Member Info for Penguins

UKOG already have a well at BB, and a sidetrack, which according to UKOG was successful in the sense of understanding the reservoir. BB had multiple tests over months of more KL layers than tested at HH, extensive coring of the Kimmeridge (remember 'oil' oozing from it) but the reason for not doing anything is waiting on more untimetabled drilling at HH on the other side of the Weald Basin where the Kimmeridge has already been tested extensively, and Loxley which awaits almost certain approval but is primarily a Portland test, but is unfunded.

Seems there's more to say about the untested (geothermal (or did they learn more about water than oil) for an unbuilt greenhouse - why no mention of a few solar panels on the site for more greenwashing?

This is second time UKOG have been given a 2 year extension to avoid doing anything, at least it saves on the cost of restoration.

Legalease,

' (fracking), now looks like acceptable policy'

Well the review is still underway -but I accept it might be acceptable policy, but it's pretty clear that it won't help the current situation and the UK's needs up until renewables / nuclear? / anything else contribute far more to UK's power needs so in the interim the shortfall in domestic production can be met more easily (and remember it's yet to be proved fracking the Bowland will work) by conventional offshore developments.

But specifically what does it have to do with UKOG - UKOG has maintained it won't frack - and this is probably because the Kimmeridge is unsuitable.

Wizard

still clutching at straws, the gas HH-1 was meant to test wasn't there - probably because there was no source for the Triassic - nor was there any Triassic reservoir.

As for the KL1 and 2 I'd have a look at the Slide 11 Kimmeridge correlation in the 2017 Corporate Presentation.

KL1 and KL2 are barely discernable on the logs so likely to be a much poorer reservoir - in fact the NUTECH OIP Executive Summary only considered the KL2 (Lower Micrite) which had considerably less OIP calculated (about a fifth) than KL3 (Mid Micrite) and 4 (Upper Micrite) which as posters keep repeating UKOG isn't producing from. Note 'OIP' in the KL2.

BTW,

Should have added 'open' to the description of fractures where I haven't put 'closed.

Skwizz,

Of course. To start with frackng is done from the well to be produced, injection is done from a remote well.

But in a fractured reservoir it is difficult to predict where injected water might go as it will preferentially travel through the fractures than the matrix (the main rock body).

Fracking uses much greater quantities of fluid at high pressure and there's added material (proppant) included to 'prop' open newly formed fractures. If there are already fractures that's where the frack might 'disappear'. The aim is to open up closed fractures and initiate new ones. The water is then expected to be pushed back to the well by oil coming out of the matrix (with a massively greater surface area against the fractures vs the original wellbore) and partial closing of the fractures - though hopefully still propped open.

Injecting the last thing you want is the water preferentially travelling through the fractures to the production well. In an unfractured reservoir the hope is the water will increase pressure in the matrix and also sweep the oil in the matrix towards the well.

Not sure what Tony's analogy is about.

Steve,

Not sure what you know about HH but UKOG has been extremely coy about how the reservoirs have flowed at HH, even to the extent on never giving a detailed factual account of current and past Portland production, and highly selective flow rates from the testing of both Kimmeridge and Portland. Since the start of Portland production there has been no advice as to future production except UKOG suggesting improved flow in RNS about workovers (bigger pump, reperforating) that, from the published OGA (now NSTA) figures, didn't happen.

As for your post about the EA being fast that was the time from publishing a final draft of the permit they were minded to issue so that a short public consultation could take place before formally issuing it.

UKOG claim it took 31 months but the original application was withdrawn; a new application made in early 2021 is what the recent permit covered, so over a year, a bit longer than Angus's application for Brockham water injection etc.

As to the Kimmeridge reservoir there have been many theories as to why it isn't being produced. It's been tested at a number of sites across the Weald but none have been put into production. Like HH, at the nearby Brockham Field the well drilled to test the Kimmeridge is to be used to produce the Portland.

Whilst posters come up with excuses why the Kimmeridge isn't being flowed I suspect the main issue is pressure and rapid decline - to be expected in a fractured carbonate - and also as seen in the Portland fractured sandstone. Brockham had the added problem of water ingress from fractures - given what has happened to HH-2z in the Portland it's possible that in time that would be the fate of the Kimmeridge at HH, though only dry oil has been produced to date in testing.

Fracking an already fractured formation is unlikely to be successful if not damaging so not sure why posters keep on quoting snippets about fracking shales for gas which has so far only been hoped to be viable, as the testing was abandoned, in the Bowland Shale in the North of England.

As for posters suggesting the government would fund risky wells beggars belief when the company has 'spaffed' tens of millions of pounds already (for NSTA latest production averages of less than 60bopd and more than 30bwpd) and SS is quite happy to dilute shareholders to pay for the excitement of drilling.

TH2,

The only thing that's ramping up...... is the ramping.

Ocelot,

Maybe the millstone of the hedge attached to Angus's financing put potential buyers off - and those expecting a multi bag price forget that the purchaser wants to make a profit so won't offer anything like a NPV valuation and a fraction of rampers favourite valuatikn reserves times today's price.

Not sure reminding the board that Sanderson is planning to spend money on something in the US. The last international venture isn't going too,great for something that would 'expose the company to potentially transformational recoverable oil reserves that can be rapidly monetised.' Nearly 2 years and a failed well that was targeting outside of the structure from a site possibly not suitable for a sidetrack sounds like the transformational prospect wasn't as big as expected.

It was at the 'mid' and there were plenty of trades above the mid all day.

Seems to be the sum of 3 earlier trades 9,999,999, 9,999,999 & 2,100,000 - make of that what you will, but toing and froing of trades at the mid and spreads conveniently changing around largish trades (relative to the general size of trades) can disguise what is really going on.

Buys and sells can be above, on, or below mid so although a guess can be made when trades occur at similar times at differing prices it really isn't possible to declare a late trade at a price that has been the mid most of the day a buy or a sell (although it will be one or the other, only known to those involved in the trade.

Legalease,

May be a buy for you but the spread at close was 0.115p to 0.125p, as it was for the majority of the day - trade was at 0.12 so at mid, not above, or below - but as I point out it seems to balance 3 earlier trades anyway.

Ocelot,

"This is welcome news. We look forward to hearing of the Operator's plans for enhancing productivity and delivering on the inherent, and to date largely untapped, value of the Horse Hill Oil Field."

Does that mean that up to now, with what is years of data, UKOG haven't presented a 'plan' to enhance production etc? The statement reads like a comdemnation of the operator.

But how many years have posters been repeating the statements in RNS as if they are realistic outcomes rather than hopes or expectations.

I'm still trying to think of one that has come to pass as expected. To those that think it's all in the past and we should forget what has happened previously the results of all the previous wells at HH, Loxley (Godley Bridge), BB and even Basur-3 (plus the multiple previous wells at Rsan/Basur and E Sadak hardly mentioned by UKOG) all do have a bearing on the likely outcomes of those projects.

Ready,

those that know what they're doing sold their equity to UKOG, or got them to pay 100%.

Legalese

Regardless of the detail have any of UKOG/ SS predictions come true? UKOG does have a habit of just 'forgetting' rather than admitting it's failures.

I wonder what of the current 'plan's will never be mentioned again?

Did you see the sample of old seismic data over Resan / Basur in AME's last annual report.

Improvement is not a very high bar, and encouragement not exactly encouraging when you're relying on SS's 'view' which for Basur-3 was drill the sidetrack before the new seismic

Now Resan-6 may be drilled first

'Loxley then government funding, watch this space.'

No chance.

It'll be the thousands of 'owners' who share the 16.29 billion shares who will have to pay with dilution - why would the government fund exploration by overstretched and underfunded micro-oilers who keep messing up?

Legalese

If fracking started tomorrow would UK fracked production be sufficient to influence world prices? That's not to say fracking shouldn't be tried but it would be unwise to suggest it would lower prices for gas in the UK.

This is what Kwasi Kwarteng tweeted at the time of announcing the review of shale gas fracking:-

'Kwasi Kwarteng@KwasiKwarteng
Feb 28
The wholesale price of gas has *quadrupled* in UK and Europe.

Additional UK production won’t materially affect the wholesale market price.
This includes fracking – UK producers won’t sell shale gas to UK consumers below the market price. They’re not charities.'

As for UKOG they have no licences covering areas containing a shale suitable for fracking for gas.

Ian12,

'Loxley then government funding, watch this space. Gla.'

Watch what space - the nearly empty one that reads 'UKOG funds for onshore UK'. with 'plans' for 3 UK wells (HH-3, HH-4 & Loxley) and possibly a sidetrack at BB, at least Arreton is no longer in the schedule

How many years have posters hoped the government would 'fund' UKOG, this time for what is effectively an exploration well for a relatively small structure - if UKOG have mapped it correctly.

It'll be the thousands of 'owners' who share the 16.29 billion shares who will have to pay - by dilution upping the number from already enough shares for about 2 for everyone on the planet, maybe SS thinks that should be 3?

Alternatively UKOG might farm Loxley out but that would mean dilution of a different kind - but it would share the risk which unfortunately UKOG so far shown an unwillingness to do - or was it they couldn't find anyone willing to share the risk. Even Basur was funded 100% by UKOG to earn 50%.

gwilliams,

But UKOG has serially sat on significant news although at least some posters were capable of realising that periods of silence and lack of detail in RNS were sure signs that things were not going to plan.

One of the latest was the problem drilling Basur-3.

In the most recent scout report AME gave 'completion date' for Basur-3 as 18 July presumably some time after the problem occurred - UKOG announced it 2 August.

When UKOG went silent for a month about Basur-3 progress many here suggested there were problems - vs those claiming all was OK.

Incidentally, in other news, the open offer was under way during July, ending 26 July. 'Luckily' most of the time the offer was open the SP was below the open offer price but nevertheless about half a billion were sold.

TH2,

Unless you can explain otherwise the only way you can make money here is by tempting 'investors' with fantasy predictions to buy so you can sell for instance........

Wizard, hiss hiss hiss - are you a snake?

You should have paid heed to the warnings you so regularly claimed were wrong instead of regurgitating UKOG PR claims wrapped up in RNS.

The oddest thing is you still seem to believe (and repeat) the claims made years ago despite the reality of UKOG's failure to deliver those claims one after the other.

Ocelot,

It isn't intriguing, it's downright deceitful.

Having ensured a delay to further activity at HH by applying to perform the conversion of HH-2z to a water disposal well they now might do it in 2022, or maybe not.

Perhaps the cost of conversion now isn't justified economically - after all when the application was (according to UKOG) much higher production was expected and possibly only limited water. But the original application was withdrawn and the new application made when production was around 100bopd.

UKOG will have assessed the NPV going forward with and without HH-2z disposal conversion costs and disposal,savings and perhaps the numbers don't stack up with only about 60bopd and the strong possibility that even with relatively minor disposal costs the production cannot be increased significantly because of the continuing need to prevent overwhelming water influx as happened with HH-2z.

Or perhaps he's hoping (praying) Resan/ Basur will take the spotlight off HH during 2022 and it can be quietly forgotten?

'They keep mentioning the Kimmeridge Oil Pool'

Don't they just. Like they have for the past 7 years, and yet current production from the Kimmeridge, despite HH and four other Kimmeridge tests, is zero. Got to keep the believers believing.

Wizard,

I dread to think how often you have hoped that just round the corner things would improve over probably the past 5 years.

Where do you get your 200 to 300bopd for HH -1 production - UKOG have never given their expectation of post injection flow rates, though when have they ever been right. You can't possibly think any of the figures previously given have any relevance now after 2 years of proven declining production.

Ocelot

Re: your June natural gas contract post

Perhaps you could give an estimate of the amount of sales gas UKOG will have then.

A hint - none, and the same for many months to come

don't be silly only if there were zero costs Adrian. $200,000 (your calculation) is revenue. Water to dispose of plus all other OPEX costs.

Not a lot of change left. What's left in the kitty reserved for a Turkey cashcall?

Gideons,

You are the liar. You are multiple banned poster - starting with freeasabird and then many attempts to rejoin this board.

I've posted previously that admin have obviously decided not to ban you so to continue claiming you're not Adrian must have an ulterior motive - perhaps being able to cross recommend your tweets here and your posts on twitter.

To continue with the deceit I ridiculous