Member Info for Penguins

Isthisawinner,

but the question is when will another storage site be needed?

Do you expect UKOG to 'win' revenue support in the first round in competition with the Humber Hydrogen partnership which includes NG, SSE, Equinor and Centrica?

and if you do, why?

Th@2 posted:

'The Minister will be aware that major hydrogen projects in the Humber area, including those led by National Gas'

Unfortunately TH2 (and ocelot) obviously isn't aware, having filtered anyone that does research other than UKOG's hype, that the major projects led by National Gas are SSE and Equinor's Aldbrough and Cantrica's Rough hydrogen storage, not UKOG's concept of an idea of site.

TH2,

Storage in the south won't be needed for a long time, if ever, and that's surely the reason that no other company has bothered to secure a site over the subsurface salt layer in the south. A few reports and heads of terms for a site hardly trumps any competent and experienced company that could lease a site as UKOG has done in E Yorkshire though without the competence, experience and possibly the lease near Aldbrough.

This is essentially what TH2 is trying desperately to kick start:-

'Watch this multi-bag on pending government announcements. GLA'

Not success, doesn't care what happens next (a dump), just a SP rise before the government announcements which will surely dash any hope that UKOG will be able to apply in the first storage round.

I'm surprised UKOG hasn't rushed a meeting to approve more share issuance - maybe they're happy what's left of the £5 million will cover salaries until they can hype HH (again)?

MOU's are just a non-committal expression of 'if you do 'this' we might do 'that' unless we don't........

TH2,

'Latest : National Gas told to convert the East Coast line to carry hydrogen!'

'They have a signed MOU with UKOG for the essential salt cavern storage'

But National Gas have announced they are in a partnership with SSE / Equinor and Centrica - the 'big boys' of gas storage in the North East that are planning to provide hydrogen storage in the Humber Hydrogen partnership which will connect storage to production and demand.

NG not 'told to' connect anything in the south.

Is NG going to support UKOG's concept of a storage site over a partners already existing and already in the formal planning process to expand for hydrogen storage at Aldbrough?

From Humber Hydrogen's home page:-

'To achieve this, the network, through projects Humber Hydrogen Pipeline (HHP) and Aldbrough Hydrogen Storage, will submit proposals under the UK Government’s Hydrogen Transport and Storage Business Model processes to determine where the first hydrogen network is built. This will establish the future of hydrogen in Great Britain.'

https://humberhydrogen.co.uk/

The MOU with NG fooled investors last year and enabled UKOG to raise £5 million - don't get fooled again.

Just this from TH2's post should sound alarms:-

'Ambition: The initial goal is to support up to two large-scale geological storage projects to be either in construction or operation by 2030.'

Currently we've not been informed whether the Dorset site has progressed beyond 'Heads of Terms' or the East Yorkshire progressed beyond being negotiated. The likely reason is they haven't, and the possible reason is that UKOG don't want to be shelling out rental for sites they aren't likely to need for the first hydrogen storage round when SSE / Equinor are already progressing planning in the NE for an extension to Aldbrough for hydrogen, and could convert some of their current storage to be ready for 2030, and Centrica lobbied for depleted field storage to be included in the round and presumably have a pathway to enable Rough to store hydrogen by 2030 - so the NE appears to already have two credible applicants for an allocation. It's debatable whether UKOG could have even started their storage development in the south by then - though any need for storage in the early 2030's on the South Coast of England seems unlikely - on user UKOG have mentioned is ExxonMobil and they appear to have Fawley Green Hydrogen (EDF) hoping for HAR funding to produce hydrogen to supply the refinery.

Zilch trades because they're waiting for an opportunity to average down further - or engage in a pump - either bad news or good news works for some posters.

Question is will the next RNS/X be a hyped MOU, hype about Horse Hill, hype about a government announcement unrelated to UKOG's ambitions - including the launch of the storage allocation round, or more likely pleased to announce more shares (nearly 2 billion) for the EBT to ensure votes in favour at any future (possibly announced the same day) AGM / GM.

......if they read the articles they and their 'pals' quote / link (ocelot, TH2, Trish, Bigfoot), as surely they don't filter them, they'd have realised that the news about hydrogen is predominantly about activity / funding for projects in the north of the UK.

The only company banging on about storage in the south, and not just the south but the south coast in the middle of nowhere, is......... you've guessed it.....UKOG.

While UKOG has ambitions in the north with an identified site any application for revenue support by UKOG will be trounced by applications by SSE/Equinor and Centrica who are in partnership with NG - yes NG who signed a 'collaboration' MOU with UKOG 'initially' for the E Yorkshire site.

TH2,

Stop claiming there will be government funding for storage. The last the government said on the subject was they were minded to provide a cap and floor guaranteed revenue support for those selected to proceed to negotiate the terms.

Whilst UKOG may have the only currently planned site in the south of England the reason there is no competition is probably that any competent operator is aware that the storage round allocations will be to support storage in the early 2030's as currently there is no significant production planned, no significant demand likely, and no infrastructure planned in the south, and the government is currently supporting hydrogen projects mainly in the north and east of the UK and South Wales so Project Union is likely to reach London and South Wales connecting to northern storage and production before reaching the south coast.

As for this:

'National Impact - Could meet up to 17%–31% of the UK's forecast hydrogen storage needs by 2050'

Apart from pointing out it won't be needed until 2050 I've been here long enough to remember the boasts about the Kimmeridge, providing up to 27% of UKs oil demand:-

'Mid scenario is around 170,000 barrels per day 12, and in the High scenario over 330,000 barrels per day 13, representing approximately 14% and 27% of 2014 UK daily oil demand respectively.'

TH2,

Posting something twice doesn't make it any better, nothings changed since your first post.

'Guess where they'll be storing all that Hydrogen'

Hmmm, let me guess.......in SSE / Equinor's Aldbrough site or possibly Rough - maybe even EPP's storage as UKOG isn't on the starting blocks in the north (have they really got a site, or more of a concept of a site?), and South Dorset is nowhere near any planned early 2030's hydrogen production, demand or transport.

........ and by the way NG might have signed a MOU with NG - SSE / Equinor / Centrica are in a partnership with NG called Humber Hydrogen - whose storage site/s are NG likely to support?

TH2,

'Guess where they'll be storing all that Hydrogen'

Hmmm, let me guess.......in SSE / Equinor's Aldbrough site or possibly Rough - maybe even EPP's storage as UKOG isn't on the starting blocks in the north (have they really got a site, or more of a concept of a site?), and South Dorset is nowhere near any planned early 2030's hydrogen production, demand or transport.

........ and by the way NG might have signed a MOU with NG - SSE / Equinor / Centrica are in a partnership with NG called Humber Hydrogen - whose storage site/s are NG likely to support?

UKOG @UKOGlistedonAIM

UKEn: Positive progress to hear that Energy Secretary Ed Miliband has given go ahead for National Gas to construct 420km pipeline to carry hydrogen gas on the East Coast, to designate it a Nationally Significant Infrastructure Project.'

Unfortunately NG are in Humber Hydrogen a partnership including the operator of Aldbrough gas storage site and the operator of Rough - I wonder why could it be because storage projects need a transport element.

No mention of progressing Project Union to Southampton, or will it be to UKOG's site in South Dorset?

It doesn't matter if any project going forward is likely to be successful, just as long as UKOG is prepared to ignore any probable problems when they RNS their 'expectations'.

These are then repeated here, X and anywhere else as certainty and often embellished - with those repeating the story as if UKOG is being conservative when in fact they have always been outrageously positive.

Not sure how they are going to 'spin' an HH restart (as of earlier this morning the planning application wasn't on the SCC planning portal) but probably no mention of production rates of water and oil prior to shutting the well in over a year ago, and no mention that after a long shut in any initial production rates will be short term, with almost certainly a rapid drop off.

Will water injection using HH-2z be promoted again having failed to do it multiple times - probably because of the high risk of it quickly damaging oil production rather than enhancing it.

Will producing from the Kimmeridge be suggested whilst never having got around to it after several alternatives were meant to be happening after Portland production commenced. It would be useful for investors to see the June 2019 RPS report on the Kimmeridge. Whether it was a coincidence or not following that report no more work (apart from testing) was performed to either investigate or put the Kimmeridge into production - and 21 months later in the 2021 ARA published March 2022 (iirc, the UKOG web site link to Financial Statements didn't work) they dropped the pretence of 10 billion barrels OIP, replacing it with ca 1.5mmbbls 2C (contingent) resources.

Another well? The last time this was proposed they were prepared to give away 49% of HH-3 production (and the rest of the licence) to PPP for acquiring 12 sq Km of seismic (first) and then drilling the well (spending max £4.6mm before UKOG would pay their share) - the need for new seismic hasn't disappeared - although PPP might have.

Maybe hype about another 4/5 wells and the 3,000bopd production facility.........

Then there's this:

'They have made several studies that salt caverns are the best solution from every point of view.'

Yet they have delayed (re)launching the first transport and storage rounds, originally launched in December 2024, the latest incarnation being H1 2026 - which is hopefully going to be Q2 2026.

The funding model is revenue support with a cap and floor - ie a guaranteed minimum price for storage but also a cap not in what can be charged but a level above which the government gets a share of the tariff.

But cavern storage is expensive, takes a long time to create and may not be popular with those nearby (especially the 'nimby' South) - though there is already cavern (and depleted field) natural gas storage in the North either convertible or expandable for hydrogen.

Whilst no one else is proposing hydrogen storage in the south it may be because it isn't needed, certainly not in the nearish term, with like natural gas, demand covered by infrastructure without large scale storage in the South.

If in the future there's need for storage other operators could simply lease a site over the salt basin- for future storage allocation rounds, if there is one as alternatives either exist for short term storage of electricity, battery 'farms' or other cheaper alternatives are found, depleted field storage already a proposed cheaper alternative.

The usual BS from TH2, but this caught my eye:-

'The government plan to make an allocation to hydrogen storage.

Especially in the South, as usual.'

Only problem is that almost all support for hydrogen projects, either by some form of revenue support or funding, hasn't been in the South, it's been in the North. That coupled with the location of most windfarms and industrial clusters - not 'South' - suggests that the location favoured for hydrogen storage will be in the North.

TH2,

looks like AI doesn't understand the difference between investment and fooling investors with a false hope that NG were going to help with the E Yorkshire site's application (NG is partnering with companies already involved in gas storage in the NE), not the South Dorset site which, if it is ever needed with significant storage being planned by competant operators in the north of England, doesn't seem to be expected by UKOG to be on NG's connection list any time soon.

21/11/25 RNS:- 'This new work will be complementary to the collaboration with National Gas (see RNS 1st October 2025), which initially focusses on UKEn's Yorkshire storage opportunity.'

Nor does AI seem to realise that projections of price in pennies (check the UKOG broker ratings button above here) probably date from when UKOG expected the KImmeridge to be a continuous oil province - I note what TH2 didn't paste was the reliance also on production at HH, maybe AI can't find the production data so far?

BTW a SP of 4.4p would value UKOG at £1.6 billion with the current 36 billion+ shares =- though that's likely to be either decimated (possibly hundredths) or doubled in the future.

As for 'It could all unfold in the coming weeks and months.' - more likely unravel in the coming weeks and months.

Mimbrit,

you posted:-

In the ARA, Sanderson helpfully points out

“Project Union's first phase, currently targeted for operation by 2032, is expected to connect the East Coast hydrogen cluster, with envisaged routing also facilitating UKEn's East Yorkshire project.”

So, what are we going to do for income for these next 6 years?

That assumes that the government wants 2, maybe three, large storage sites in the NE in 2030, which is highly unlikely (not going to happen). NG the developer of Project Union is already partnering in Humber Hydrogen with the operators of natural gas storage sites in the NE with ambitions to add on hydrogen storage - these are Centrica, SSE and Equinor not dodgy opportunists.

Whether or not the routing of Project Union is changed the priorities as expressed by NG are connecting industrial clusters in the East Coast, North West, Bacton, Wales and Scotland. with hydrogen storage in the north being sufficient and expandable for some time. If South Dorset hydrogen storage ever happened it wouldn't be much before 2040, giving time for an established operator to obtain a site and apply for revenue support, though alternatives including batteries may supplant much of the (excess) electricity - electrolysis - hydrogen - generator - electricity element of hydrogen use and reduce the storage volumes needed for hydrogen.

I can't believe that any investor could be found that wouldn't be aware of the above and back UKOG in an application for revenue support, either for South Dorset or East Yorkshire, as committed funding for the storage project was required to submit an application in the original terms of the first storage allocation round.

Can't see the PM said 'very interested'.

From Hansard:-

'PM: 'My hon. Friend is absolutely right about making Britain a clean energy superpower. We are committing £2.3 billion to support hydrogen projects, and I recognise the huge potential of South Dorset to become home to a storage hub. We are ensuring that public and private investment work together, which is exactly what the Crown Estate Act 2025 does, unlocking significant investment, boosting offshore wind and kickstarting economic growth.'

As this was in response to a planted question by the South Dorset Labour MP it's questionable how much the PM 'recognises' the huge potential though it was an opportunity for the PM to talk about the £2.3 billion already allocated to hydrogen projects (none in south Dorset, or even close, and the Crown Estate and windfarms.

Not sure the storage round announcement will be good news for UKOG though.

TH2,

UKOG have on several occasions mentioned talks, even advanced, etc. with various types of investors / funders.

That none have 'signed up' suggests that far from being lined up they have said no thanks.

TH2,

I'm afraid NG is playing with the 'big boys' now (see below), the MOU is nothing more than what NG would do with any company enquiring about connections to the grid - if you hadn't noticed Project Union will terminate at Southampton and won't be going anywhere near south Dorset, and in the unlikely event the MOU with Wales and West utilities came to anything the connection would be in the opposite direction, though not sure they could afford the cost of a dedicated pipeline to storage in south Dorset when more regional pipelines are anticipated connecting South Wales to the Midlands and beyond.

As for letters of support - wonderful to have a bit of encouragement.

Seems your research is little more than copying UKOG PR - and it isn't 'partnering' with Summit - who are in East Anglia, not exactly well placed for any sort of cooperation with UKOG - and just in case you thought the letter meant anything:-

We understand that this Letter of Support is not a legally binding contract and is SEEL expressing an interest which may, in time, lead on to significant low carbon energy projects for the UK.

If NG's endorsement of the NE is anything to go by you may be very disappointed by any government announcement regarding the first Hydrogen Storage Allocation round, originally expected to be launched H1 2025, if you expect it to be positive for UKOG.

'SSE has partnered with Centrica, Equinor and National Gas in a bid to develop Britain’s first ‘hydrogen heartland’ in the Humber.'

Note:- SSE/Equinor operate the Aldbrough gas storage, Centrica want to be supported in upgrading Rough to store hydrogen.

and this from NG about Project Union:-

'Building this network will start regionally, based around industrial clusters in the East Coast, North West, Bacton, Wales and Scotland.'

No mention of south Dorset's industrial clusters because they don't exist.