point is our CEO has huge exposure to the share price, and has more skin in the game than anyone!!

He accepted a lower salary, plus options. As bullish as you can be about the future prospects of the company you are CEO of.

Seadoc a deep in the money call option has all the economic exposure as the equivalent underlying asset, however acquisition of full legal title to the asset is deferred until exercise.

Steven Sanderson has 85 million call options with a strike price of 0.4p. Reasonable estimate of the delta for these options expiring 3Q 2019 is 0.90 or 90% chance they will expire in the money (above 0.4p).

Our CEO has an exposure of 85,000,000 x 0.90 = 76,500,000 shares, worth GBP 994,500 (from 76.5m x 0.13p per share price)

If the price goes from 1.30 to 1.40 the value of Mr Sanderson's position is now GBP 1,071,000 a gain of GBP76,500.

If the price goes from 1.30 to 1.20 the value of Mr Sanderson's position is now GBP 918,000 a loss of GBP 76,500

I'll read it to the reader to decide if Steven Sanderson has any 'skin' in the game or personal exposure to the share performance of UKOG.

Unless Scandick or Seadoc can refute the above simplified summary of our CEO;s exposure to the share preformance of UKOG going forward, I respectfully request they both STFO !!!

For anyone reading you can safely ignore the hundreds of posts from Scandick falsely accusing our CEO of having no personal investment in UKOG. Nothing could be further from the truth.

Just for Seadoc: Options to buy are an asymmetrical payoff position. This means there is limited downside and UNLIMITED UPSIDE. So obtaining 0.4 strike price options means the value at exercise or expiry is the current stock price minus 0.4p.

Somehow, both you and Scandick, need to come to terms with the fact the Steve Sanderson has the LARGEST individual exposure to stock price movements of UKOG. This is skin, liver and kidney in the game. Over 75 million shares via his current option position. Big personal involvement by every rational perspective.

That is all.

Great post argus1, nothing like a multi-discredited expert providing key advice to the opposition.

Think as regards swampie anti oil efforts in the Weald, he has retired for good this time, in my opinion.

Close to 100 supporting documents with the HH planning application, SS has been very hard at work on our behalf and earning his salary.

Have a strong suspicion UKOG attention to detail and process will very highly impact the relative investment performance compared to an alternative Weald wildcatter. Institutional investors and bank lenders will react accordingly in 2019 as commercial production commences in the Weald.

All very impressive and positive for LTH as far as I can see.

Please use the comment section of the planning application, make the energy independence and tax revenue arguments an any other you wish to consider, offset the usual NIMBY and swampie deluge of comments

https://planning.surreycc.gov.uk/planappdisp.aspx?AppNo=SCC%20Ref%202018/0152

Proposal: filed 7 Dec, valid date 20 Dec 2018

Retention and extension of an existing well site, HH1 and HH2 wells, and vehicular access to allow: the drilling of four new hydrocarbon wells and one water reinjection well; the construction of a process and storage area and tanker loading facility; new boundary fencing; well maintenance workovers and sidetrack drilling; and ancillary development enabling the production of hydrocarbons from six wells, for a period of 25 years.

Specifically:

The EA dropped its usual public consultation on the proposed permit because testing was imminent. But it promised to tell a residents’ group when the pre-conditions had been met.

So far, the group, Brockham Oil Watch, has said it has heard nothing. The EA is treating the group’s questions, sent earlier this month, as a Freedom of Information request. This means there is no obligation on the EA to respond sooner than 20 working days.

DrillOrDrop asked the EA whether the pre-conditions had been met and invited it to respond to the group’s concerns about the handing of its questions.

The EA said this afternoon it would be issuing a briefing tomorrow (Thursday 20 December 2018). Asked about the form and distribution of the briefing and, again, whether the pre-conditions had been met, an EA spokesperson said:

“That is all I have”.

Drill or Drop reports 'questions' over validity of permits for Brockham

https://drillordrop.com/2018/12/19/angus-begins-brockham-test-programme-amid-local-questions-over-consent/

In the event it gets to 1.20 will buy all you want to sell Jung.

Investing is different than trading, perhaps stick to the former.

So UKOG have just bought 4.7 million barrels of oil for less than 8p a barrel.

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The time to buy is when there is a motivated seller, SOLO is desperate for cash, great move by SS going forward.

It is actually much better, 4.7 million barrels is from a 12% recovery factor.

Will cost money, but using water or gas re injection wells very possible to get to 24% recovery factor which is 4p per barrel. This is very positive for long term investors.

Sting69

Best wishes on making it through such a difficult time. Certainly makes speculative positions unimportant. I've been there, you will make it through, hope you have someone to talk with. GL

Will be higher here when you come out the other side.