Member Info for Penguins

'What’s their income ?'

A bit from Horndean as it hasn't sold (yet), nothing else except placings and loan notes - with 18 billion shares burning a hole in Steve's pocket it won't be long.....

Note that the Yorkshire pipeline is 'first phase' 2032, but UKOG will face strong competition from Centrica (Rough conversion to Hydrogen storage) and / or SSE & Equinor (Aldborough Hydrogen Storage) so unlikely to be chosen as both projects are advanced.

....but there's no mention of timing for the Southern part of Project Union (not phase one), and the South Dorset site was meant to be connected by a spur of the H2 Connect promoted by SGN.....

It's what isn't said in RNS from UKOG that's important.

As for no placing -they had £373,000 cash left at end March and a salary bill of £1.8 million a year. They haven't completed the sale of Horndean yet but have a £1,000,000 'credit facility' lined up - if that's a CLN the SP is headed only one way - if it is some sort of loan secured against future income anyone invested in ANGS will be aware that the terms can be a disaster for share holders

The bitters are buyers too you know...........and the rampers are now the sellers........

So.

Hoping to divest the restoration and abandonment of BB to Seraphi so they don't have to pay for that.

Still tight lipped about what production at HH was when it was shut in (and as they've never mentioned the declining daily average production figures of oil, and then rising water, for over 5 years why start now?) - ie over 50% water cut, 32bwpd and about 28bopd - and little clarity of costs vs income as they lump it with Horndean (note that 92bopd to 45bopd according to UKOG a slight decline!). Having done nothing about restoring planning permission for over a year they're thinking about doing it next year. Are they hoping to RNS a decent initial flow rate after a 2 year shut in, or is it just stalling the inevitable closure - hoping to hype a doomed storage application?

Hoping to conclude Horndean / Avington sale in October.

Claiming though that exiting Turkey was because of the new strategy (see above for HH) not because it was always a high risk low reward venture and not 'potentially' transformational. Even describing the complete f-up testing then re-testing Pinarova as operationally successful.

Plenty of repeated BS about the new hydrogen storage site - though it's nearly as badly situated as Portland Port and no mention of timing for all the other wonderful things meant to be happening - and only mentions of the Yorkshire 'site', no details.

Details of a £1,000,000 CLN - oops - I mean credit facility still to be released/ decided in October. But supposedly plenty of headroom to issue sheres as that is what UKOG does excel at:-

Number of shares March 2025 17,217,274,165......March 2024 2,109,637,610

Whilst claiming plenty of headroom for placings (at 0.01p £1,000,000 is only 10 billion more shares) with authority to issue about 18 billion shares the last CLN used up all the authorisation as the SP (as expected) collapsed and they ended up having to call a GM to authorise more shares to hand over.

Still paying themselves over £450,000 (SS ca £300,000) - has it not occurred to them that they are the largest cost now and need to take a significant part of their salaries in shares not cash, or just less cash.

No doubt the rampers will try and help out the first few loan note share dumps claiming, as they always do, that the large end of day trades are buys.....but the 'house' always wins.

Funny how certain posters 'hope' that the reason for any delay is good news when it has consistently been because UKOG are reluctant to issue bad news - sometimes never actually RNSing bad news - anybody seen any details of daily oil, or after May/June 2020 water, production at HH since this misdirection from 28 April 2020:-

'Consequently, with daily flow rates from production start at Horse Hill averaging over 300 barrels of dry oil per day ("bopd"),...'

In April 2020 average daily oil production, according to the figures released by DECC but provided by UKOG, was 243bopd.

Every well has had bad news delayed whilst posters here were claiming silence, or delay, was good news.

BB - test data (as opposed to suggestions in UKOG RNS) showed the testing recovered minimal amounts of oil and the 'reservoir' layers poor - UKOG for years kept saying they would return to keep Kimmeridge enthusiasts engaged.

HH-2z - water ingress must have been known a long time before the RNS of 23 December 2019

Basur - 3 AME listed as completed at least a week before UKOG released the bad news

Pinarova - avoided retesting for over six months when a quick (and cheap) redrill and test could have taken weeks

Now it's hydrogen storage's turn - how long did UKOG delay mentioning Portland Port was being abandoned for storage (they'd already signed up another site) after extolling what a great location it was and spending a lot of the raised cash not spent on salaries on site specific studies etc. - why no further mention of progress on the Yorkshire lease since last year when it was being negotiated?

Maybe this time........

Though never any discussion why these sites were likely to be selected over any competing applications for revenue support based on the criteria likely to be used in assessing bids - funding and proximity to early 2030's hydrogen production and demand - just chucking out big numbers like the 'billions' neeeded to build the facility, or the ultimate 'planned' storage volumes-, worthless LOS, and of course vague references to financing that never quite happens despite 'advanced' 'talks'.

PS not currently in the UK hence apparently posting in the middle of the night......

Before someone notices I've just looked at the link and the PMQs with the mentions of S Dorset was in March so just before UKOG went into suspension.

As for PPP a mess with lies about deals and opportunities amplified by posters and Xers who probably sold on the rises - what price it will return at, supposing PPP does return to AIM, is anybody's guess but certainly the 9p (which was reached on the back of lithium BS) won't hold - let's hope the next great thing, a Polish venture, isn't as suspect as UKOG's Turkish potential.

What were the odds that Starmer was provided with that response to the S Dorset (Labour) MPs question - 100%?

- and almost certainly wasn't aware that he was referring to a company that then (as now) was in suspension and had recently abandoned the storage project they'd been working on (according to their unupdated web page - Assets/Hydrogen) for four years.

As for the title of this thread - BS - it's not government backed as government backing, in the form of revenue support not up front financing, depends on a process yet to be re-started and if the criteria are the same as previously published UKOG 's South Dorset ambitions are unlikely to be selected being remote from hydrogen production or demand.

'Our dedicated subsidiary, UK Energy Storage (UKEn), has been working for the past four years on a £1 billion underground hydrogen storage project in South Dorset. This project boasts an impressive maximum annual capacity of ~30 TWh (approximately 1.0 billion m³ static storage).'

Mind you their Assets/Petroleum page still lists PEDL234 and the Horndean & Avington licences.

Did UKOG mention which year?

But seriously is it any surprise from a company that has never delivered anything except billions of shares of ever decreasing value - only rising on undelivered hopes of the success of obviously flawed ventures.

HH - The Gatwick Gusher that never was

BB - the Kimmeridge dripping with oil core that in flow testing produced hardly any oil

Basur-3 - the well drilled in the wrong place proving the 'discovery' well was on the culmination of a tiny prospect (also proving shoot seismic before, not after, drilling.

PPP farm in that never happened

Loxley with a flawed CPR farm out that never happened

Pinarova - the well drilled down dip of a well with shows that produced oily water at best - a location that guaranteed failure but hopefully an oil show that then took over 6 months to retest rather than a quick cheap redrill.

Then with yet another change of plan - Portland Port hydrogen storage remote from any government backed hydrogen production or major industrial demand - or any pipeline to transport it - abandoned for a site nearby equally remote.

Over £100 million spent - how many shareholders have made losses funding high risk ventures based on UKOG's hopes of 'potentially' transformational success (and the services of the ramp crew repeating them) without any proper assessment published by the company of the risks that surely UKOG was fully aware of?

UKOG hasn't apologised for failing to get the ARA out in 'early' September or updated when it might be ready - are they too busy trying to convince the auditors that there's still plenty of 'investors' out here wanting to blindly hand over their cash to whoever takes part in a placing - or maybe explaining why they haven't voluntarily 'invested' their own cash in UKOG shares?

Assuming this is a standard statement the auditors have to make (from the last audited accounts):-

'The forecasts prepared demonstrate that the Group will have sufficient cash funds available to allow it to continue in business for a period of at least 12 months from the date of approval of these financial statements.'

Then certainly the cash from Horndean and the ability to keep issuing confetti would have to be taken into account - but maybe not actually received?

Though as cash flow forecasts aren't something that UKOG releases it's impossible to determine how good they have been - though, as they constantly fail to accurately predict the outcome of their E&P (and more recently hydrogen storage - eg Portland Port) efforts, I'd expect it to be pretty poor - unless their internal expectations are very different to the ones they express in RNS and tweets / X.

It wasn't the first, from June:-

'The audit of the Company's 2024 Annual Financial Statements is now well advanced and the Company expects to publish the report before the end of July. The Company will then seek to publish interim results for the period ended 30 March 2025.'

and of course temporary in March:-

'Trading will, therefore, be temporarily suspended from 7:30 am on 1st April 2025 until such time as the ARA is published, which will be as soon as possible.'

But I expect getting the resolutions passed so the company can flog over 18 billion shares should mean this time it happens and the BS can continue - asap 5 months later.

2023 ARA:-

'Our loyal shareholders will hopefully be rewarded as soon as the Portland Port development consent application has been submitted in due course. ' = Portland Port site not continued with.

About Loxley, 'UKOG’s chief executive made it clear on several occasions that as soon as the field has been depleted of natural gas, the vision was for it to be repurposed to store around 1 billion cubic metres of hydrogen.' License relinquished.'

'Our portfolio in Turkey consists of a 50% non-operated working interest in the 305 km² Resan licence in southeast Turkey,

containing the potentially significant undeveloped Basur-Resan oil discovery plus further exploration prospects. This project is assessed to contain significantly greater discovered oil volumes than any of our UK projects and, if successful, offers potentially transformational growth for the Company.' Exited Turkey.

Didn't go back to 2015 when they handed out 80,000,000 shares that if not sold would be 8,000,000 - the remainder (49,000,000) ended up in the 250,000,000 when they remembered they first added to the EBT.

From 30 September 2019 RNS:-

'The Company was notified today by the trustees of the EBT, LGL Trustees Jersey, that they intend to subscribe for 201,000,000 new ordinary shares of 0.01p each in the Company, at par value per Ordinary Share at an aggregate cost to the Company of £20,100,.....'

Ibug,

I don't believe there have been any EBT shares handed out, remember that the pre consolidation shares have been consolidated so there were 325,500,000 after consolidation + the May, August and recent additions

Current holding is shown on the investors page of the UKOG site:-

UKOGCCN MUFG CORPORATE MARKETS TRUSTEES (NOMINEES) LIMITED 1,824,912,685 10%

So despite the submission to trading the trustees are credited with them.

250,000,000+3,005,000,000=3,250,000,000 becomes 325,500,000 after consolidation

325,500,000+476,897,760=802,397,760+62,087,925=864,485,685+960,427,000=1,824,912,685

Ocelot

But if UKOG didn't have the EBT shares the second resolution wouldn't have reached 75% and wouldn't have been passed, makes a bit of a difference having 1,824,912,685 shares voting for resolutions that you don't own.......the EBT is loaned the cost of the shares by UKOG.

With the requested authority to create another over 18 billion shares burning a hole in SS's pocket, with salaries to pay, it won't be long after returning to trading before cashing them in starts.

Ocelot,

If, with 2 billion 'votes' (10%) in their pocket to cast, they lose either vote it would be a massive vote of no confidence in the board, but if there is a significant vote against the resolutions the board should be mindful that all of those shares cast against will have cost more than 100 times their recent EBT top up (at the nominal price of 0.0001p each), and some 1000 to 10,000 (0.1p prior to consolidation) times more - and the nearly a billion EBT top up shares were obtained when nobody could buy shares as the share was suspended, and UKOG had used all the previous authorisation to issue shares.

So authorisation to issue 100% more shares means, with the board's determination to continually keep the EBT at 10%, eventually 110% more shares in issue from the current number when the authorisation is exhausted - with a total of 4 billion in the EBT - which of course can be allocated to staff and board members......can they then top it up to 10% once it drops below that, presumably?

The gravy train rolls on regardless of their inability to succeed at anything other than issuing shares.

The above numbers assume the inevitable consolidation doesn't happen before there are ca 40 billion shares in issue.

At least there will be plenty of shares for that 'top up' TH2

It will be interesting to see how many more than the EBT (Employee Benefit Trust) nearly 2 billion shareholding vote for the resolutions vs those against, TH2 alone must nearly match that as UKOG is always a 'topping up' opportunity because the share price is nearly always dropping.

Last time it looked like the BoD were going to lose a vote (early 2024) they cancelled the meeting and voting because of a question asked - but never explained what the question was or how it was resolved. At that time the EBT only had a smallish shareholding of less than 1% of UKOG.

What they then did was award shares to the EBT up to the 10% limit before re-running the next meeting and the resolutions were all passed.

This time they added nearly a billion shares to the EBT shareholding taking it to 10% the day before the meeting was announced - no coincidene.

Were they worried that their shareholders wouldn't be too keen on their brilliant forward plan of issuing billions more shares from a new allocation of over 18 billion shares to keep the lights on while they twiddle their thumbs waiting for the government to announce the re-start of the hydrogen storage allocation round when they can hype the building of a hydrogen storage site far from hydrogen production and demand in Dorset or building one where there (hopefully?) will be production and demand in Yorkshire but where there is already strong competition from major companies with experience in gas storage with established gas storage which can be converted or added to - Centrica and SSE / Equinor.

But not likely to hear anything that isn't already RNS'd - so no new news unless they put out an RNS before the meeting, and then it won't be new news.

It would be cynical if they issued the very late accounts today or tomorrow having failed to get them out before voting for the resolutions was closed.

Not sure that share transactions confirm 'SDCM came in later through a UKOG share purchase in the market and it looked like we had a decent partner with money'.

The transfer of the BB licence was accompanied by a TR1 with Celtique having 91,704,179 in August 2016 (just over 3%)

According to TR1 (on 23 Jan 2017) Celtique went from 91,704,179 shares (on 20/1/2017 UKOG SP 1.525p) to zero on the same day a TR1 showed SCDM owning the same number.

That does appear to be the start of the Bouygues involvement in the Celtique group of companies, though being limited companies the details aren't entirely clear. In March the brothers became the controlling shareholders in Celtique Energie though the UKOG shares were held in January by Celtique Energie Petroleum with Celtique Energie Holdings parent Company to both.

30 May 2017 BB-1 Drilling Commences SP 1.1p

31 July 2017 TR1 SCDM holding passes 5% fo 174,954,179 shares on 25 July (SP 7.36p) - though they probably participated in a placing as well as buying in the market.

10 October RNS - Oil and gas to surface (testing report - hardly any) and revised testing plan - removing the 'production completion' to test separate layers. SP 6.3p

12 October TR1 SCDM drop below 5% but still have 174,954,179 shares - maybe they missed an increase ar some point in the number of shares in issue which revised the %. Had they started selling and realised the error when they did the maths?

19 October TR1 SCDM down to 107,704,179 shares on 16 October SP 5.825p

20 October TR1 SCDM down to 90,204,179 shares on 17 October (SP 5.6p, as less than 3% no further notifications required

You'd have to search for a sale ending 4179 but I suspect they sold out rapidly after that.

So they did not start by buying in the market but obtaining Celtique's holding and they only started selling after drilling commenced - when and how they bought the tranche of shares that took them to over 5% is open to speculation but as I state above it was probably in part in a placing and perhaps they then deliberately took the holding over 5% as the SP was rising in July.

Whatever the brothers knew or were told about BB it's pretty clear that following the initial testing of BB-1z they started dumping their holding for a significant profit.

Just to clarify the previous licencees were Magellan and Celtique. Celtique ended up with a large number of UKOG shares because on top of their share of the deal Magellan owed them cash which they paid off with UKOG shares. Celtique were a subsidiary of SCDM 'the French' company and the UKOG shares were transferred to them. Celtique would have had a very good understanding of the licence and although SCDM purchased more shares (which at the time looked positive) they sold out before the results of testing were released - although UKOG didn't release anything that revealed how poor the testing was.

The French knew exactly how bad the plan was as they sold the BB licence and well site to UKOG but certainly played it well to UKOG's ramping the Kimmeridge (which yielded very little oil) and sold out.

Sadly this 'rug pull' brings into focus that these micro company's claims about collaboration, or alignment with, government aren't as encouraging as some like to think.

Just one example from each of EPP (21/10/24) and UKOG (21/08/24), but which is which?

Comparison RNS CEO statement:- Epp to UKOG, but which is which (I've removed the project name and company where mentioned)

‘We look forward to continued collaboration with government to develop these strategic UK energy infrastructure assets and to help make the 2030 UK power decarbonisation target a reality’

‘We believe ******** project is fully aligned with the UK government's strategic objectives for hydrogen storage and transporation and has a number of competitive advantages to warrant Government support under the HSBM.'

'Zak Mir is a chartist, not a fortune teller.'

BTW - just in case anyone isn't aware ocelot isn't and has never has been a fortune teller - just a paster of UKOG PR in the hope that just once it turns out to be true.

Why has UKOG management allowed the company to be in such a dire position that they have (again) presented a resolution that is for any shareholder a do as we say or we will probably ensure you lose your investment as we don’t have a plan to live within our means. For anybody that has been a holder for any length of time already significantly underwater watching raise after raise dilute their shareholding it's a real kick in the teeth.

Following their Kimmeridge failure at BB, Portland water incursion at HH and Turkish flop (all predictable) their hydrogen ambitions have finally brought the company to its knees – initially by ploughing all the cash raised into Portland Port and then not mitigating for the obvious heel dragging by the government over hydrogen storage – not helped by UKOG’s change in direction throttling funds for Loxley which may, even though risky, have brought some excitement (and opportunity to exit), and HH which may have improved production.

Whilst previous government hydrogen strategies and actual awards has shown little support for projects in Southern England this has not dissuaded UKOG from continuing to spend on the west of Weymouth site after the Portland Port site was abandoned for gas storage, though seeking a site in Yorkshire from early 2024 was surely because of the December 2023 HSBM paper which, whilst avoiding being geographically specific, made it clear hydrogen storage needed to be near ample wind power and thus potential green hydrogen production, and potential industrial demand – none applicable to S Dorset.

Whilst making much of LOS – letters offering encouragement though nothing of substance and an MOU with companies equally hopeful for government support the reality is that no company has offered any cash.

As for the GM the reasons for potential raises from issuing billions of shares is mainly organising meetings involved in getting LOS and MOU, or more negotiations that have so far failed to get a partner/international funding, but these should not require separate funding with UKOG being represented by those already on the payroll – but there is a pressing funding need - abandoning BB-1z and restoring the site – not mentioned, perhaps it comes under the heading ‘general working capital’ though probably the most expensive upcoming work, unless the HH wells are abandoned and the site restored.