Member Info for Penguins

Wizard,

They did do an EIA, but the regulations were interpreted at the time that they didn't need to assess the end-use combustion emissions. The Supreme Court has determined that it should have done. They can retrospectively now do this to set the planning 'right'. But UKOG had full planning in place until that decision and chose for years to do nothing - a useful cover for the likelihood that the reservoirs at HH are not that good, and in all probability drilling further wells would be uneconomic if the results were similar to HH-1 or HH-2z as is probable.

In the planning application it is listed as '07/12/18 Environmental Statement' and in the contents there's a whole chapter described as '2. Environmental Impact Assessment Methodology'.

If anyone should recompense pi it's UKOG for the deceptiveness of the RNS and tweets. Though those you, amongst others, constantly accused of being (at best) negative somehow saw through the BS with details of what UKOG were avoiding mentioning - the more likely outcomes - that the Kimmeridge was not a decent reservoir, that UKOG were being selective in the results of the HH testing and the Portland was going to decline fairly quickly and never produce the daily volumes claimed, that there was the possibility of hitting water filled fractures - that Turkey was more like E Sadak than Kurdistan and the structures complex and thus drilling risky without seismic, that the whole story about Pinarova was ridiculous, as was the wait for bigger guns.

Perhaps you should now be quiet as you were one of the many that tried to swamp and discredit any attempt to point out the failings in what was being reported or planned.

Insidious,

'That’s all the bad news out of the way.

So there won't be another raise despite UKOG only getting about £150,000 of the half million raised this time - so is UKOG guaranteed to get an allocation when the government announces the awards next year when LOS appear to fall far short of the requirements to win an award? UKOG recognised the likelihood of waiting for the second round, from the Annual report:- 'Success in this, or even a subsequent second allocation round'.

But the lack of bad news with UKOG is no guarantee that things are going well - as many have discovered over the years, and what might be the good news without a raise?

Couldn't fund a new drill in Turkey even with the cheap drills there.

Couldn't afford to convert HH-2z.

Complete silence on the PPP farm from both sides (now out of time) that wasn't a full carry except for the obligation seismic? Was relinquishing PEDL 246 an acknowledgemenof that the seismic obligation work programme as required wouldn't be done - partial relinquishment the penalty for failure to carry it out?

A farminee with a full carry to Loxley where Star just gave up 10BCF of supposed resources by relinquishing their licence next door?

It will be just more blather about Portland Port gas storage and a mystery gas storage project oop north, or maybe the 'good news' will be selling off the family silver, those transformational E&P O&G projects before Portland Port was THE transformational project - the reason most pi are here with the hope of near term gains from exploration success - not long term infrastructure project/s with massive up front investment that would likely see UKOG diluted to a miniscule partner.

Ibug,

Look on the bright side they can stuff the Employee Benefit Trust with about 400,000,000 more shares to more or less guarantee any authority to issue more shares (or anything that may be against the interest of shareholders who have paid in the market for shares) at the GM gets passed.......

Not sure I've got this right but because it's at the nominal value (lots of noughts after the decimal point) it will only cost the EBT a few hundred quid - which the EBT will 'borrow' from UKOG so will appear as a debt in the accounts - all good.

£500,000 cash raised.

Less fees (6%) -£30,000

Amount of principal loan remaining -£210,000

Amount of 4.5% premium on each drawdown added (4.5% of £1,790,000) - £80,550

10% repayment fee on outstanding balance (£290,550 x 10%) -£29,055

Total to deduct from £500,000 = (30,000+210,000+80,550+29,055) = £349,605

So only £150,395 left or just under 6 months SS salary, those LOS need to be a bit more than encouragement from the sidelines

These funds are only to continue with the funding of the Portland gas storage project that won't have any near or medium term cash flow, the minimum success of spending this cash though is getting more worthless letters of support to accompany the application for an allocation in the first round. However it is almost certain that any hydrogen storage capacity in southern UK is probably not required for decades, if ever, so may not be a first priority for government support.

For anyone who has invested in UKOG for short term gains through exploration success the game is surely up. With little cash to spend on Turkey, HH or Loxley none of these can advance without farming out or being sold - and none are attractive propositions except maybe for a company operating in the same over promoting vein as UKOG.

Even Star has given up waiting for UKOG to farm out and drill Loxley, UKOG surely can't fund any work at HH and AmE should be concerned about UKOG's ability to answer cash calls - not sure of the full Basur Resan licence terms but looks like the 'exploration phase' expires next June and failure to drill the full well programme did come with penalties.

'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.'

Ibug,

This in the GM (and all the AGM / GM notices) means despite saying the authority runs out at the next AGM / GM there's a get around for any 'unused' authority:-

'.......and provided that this power shall expire on the conclusion of the next annual general meeting of the Company (unless renewed, varied or revoked by the Company prior to or on that date) save that the Company may, before such expiry, make offer(s) or agreement(s) which would or might require equity securities to be allotted after such expiry'

You would have to assume they've entered into agreements to issue shares after the expiry of the previous authority ar each new allotment.

Just reread the testing report and the 70bbls was the amount of fluid produced before any oil came to surface on about 14 October, half way through the 16 day test. The well then produced 46bbls of fluid up to the end of the test - a total of 116bbls of fluid with an overall 1% oil cut. So the oil cut was either 1% for the whole test or about 2% once oil was produced. Neither being particularly great.

This is a company that treads carefully the line between outright lies and misleading commentary - often by omission - during the BB Kimmeridge testing making the honest statement that the well, during a prolonged test, produced sweet light oil, which they showed being poured, but somehow forgetting that the oil cut was between 1 and 2% which is detailed in the testing report - eventually producing over 16 days one barrel of oil with 70 barrels of water - maybe the SP wouldn't have risen from under 5p to nearly 6p on 16 October 2017 if the oil cut had been mentioned?

Sadly UKOG are much better at weasel words in public uttering than successfully executing their claims. Solid interest could be anything from a indication they want to visit the data room to wanting a meeting but not something more positive like entering into negotiations, which I suspect UKOG would be tweeting multiple times like the barely positive LOS from companies probably asked to write some non- committal following a meeting.

This is a company that treads carefully the line bet

So UKOG reckon that Star are giving up up to 10BCF resources which if UKOG drilled and were successful Star would have a low risk well to prove and book resources.

More like they see Loxley for what it is, a high risk well that's unlikely to be a commercial success with a flawed CPR that UKOG have had a significant amount of meddling in.

At one point Star were proposing to drill in their licence and posters (and tweeters) were expecting them to farm in to Loxley.

The gas storage project at Portland is a completely different project, multi million is a bit of an understatement, expected to cost hundreds of millions.

Jamrock,

almost, no not almost always - always these larger trades are sells by the the CLN holders, believe otherwise at your peril. I'd put money on a RNS with a conversion of either 245849456 or 243059360 shares, or maybe the sum of these.

They've made good money on the shoulders of the P&D, you'd almost think it was planned.....

65,000,000 late reported sell at 0.0243p, someone will probably be very happy depending on what the conversion price was / will be - where's the conversion RNS?

Ocelot posted:-

"The £300k required to pay-off the loan ..."

Deltavegatheta, the outstanding balance of the loan stood at £0.21m according to the RNS of 21/06.'

Ocelot seems to have forgotten that there is 4.5% of the value of the conversion added to the loan, all UKOG report is the amount of the initial loan of £2,000,000 remaining - unfortunately ocelot hates to see facts about UKOG posted on the board so filters those that he can't reply to because his knowledge of O& E&P is minimal - and apparently his memory of the conditions of the CLN loan.

Strictly speaking the 4.5% currenly totals £80,550 being 4.5% of the £1,790,000 of the principal amount so far RNS'd converted into shares - but when the last conversion of the £2,000,000 is made the total added to the loan will be £90,000.

From the quote £3 million funding RNS:-

'The principal amount of each Advance is deemed to have been established with an accrued premium of 4.5% on the relevant drawdown date (i.e., a fee of 4.5% is incurred on each drawdown which will be added to the principal sum to be repaid).'

Ocelot won't see this post so will keep thinking how smart he is..........

Nomlungu,

there have been a few larg(ish) trades over the last four trading days. Not necessarily CLN shares, but previous similar size trades, whether labelled as buys or sells, have preceded a CLN RNS. As of the last RNS there was £0.21 million remaining to be converted of the £2 million gross first cash sum received last June – but there is still the 4.5% of the value of each conversion added to the loan, when the £2 milion is paid off there will still be £90,000 of loan to convert – so £300,000 to go, but no new cash to add to the £952,000 left at the end of march 3 months ago.

That £300,000 would see around 1 billion more shares at 0.03p, but the next conversion is likely to be at a far lower price with recent vwaps likely to be below 0.02p.

As for the £952,000 - if they’re still paying the staff that’s about £500,000 gone (2022/2023 salaries etc £2mm) plus all the consultants working on the Portland gas storage project. There is income from HH and Horndean of about £100,000 after costs. Presumably everything else is on hold, though some costs will keep accruing, and AME may send in bills. There is the possibility of the warrants coming into play though the lowest conversion price so far would mean a buy price of 0.02828p for over 82,508,251 shares adding £16,666 to UKOG’s ‘pot’, so not that significant.

Next conversion likely soon, but how long can UKOG delay the next raise, and at what price, and probably authority to issue less than 2 billion shares?

Balancedviewer,

'“She was very supportive of our hydrogen storage project at Portland in Dorset,” said CEO Sanderson.'

........a few kind words of encouragement from a minister who's about to lose the job doesn't necessarily translate to any meaningful support for a project, though not sure what this sentence even means:- 'I would suggest which ever Government backs Green projects will charge a levy to repay the Tax payer.'

Charge a levy -the government is more likely to be subsidising storage (the governments refusal to do so sunk the original proposal) or raising prices to fund it - there won't be any money coming back to taxpayers.

Balanced viewer,

perhaps you could identify any supposed good news that has eventually happened?

The best so far is HH-1 which was going to produce 362bopd, with no mention of decline. It never averaged that amount and rapidly declined to averaging less than 100bopd.

Broadford Bridge - transformational, national importance - testing was dire, didn't get round to applying to redrill/retest, now planning for retention refused.

HH-2z - supposed to produce 720 to 1080bopd. It never did, overwhelmed by water production and is currently suspended waiting fo UKOG to be brave and convert it to an injector

Basur-3 - transformational target was missed as structure non existant

Pinarova - all sorts of claims, P&A'd after long delay.

All of these were supposed 'good news' when they were announced - only to disappoint or completely fail.

To criticise anyone that has previously been negative about supposed 'good news' suggests that it's you that's the troll.

IBug,

50% water cut!

Not sure that finding a series of high risk prospects, some already drilled and undeveloped is being 'dogged', more of a snake oil salesman / grifter vibe - claiming outcomes that have little or no chance of happening one after the other.

Broadford Bridge billions of barrels of oil, testing dire - but deceptive RNS;

HH thousands of barrels of oil a day, has water issues, before the news is fully revealed;

Basur-3, claimed like Kurdish mega fields, missed target, more like next door field with non SPE reserves quoted without qualifying;

Loxley, CPR with mistakes and warnings - but UKOG meddled unrisked NPV quoted;

Pinarova - stalled the final result for about 9 months to retest an untestable interval;

now all cash raised being spent on gas storage project (and salaries) dependant on government largesse - what could go wrong.

Dogged - of course with other people's money, if SS took his renumeration in shares would he have been so dogged continuing to promote these 'dogs'?

UKOG can't wait until they run the bank account down to zero, so with £952,000 left at end March they are now approaching a point where they need to raise more cash - not sure a lender is going to accept a couple of LOS as collateral - even if SS thinks pi should.

Note they've renamed the RNS'd '£3 million funding facility' as a '£2 million facility' reflecting that the 2 'committed' tranches of £500,000 weren't provided, which party to the deal decided it wasn't happening?

Otherwise there's a lot of talk, but no action - with the sort of BS ocelot & co like to repeat as if it's fact rather than hope, or more likely fiction.

As for 'Energy was lse's top performing sector of the day' that perhaps reflects the state of the other sectors, especially as UKOG was 4th. Maybe investors don't think Labour is such a problem?

Insidious,

With the interim accounts due (the annual accounts due end June for some of the subsidiaries have already been lodged at Companies House) and the 'big' sell yesterday perhaps signalling another CLN RNS in the near future being 'in this' over the weekend may not be the greatest advice.