Member Info for Penguins

Sam,

Instead of endlessly raising cash that has been wasted over the years maybe the board / SS could demonstrate how wonderful the hydrogen site/s are by actually getting a partner, investor or preferably selling equity in UKEn that enables investors in UKOG to see that what UKOG has done wth the millions raised for the hydrogen projects has been well spent - though a considerable amount has already been wasted on developing the Portland Port plan that's now abandoned.

What about proving the valuation of HH and selling it - though perhaps the overdue accounts might show no value for HH as they never bohered to have a CPR with reserves.

A bit of belt tightening wouldn't go amiss either - rather than the previous short term salary reduction and SS's forced share purchase (£12,000 for what is now 1,245,731 shares worth at 0.01p ca £125 - a 99% loss) a long term salary reduction with share options replacing salary at, say, 1p a share - then the board would be aligned with share holders rather than the current worse than laissez-faire attitude to the SP - actively reducing.

'Trolls will doubtless be active on this board in the time running up to the meeting, on 02/09, but we all know full well their posts can have no effect.'

I'm sure you and TH2 will be very active trying to assure everyone what a brilliant move issuing potentially 20 billion shares and more than doubling the shares in issue will be to pay the salaries until 2026.

Whilst no one has a clue what the accounts will show (apart from it will be bad, how UKOG intend to pay for abandonment of BB and restoration of the site. What UKOG intend to do with HH or how the location of the potential storage site West of Weymouth fits with the governments hydrogen strategy that so far has favoured northern England. No mention of progress with the Yorkshire site and how that would be selected vs the Centrica and SSE offerings for storage. No mention more importantly of the board sacrificing salary for worthless shares while the company is such an obviously perilous position that they have to pack the voting at meetings.

Iluvsushi

the nominal value/price is 0.0001p = £0.000001

They changed it at the previous consolidation because the price had fallen below the nominal price.

The giveaway is they only need to spend £18,249.13 to issue 18,249,134,666 shares.

After placing or CLNing those they can then make the EBT up to 10% again which will be an extra ca2 billion because they can add 10% of what they add.

So soon to be ca 38.5 billion shares - though at the AGM or next GM they'll probably consolidate

Janiax,

the 10% of shares in the EBT gets them over the line - they'll probably have to raise using a CLN for cash.

No one on the curret board has ever voluntarily bought even 10 shares - tells you everything you need to know about the company's attitude towards the SP despite kind words in the fantasy tales known as the Annual Report.

And not forgetting the last 2 placings.

Placing 19 November 2024:-‘......as well as helping materially advance the Company's overall hydrogen storage portfolio towards applications for DCO and Government Revenue Support in the First Hydrogen Storage Allocation Round, now expected to launch in Q1 2025.

Additionally, the Company continues in advanced discussions with an energy infrastructure investor regarding participation in UKEn's current Dorset and new Yorkshire projects. We look forward to providing further updates in due course.

Placing, 21 Feb 2025:-

• Operational expenses related to the HSBM Procurement process and bid submission.

• General and administrative expenses.

Additionally, the Company continues discussions with several energy infrastructure investors regarding joint venture participation in the Company's South Dorset and Yorkshire projects owned by its wholly owned subsidiary UK Energy Storage ("UKEn"). We look forward to providing further updates in due course.

It makes it easy to write the next 'use of proceeds' - maybe they could just reference the previous one...........................

For once ocelot is probably right – without authorisation for issuing another 18+ billion shares (as predicted following yesterday’s RNS) the auditors won’t sign off the accounts.

But what would any raise be for? It’s like groundhog day.

Placing, 12 Jan 2024:- ‘As the Company intends to submit a bid for an allocation award for its material hydrogen storage project in Portland, Dorset, the round's timetable now necessitates an acceleration of specific unbudgeted studies/works during 2024. The Company is also in discussion with a significant international trading house with regard to its participation in the Company's hydrogen storage project.’

Placing 10 July 2024:- The remaining funds will be used directly to further the Company's material hydrogen storage projects by enabling the completion of necessary internal and external technical studies and reports required as part of an application for government Revenue Support in a first allocation round, currently scheduled to commence in Q3 2024 and complete by year end (see RNS 29th May and 27th June 2024).

The funds will also permit the Company to fully prepare and engage with further prospective strategic partners to seek, as a minimum, Letters of Support (" LOS") along the lines of those recently furnished by Sumitomo and SGN, such LOS being a necessary requirement for any successful allocation award (see RNS 29th May and 27th June 2024).

Placing 5 August 2024:1 ‘The funds will also permit the Company to further negotiations with identified prospective strategic joint venture partners and conclude a land option agreement for a further hydrogen storage site. The Company will also seek further Letters of Support for its Revenue Support application similar to those recently furnished by major energy and UK hydrogen infrastructure players RWE, Sumitomo and SGN.

The Portland Port site was discarded as unsuitable – no LOS have been obtained since August 2024, they have been ‘negotiating’ (contacting?) with partners/funders for a long time flitting from one to several at each placing.

How much of any funds raised will be for salaries – twiddling their thumbs from now until some time in H1 2026 when the government will intiate the hydrogen storage round that will almost certainly see the allocations going to northern England – and whilst UKOG appear to still be negotiating a site in Yorkshire there’s major companies with advanced plans for hydrogen storage ready to go, with the funding to do it.

...and the elephant in the room – site restoration definitely for BB, and uncertainty over HH’s status.

UKOG has never put forward a realistic forward plan – always based on baseless hope - or no plan at all

TH2,

Since its inception in 2014 the only awards were 80 million shares in 2015:-

'During the financial year ending 30 September 2015, 80,000,000 new ordinary shares were awarded to employees and consultants' although that was the first mention of these awards in 2019 in the 2018 Annual Report and Accounts.

It was then almost forgotten after 2019 until they appeared to need the votes at the GM in 2024 to confound the wishes of the private investors.

If anything the EBT holding 10% of the company is misaligned with the private investors but certainly aligned with the directors who know that only 5 to 10% of investors will bother to vote and even if a significant majority vote against resolutions the EBT holding will ensure the directors get their way.

I've since reread the abandoned meeting RNS and although there is an explanation it doesn't specify exactly what the problem with the resolutions were:-

'UK Oil & Gas PLC (London AIM: UKOG) announces that as a result of shareholders' questions, it is in the process of taking further advice in relation to the capital reorganisation and the associated resolutions proposed at today's General Meeting. Consequently, it decided to adjourn the meeting for the time being. Further announcements detailing a new date, time and revised voting instructions in relation to the adjourned meeting will follow in due cou

I suspect they wereaware the voting was against them and found an excuse to adjourn the meeting. The subsequent award of 3 billion shares to the EBT before the reconvened GM certainly appears dodgy.

TH2,

Perhaps an example of 'This is usually very good for private shareholder since it aligns the interests of the directors and employees with the shareholders.' might be useful.

Problem is it's just a ploy to ensure that unpopular resolutions get passed at GM/AGM.

It will certainly make sure when UKOG ask to issue another 18 billion shares it won't be voted down.

Perhaps you forgot this sequence of RNS.

16/02/2024 13:54 General Meeting Adjournment - abandoned without explanation why - probably because there weren't enough votes in favour

22/02/2024 16:37 Employee Benefit Trust Share Subscription - prior to this the EBT had 250 million shares -which was reached in September 2019 - they added just over 3 billion to reach the 10% of the 32,539,926,104 shares in issue

23/02/2024 13:01 Notice of General Meeting Resumption - wonder why?

Not the employees, the trust.

But it seems they can issue shares to the trust beyond the number authorised by shareholders.

They must have realised that with only ca 5% of the shares there was a risk of losing some votes.

Still don't get that they can issue shares to the EBT they don't have authority for.

Apologies for implying HH has any value:-

'when their only assets are HH, which is unlikely to have negative value.....'

should be:-

'when their only assets are HH, which is likely to have negative value......'

Ocelot,

PPP was (and currently still is) a complete mess (convoluted?) - hyping Tunisia, hyping rubbish wells in Texas, hyping a Horse Hill Farm-in, and hyping the unproven commercially of lithium extraction from oil production waste water which seemed to be the basis for the ramp to 9p+ a share, funded mainly through 2023 and up to the suspension last year by placing ca 60 million shares borrowed from holders when there were only ca 100 million in issue - the guaranteed eventual dilution never brought up by the LSE ramp brigade. None of which gives the impression of a serious company doing anything apart from funding salaries, though the current 'team' claims they aren't paid.

As for UKOG I suspect (hope) that apart from the false hope generated by UKOG's utterings about their projects that all the placings and other past financial dealings were above board and properly executed.

What may be the issue is going forward with zero cash flow and a substantial committment to restore at least Broadford Bridge.

There's no authority left to issue shares until a GM and though getting approval to issue 100% more shares is guaranteed with the EBT's holding even a placing of the possible 17 billion shares at 0.01p (£0.0001) would raise 0nly £1.7 million.

But who would take an assurance by UKOG they could successfully place 17 billion shares when their only assets are HH, which is unlikely to have negative value, and a lease on farmland west of Weymouth with the only a flimsy plan needing approx £0.8Bn to turn it into a hydrogen storage site that isn't near where the government is currently prioritising hydrogen support - nor a pipeline.

TH2 has suggested the accounts are delayed because UKOG is 'expecting' (expecting = hoping, likely not happening) private backing for their hydrogen storage - further delay must eventually see UKOG running out of cash - if backing doesn't materialise will the accounts ever be issued?

Trish,

It's revenue support, which the article makes clear towards the end, not 'government funding'.

It's down to the companies to sort the funding out - as ocelot mentions the revenue guarantee that the government will allocate to maybe two companies of those applying should help with obtaining funding from other sources. Unfortunately for UKOG that means they would have to commit huge amounts to the project before UKOG applies with zero certainty of having a project selected for an allocation of a revenue guarantee.

Not sure any company would want to offer a funding guarantee to a company that has repeatedly over estimated the likelihood of success in a field they were supposed experts.

TH2,

so it's OK for the company to delay, not because the audit is taking time but because they're hoping to snag an investor - having failed to get one for at least 18 months - and in your opinion, despite evidence to the contrary, get some government support for hydrogen storage that the government has clearly stated won't be decided until next year at the earliest, and will be revenue support, not cash up front.

As an investor would want to decide how likely UKOG would be able to apply for support and make a risk assessment, once the government releases the storage application information not due until next year, as to whether UKOG would be in with a chance against Centrica (Rough) / SSE & Equinor (Aldbrough)/ and probaibly EPP (Mesh) + possible others.

As a committment to fund UKOG for about a billion pounds would have to be made for an application if some funding was offered now it's likely that it would be ring fenced to UKEn so UKOG would require funding just to honour its committments at BB and HH.

I would guess if there are any other applications in the south of England they would be for depleted field storage, and if there was anyone interested in salt caverns, as UKOG hasn't exclusivity to the salt basin, somewhere nearer the Solent.

The problem is, ocelot, that UKOG goes from talks with 'an' investor back to touting it around presumably a diminishing pool that haven't seen it already.

'discussion with a significant international trading house' in January 2024

'negotiations with identified prospective strategic joint venture partners' in August 2024

'advanced discussions with an energy infrastructure investor' in November 2024.

'continues discussions with several energy infrastructure investors' February 2025

Couldn't find any mentions before that, but came across this gem - the reasons for the '3 million funding facility' in June 2023

'The funds will fully fund working capital necessary to progress the Company's key planned activities over the next 12 months, which include:

· Turkey: further testing of Pinarova-1 and further drilling preparations/studies

· Loxley gas discovery: discharge of planning conditions and preparations for site construction, plus a potential farmout to cover the planned appraisal and development programme,

· Horse Hill field: water reinjection work-over, preparations for 3D seismic acquisition and drilling Horse Hill-3 under the previously announced farmout to Pennpetro

· Portland hydrogen storage (UKEn): Planning application work and conceptual engineering studies.

A list of one failure (Pinarova testing) and 3 that went nowhere - wonder what happened to the cash - though it ended up only £2 million as the 2 'committed' £500,000 tranches weren't taken - or was it given?

'UKOG's problems are not those of PPP'

But clearly there are problems, and it looks like it's more than just the auditors getting up to speed. What happened for UKOG to 'expect' the accounts to be published before the end of July at the end of June but a month later extend that expectation by over a month...and it is only a plan - and UKOG's plans usually don't work out:-

'.......now plans to publish its audited 2024 Annual Report and Accounts along with its Interim results for the six-month period ended March 2025 no later than early September 2025.'

If it is early September the yearly accounts will be 11 months old, and the interims over 5 months old.

Ocelot,

Take off those rose tinted glasses.

There will be limited awards of price guarantees - in the December 2023 first round industry engagement paper it was two projects. When the first round is launched (again) it's unlikely to be more - and the government at that time said (surprise surprise) it would be cap and floor regulatory framework - perhaps that's why Centrica are seeking it?

A green light for Centrica would suggest major companies that are experienced in the market with storage projects near production and demand are more likely to be awarded an allocation. Given the delay since the initial first storage round announcment there may well be other large players considering applications.

The risk and reward for investors will be difficult to assess with hydrogen demand uncertain beyond heavy industry and whether competing energy storage technologies might be cheaper .

The government's delay in restarting the first storage round introduces more uncertainty as to their support for hydrogen storage and - Centrica lobbied the overnment to include depleted field storage as an acceptable medium and according to EPP it will be included - if the cost of revenue support is lower for depleted field rather than cavern storage that may also determine what projects may in future rounds be more likely to be awarded revenue support.

Trish,

'East Midlands'.....'St Helens' - as posters with a bit of sense keep pointing out the government is focussed on the northern half of England (by definition East Midlands are not South) where convertable industrial demand exists and where they have supported hydrogen production. Creating storage in Dorset will be a long way down the list, let alone dealing with a company as precarious as UKOG with a long record of failure.

TH2,

Fantastic news.

Not sure even an expensive single hydrogen filled cavern is needed in a remote location like West of Weymouth though.

Probably not.

Sad that ocelot appears to believe there is some equivalence between the joined-up Mesh project incorporating hydrogen production, storage and most importantly it’s close to industrial demand and infrastructure, and the recently invented DCESC (Dorset’s Clean Energy Super Cluster) and their yet to be identified west of Weymouth site.

Another difference is that EPP intend to use a depleted field for gas storage rather than having to create caverns, an expensive option.

Whether UKOG has the wherewithal (and seriousness) to engage a company like Siemens is another question.

'and yet ukog did have a bright future'

Thought I should add to that .........

Really?

So the locals were responsible for the water influx at HH that lead to HH-2z never being put into production and HH-1 being uneconomic (or barely economic) after 4 years of declining production. UKOG were aware that the Portland reservoir was fractured after the 2016 testing but never mentioned it again until the HH-2z initial testing results.

The locals were responsible for the failure of UKOG to develop the Kimmeridge. UKOG quietly got a report produced by RPS in 2019 - following that they didn't deepen HH-2 through the Kimmeridge, didn't sidetrack HH-1 into the Kimmeridge nor dual complete it. 21 months after getting the report the Kimmeridge resources at HH were revised from ca 10 billion barrels of OIP to ca1.5mmbbls contingent resources. The UK was never going to get oil independence due to the Kimmeridge oil - the EY Report was fantasy based on what UKOG told them.

The locals were responsible for BB never being put into production because during testing they recovered hardly any oil to surface - though you wouldn't know it from the RNS UKOG put out - but unfortunately for UKOG the testing report is now in the public domain and it makes dire reading.

The locals were responsible for the supposedly transformational Basur drill being in the wrong place (and despite the lookalike field producing poorly), or the Pinarova well proving that the Kezer well 400 metres away (and updip!) was a good indication that there was no oil pool there, not UKOG'S hope that oil near the surface in a shot hole over a kilometre away came from there.

The locals were responsible for the deceptive Loxley CPR that presumably didn't fool anyone into farming in.

I think that covers what happened to the bright future - the posh snobby locals.

.....or was it that UKOG's hopes presented as possible outcomes were never going to be achievable.

And yet ukog did have a bright future

Ocelot.

Suggesting that Centrica seeking funding for a £2bn project to convert Rough which depends on the award of an allocation of revenue support (of probably only two in the first allocation round) is the same issue that UKOG is beset with ignores the difference in size, track record in gas storage, project location relative to the governments record of HAR allocations and abilities of the two companies.

'Centrica has a £2bn project to develop Rough but is unable to do anything until the government takes a decision concerning the revenue framework.'

Yep, it's just because UKOG is waiting for the certainty of getting an allocation.

I'm sure those international investors are lining up to underwrite UKOG's ambition with zero previous experience to construct a billion pound gas storage facility in a salt interval unproven for cavern creation, distant from any funded hydrogen production, or significant industrial areas, requirng a dedicated pipeline just to reach the national hydrogen network when it finally reaches the Solent area, on a site west of Weymouth - having failed abysmally in a field of their supposed expertise.

Pull the other one.