Member Info for Penguins

Why no big rise?

If anything todays RNS appears to suggest UKOG doesn't expect the Portland Port gas storage to make the cut for the HSBM first round allocation - essential to get government cash as soon as more than a year away.

The Portland Port project was announced over 2 years ago - there was already lapsed planning permission for it and there was a borehole confirming the suitability of the salt for cavern creation. Though it was to be used for natural gas.

Having this head start UKOG raised several times that included getting surveys, studies and reports on the site - including the last raises which apparently, because the allocation round was brought forward, meant multiple items not already done needed to be done urgently.

Now they are apparently pursuing 2 sites, presumably brown or greenfield, with no previous planning and quite probably no adjacent borehole or any previous work to accelerate the development which at Portland Port with a lot of groundwork already in place doesn't look to be ready 2 years on.

As others (and I) have pointed out if Portland Port was a slam dunk why waste effort and cash on another site in Dorset (or Yorkshire) - is it because Portland Port is far from a slam dunk - despite the 3 LOS, that funnily enough could be applied to any site, anywhere.

However the one positive is that H2 storage is an uneconomic business requiring subsidy and guaranteed surcharges - a business model UKOG understands having never made a profit except from selling shares in the 10 years since DL initially took charge.

I thought the interim use of Portland port would be storing LNG with a terminal capable for docking LNG carriers, then green H2 produced by excess electricity from a large offshore wind farm. I get the feeling, as so often with UKOG, that there's a lot the company is hiding by this distraction - is it because they've realised that Portland Port storage plan won't make the cut for the first round - is SGN not applying in this Transportation round? are other requirements not achievable? This new Dorset site can't possibly be ready for a first round application, maybe UKOG will sell the idea that submitting three applications for a later round will mean a better chance of one succeeding, or perhaps can't progress all three - drop one - Portland port? as the new site is so much better - thicker salt, shorter connection to the Solent......etc

Otherwise is the plan to have up to 40% of UK storage in Dorset?

This RNS raises lots of questions including is the Portland site not that suitable for an economic development of the salt caverns because the salt isn't thick enough.

There was at least a test drill through the salt at Portland in 2006 - is there one at, or very near this new site or will that be an early necessity? and what's happening with the Yorkshire site?

This has echoes of the Kimmeridge fiasco - buying up acreage before knowing if it works but unlike O&G exploration anyone could come along and lease a site nearby - no need, if there's a proven need for all this storage in Dorset, to partner UKOG.

Ocelot,

Presumably there will be ongoing work in Turkey cashcalled by AME as it is done as they haven't completed the obligation work programme of 5 wells and the exploration licence ends June 2025 with a penalty for undrilled wells, from the July 2020 RNS: -

'The exploration phase expires in June 2023 but can either be extended for a further 2-years, or in the success case converted directly into a 20-year production lease. The Licence's 5 well commitment to the Turkish government has a gross monetary equivalent of $7.66 million (UKOG $3.83 million), however UKOG understands that should any of the commitment wells not be drilled, a modest penalty of c. $30-50,000 is payable to the government'

They also may be late submitted invoices or ongoing post well studies, but whilst posters keep insisting Ed will provide there are almost certainly other projects in the hands of companies who can demonstrate the financial ability to perform the work, and have a transport 'partner' lined up and applying for the HTBM allocation round in more industrial regions - this realisation may be why UKOG is interested in a site in Yorkshire (not ready for the first HSBM round) and suggested they may not be selected in the first round (UK Oil & Gas Plc Annual Report 2023) - in contrast to some posters here.

But until UKOG appeal the rejection of the extension to the BB site, restoration is a liability they need to prepare for, and, as ZYX points out, the decision to abandon the well may be made for them sooner as UKOG show no inclination to use the well.

As for maiditup - a 9000 post poster pretending the buys vs sells isn't a fantasy when it's wildly skewed, able to be distorted by the selection of the spread, and employing the deception that the SP is being held back rather than the market dictating a lower price. True colours clearly being shown by the evening crew with BS stock phrases.

1villian,

no need to hurry, the train's been taken out of service and the doors already locked, driver Steve's gone AWOL since 8 August when only a quarter of the (golden) tickets were sold for the ride to Portland port as customers realised they could probably buy them for less a couple of weeks later. Unfortunately those who got on the train are locked in for another week clutching their tickets hoping Steve will make an announcement over the PA (surelyPR) that anpther nice man has written a letter saying how great Steve is at driving the train and they'd love to help......one day.....maybe.....perhaps on a different train in a different station - just like before, one even said they'd definitely come and check the connections to the rails when they're laid (oops another reason the trains stuck, no rails) so other trains could use them.

You keep saying the ticket price will rise or moan about those on the platform pointing out that for years Steve has taken the train out of the station and then reversed back in again as the planned track laying has never happened to the various transformational destinations, though most passengers jump off and wait for the next bargain tickets rather than stay on the train waiting to get back to where it started - or even further back in the sidings.

I think that's flogged to death.......

Maidit,

'and there after UKOG will be a different animal with series of good news landing at anytime on this national significant project for the UK.'

Depends what the ‘good news’ is. UKOG is ‘seeking’ more LOS but how genuine are these letters when all they seem to be is a list of what that company is doing, and by the way they might use the storage – in Dorset or Yorkshire – if it suits.

What’s needed is an indication from a pipeline company they are applying for an application for an H2 Transportation allocation that’s ‘associated’ with the Portland project. Without an associated Transportation application the Portland storage project doesn’t meet the base requirement to succeed in the first allocation round - but SGN who do have an outline plan for ‘H2connect’ in southern England don’t seem to be doing that.

Even with a pipeline proposal the storage / transport would be ranked against other applications which could be proximal to industrial areas of Scotland, north east and north west UK - or possibly S wales.

As far as after the GM as ‘support’ for the resolutions at the GM is practically guaranteed (rigged) with few pi voting (mostly traders) and 10% held by the EBT voted in favour - not sure getting through the GM makes any difference,

Fantastical,

no, I didn't say 'you cant short' what I posted was 'as far as I'm aware it isn't possible for pi to borrow UKOG shares to sell'. I have asked those that claimed anyone who wasn't positive enough was a shorter how a pi could do it - and no one has so far answered - and looking it up on google just gets me to betting, not shorting.

Ocelot,

Assuming you can short, or even get a bet taken, wouldn't it be wiser to wait for a spike and then short UKOG, quite often UKOG have taken advantage of P&Ds (maybe helped them happen?) and get a placing away? I know there's a load of posters on here that recommend buying on a spike so maybe there's shorters that recommend shorting during all time lows though I've never seen it.

Sam,

Apologies, perhaps I should have explained - you and others keep claiming posters are shorting and as far as I'm aware it isn't possible for pi to borrow UKOG shares to sell, which in sufficiently large volumes may affect the SP negatively. But I suspect it's just a throwaway remark to try to undermine posters whose opinions aren't positive enough.

Not sure it's wise to hold UKOG until a hoped for 'positive' event, but I really do hope it works for genuine investors - it would be the first truly successful UKOG venture if it happens.

Sam,

I'm still waiting for trading experts to to give details of how to short UKOG - you? Deltalo?

I would be delighted if UKOG were successful but the concentration on the LOS while avoiding mentioning what is required for an application to be successful just echoes all the previous projects that failed whilst suggesting all was well up to the 'failure' RNS. Confusing predicting failure with wanting or causing it seems to be a theme with certain posters.

Whilst waiting for deltalo to explain what is 'about to be announced from the Government any time now' and perhaps you explaining what signature you're just waiting for 'to get us across the line', consider this from the timeline:-

'Q4 2025

• Government approvals

• Successful projects announced

• Contracts are awarded'

There won't be any granting of government cash until the contract is signed.........and that's only if the storage and transport allocation applications for Portland Port are ranked in the top 2 of applications in early 2025, and that depends on there being a transport application, so far unmentioned by UKOG.

Deltalo,

To help anyone reading your post could you be more specific about what is 'about to be announced from the Government any time now' and where 'the Government' state it in regard to gas storage

I'm only going by the published timetable for the allocation round for storage and transportation where the 2 'winners' will be announced Q1 2025 that then have to negotiate terms and pass due diligence(!). There's likely to be stiff competition from pipeline projects in NW & NE England and possibly South Wales (ie industrial areas) connected to local salt cavern storage projects.

Bigfoot,

Assuming UKOG get through the stages then government cash doesn't look like it will be forthcoming before Q4 2025.

Here's the government timetable going forward for the first round of H2 Storage alocation in the 'Hydrogen Storage Business Model – Market Engagement'.

Q3 2024

• First HSBM allocation round is launched

• Engagement with stakeholders continues. This may include requests for further information from applicants or interviews to support assessment of applications

Q1 2025

• Shortlisted projects are announced

Q1-Q3 2025

• Bilateral negotiations between shortlisted projects and government, due diligence conducted by government

Q4 2025

• Government approvals

• Successful projects announced

• Contracts are awarded

So UKOG will only be able to apply in the first round in Q3 2024 if there is an associated transportation application in the HTBM first round. HTBM = Hydrogen Transportation Business Model

If that happens they then (as a pair) they have to be one of the top two ranking paired Storage and Transportation applications.

This from the Market Engagement:- 'Our ambition for the first allocation round for hydrogen transport and storage infrastructure is to support up to two hydrogen storage projects, at scale and associated regional pipeline

infrastructure.'

Then there's a period of negotiation Q1 to Q3 2025 which should lead to a signed contract in Q4 2025 that presumably would unlock some government cash.

Anyone claiming governement support in the near term perhaps has avoided doing any research.

Maidit,

Interesting you don't like posters who have both a different opinion to you, and are willing to point out errors or misconceptions in posts that could be misleading to others.

Every now and then I'm asked why I'm here - and the simple answer is I became interested, for reasons I won't go into when the Gatwick gusher was first being publicised in April 2015 and fascinated how deceived people could be by company statements, and how certain posters were certain that if they repeated what UKOG said they were right because UKOG knew more than anyone else. Although that should be true the company seemed to only promote the best possible outcome, and is quite capable of making out oil was flowing from both BB-1 and Pinarova when the pictures of samples tweeted were a significant part of the total oil produced

Over the years you could say it has become a pastime postulating the most likely outcome vs what the company claims (and thus some posters), and debunking some of them - and with that knowledge I do trade this share which is prone to completely unjustified rises in my opinion, not always successfully as the bottom is hard to call- although at least I'm not dismayed when UKOG eventually RNS the results of their ventures as I'll have sold at least most of my holding - just like most traders who might have previously claimed guaranteed success becoming wary of UKOG claims.

Currently UKOG appears to have forgotten all the claims they've made about HH, Loxley, BB and Turkey - solely focussing on Portland port and the first H2 Storage allocation round.

But whilst some posters appear to want to imply that government cash will be forthcoming soon or that the LOS are important without an associated H2 Transportation Business Model application any number of LOS with kind words won't avoid UKOG being unable to apply.

Until UKOG RNS that SGN, or any other pipeline business, has applied in the transportation round to build a pipeline to Portland everything else is a distraction from this glaring ommission as only applications for storage with an associated transportation application will be considered as both are needed for the cohort ranking, and whilst SGN have an outline proposal for a pipeline the extract UKOG show from the LOS didn't mention it was in an advanced stage with an application in the HTBM round, the support UKOG needs.

Ninetails,

Amazing they still bang on about shorting. I asked if one of these trading geniuses / legal experts could explain how a pi could short UKOG - so far no answer.

Maidit

UKOG's 'debts' prior to the CLN being paid off were being paid with shares - a deal struck in June 2023 - before that, and before that when the prevous CLN was paid off in June 2020 the company was also debt free as the SP dropped from over 0.2p in June 2020 to the June 2023 SP of around 0.057p. In fact whilst failing to make a profit since 2014 UKOG has been debt free for most of those 10 years. If UKOG made any profit maybe debt free would mean something, but in UKOG's case it just means when they want to do anything including paying SS and the rest of the BoD and staff they sell more shares, and so far placings have been at less than the prevailing SP.

Ian12,

I think you'll find that the gas transmission system is indicated by poles with yellow caps (iirc) so they can be easily followed by helicopters checking the system. They would be more worried about someone accidentally digging through it than 'obvious reasons'.

As for RWE - if they had a pipeline system in the UK I suspect it would be mentioned on their website as I pointed out - but apparently that was a mistake - and it was SGN who have natural gas pipelines in Dorset. Until natural gas is no longer used domestically they won't be used for pure H2 transmission. The H2 Connect pipeline would be a new route requiring new way leaves. But that also extends to the east of the Solent and also towards Oxford and Reading - so which bit has highest priority for the Solent Cluster

Fantastical,

'They also have a huge gas pipe line network in the south of England including Dorset.'

Perhaps I've missed it but looking at their website I can't find any evidence they operate any pipelines in Dorset, or any regional pipelines - or any anywhere in the UK of any size.

Could you give a link to your source of this information.

The gas network in the UK is operated by National Gas Transmission who say 'We own and operate the national gas network'.

Jlovie,

There will be no governement money soon. The best that UKOG can hope for is a bending or change in the requirements detailed in the document that sets out what's required, and being allowed to 'pitch' (if that's the word) for one of the two places in the first H2 Storage Allocation Round. Though that will not mean UKOG is guaranteed to then go forward early next year to the negotiation of the contract - expected to be signed Q4 2025 - which I suppose may be when the government will offer some financial support.

I would recommend reading the 'Hydrogen Storage Business Model: Market Engagement on the First Allocation

Round' here:-

https://assets.publishing.service.gov.uk/media/6579fd330467eb000d55f783/hydrogen-storage-business-model-market-engagement-on-first-allocation-round.pdf

UKOG will probably pass most items in the 'list of criteria' but the financial requirements may be difficult:-

'The Applicants should provide any of the following documents. A document from both part A and part B must be provided.

Part A (pre-FID):

• Confirmation of the ability to reach FID from existing liquidity sources (equity)

• Letters of support from the board of equity shareholders

Part B (post- FID):

• Confirmation of the ability to fund post FID from existing liquidity sources

• Letters of support from debt providers

• Proof of engagement with financiers for support post FID'

.....................and in the 'Proposed transport and storage cohort assessment' section:-

'Purpose of assessment

Our ambition for the first allocation round, as set out in the Networks Pathway document, is to allocate support for up to two storage projects at scale, with associated pipeline infrastructure. These projects should be in construction or operation by 2030. It is very important therefore for storage projects to have a corresponding project providing pipeline transport: for storage projects in Great Britain this means an associated transport project seeking HTBM support.' - HTBM = H2 Transport Business Model.

The question is are SGN in the process of applying for HTBM support as this is essential - without a transportation application the Portland Port project will not be considered. If SGN (or any other pipeline company) applies in the HTBM round the applications will ultimately be considered together:-

'Step 1: HTBM and HSBM projects that progress to the cohort assessment are combined to create a cohort of transport and storage projects, ranked according to their scores from the individual business model assessment processes

If SGN have not progressed the pipeline sufficiently / don't want to apply in the first HTBM allocation round (perhaps wary of UKOG's progress) UKOG wouldn't even be considered in this round, so any government funding would be even further

Yeeyee(?)

Consolidation was at mid price 0.0065p so equivalent to 0.065p

Placing was for 0.05p

Current mid price 0.0545 - so maybe not 35% down but 17.5%

But to get back to 0.065p a rise of 21% required.

As for a reverse takeover UKEn has less cash than UKOG, but maybe SS (with his savings from his salary from UKOG) has plans to use UKENHolding Ltd (his 100% company) to buy, in an agreed deal, UKEnergy storage 100% owned by UKOG. SS shareholding in UKOG that cost £12,000 a little over 1.2million after consolidation worth £645.

fantastical,

maybe read the placing RNS:-

'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.'

Seek - sounds a bit like asking......

and that extract from the LOS

Very interesting fantastical - it's pretty much what was in the 31 May 2022 RNS announcement.

Apart from diverting almost every penny raised (not spent on salaries) from the O&G properties to the Portland Port project what have they achieved?

3 LOS, but with the allocation round scheduled for Q3 (nearly half way through) there was the latest £1mm raise for this:- 'The Placing's proceeds will be directly employed to further specific activities required to materially advance the Company's hydrogen storage projects. Specifically, it will permit the Company to initiate essential new studies, including but not limited to environmental surveys, engineering studies and other works'

What have they been doing since May 2022 apart from issuing encouraging RNS and tweets, and not forgetting badgering companies to send a LOS?

Oops.

Should be

HH-2/2z - the Portland horizontal failure

HH-1z - the much promised never drilled Kimmeridge horizontal

HH-1 dual completion in Portland and Kimmeridge - also never done

Maidit,

would that be similar to those that come on to this board posting claims like, tomorrow 0.15, to encourage others to buy, or maybe posters acting in concert when there's dozens of posters, posting repeatedly, making claims about the price reaching all sorts of higher levels - and then disappearing, except maybe a few spiked traders eh?

More of a problem than anyone posting on this board is that UKOG doesn't seem to police, or perhaps provide tighter rules regarding, the disposal of their shares by the CLN holders or participants in raises who have huge numbers of shares seemingly entering the market prior to the market entry given by UKOG.

As for shorting I'm still waiting for one of these self styled legal and trading experts to identify how or where a pi can short by borrowing shares to sell.

But everyone must have noticed the 'ruin a lot of SP' by UKOG issuing RNS admitting failure after issuing encouraging RNS that posters like ocelot, TH2 etc copy and paste multiple times encouraging buying while other posters point out that the likelihood of ultimate success is very low - and explain why.

As you're making claims about the past here's a reminder of the many projects that have failed , only been a minor success (only HH-1) or not even been embarked on - yet UKOG issued positive, even sometimes issuing RNS claiming transformational or of national importanc announcing them.

HH-1the Gatwick gusher

BB-1/1z -the Kimmeridge across the Weald failure

HH-2/2z - the Kimmeridge at HH failure

Multiple wells planned in the Weald and IOW not advanced at Markwells Wood, Arreton, Baxters Copse, Holmewood/A24

Turkey - Basur-3, Basur-4 (no longer mentioned), Pinarova-1 (wait for testing dragged out for at least 7 months when it was obviously a dud)

Loxley preplanned farm out announced over 2 years ago, now with a last resort farm out company

HH farm out to PPP now in indeterminate suspension - last time over 3 months

....and finally so far dozens of tweets and a few RNS (and raises) bigging up a plan to reviitalise a salt cavern storage plan that failed previously because the economics required subsidy. Now seemingly still uneconomic requiring government cash and subsidy through guaranteed (by government) storage tariffs.

Fantastical,

Shell's main area of H2 business infrastructure appears to be mainland Europe - Holland and Germany - and then US, China and Japan. not sure getting involved in a stranded (until an expensive pipeline is built) storage facility in Portland would be of any interest.

Ibug,

to save posters searching this seems to be what they're doing in the UK vs the ventures in mainland Europe building stuff,

'United Kingdom – Aviation

Shell sees a potential opportunity for hydrogen in aviation. In December 2020, Shell invested in ZeroAvia, a hydrogen start-up, which has been conducting test flights in the United Kingdom and working towards hydrogen fuelling for commercial flights of up to 500 miles using 10- to 20-seat aircraft and commercial jets able to carry up to 200 passengers 3,000 miles.'