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Ocelot,

'The GM resolutions will enable UKOG to raise more funds from the market'

First of all UKOG has either £0,66mm, £1.16mm or £1.66mm of outstanding loan notes that could be converted - and yes it's ridiculous that UKOG has declined to mention whether the two additional 'committed' tranches of £500,000 have been raken, and even though they were described as committed in the world of UKOG they may or may not have taken them.

But at the current level of SP £0.66mm is about 60% of the new authority to issue shares, £1.16mm is about 106% of the new authority, and £1.66mm is about 150% of the new authority.

So whether the GM authority to issue about 45% more shares will enable more cash to be raised, or just service the debt taken on and therefore cash already taken and quite possibly spent, isn't known.

Not exactly transparent - but that's not unusual unfortunately for UKOG.

But does ocelot really believe the Supreme Court judgement will do anything other than (hopefully) facilitate a P&D. It certainly won't solve the problems with the reservoirs at HH or magically help PPP who have gone radio silent about their workovers in the US with a SP half what it was when the farm in to HH was announced

As regards December production it was slightly up at 45bopd and water cut down at 43%.

When has UKOG positive news actually been positive news?

Every piece of positive news, even the Gatwick gusher tests, has proved to not turn out as positive as hoped, or positive at all. Yes there have been pump & dumps based on that, and other short term results, but most often just based on a plan to do something with decidedly dodgy partial and overly positive information about what was expected.

The hope now is something being announced before the GM - but whatever it is it won't alter the inherent technical risks of drilling another well at HH, nor the well at Loxley, or another well in Turkey, and the timetable for doing any of these will be late 2024 at best (if ever) with more seismic expected at both HH and Turkey and Loxley still needing planning conditions passed. However the Supreme Court decision isn't scheduled for next Wednesday, for HH PPP have gone radio silent about their workovers, Loxley High Court decision was in UKOG's favour in early January, and given it's been available for 18 months no takers so far - of course alternatively it could be more tweets about providing Southern UKs storage needs in.....in....in..... 2050.

But with a rise based on a small value of shares inbalance (with Mr 75 million not joining in the selling at the end of the day, and I nearly put volume but with a per share value in thousandths of a penny there's plenty of volume) - the opposite could be true when the traders lose their nerve and start selling - because it won't be 'investors' buying for even the medium term - with a short term expected to be filled with massive amounts of CLN shares being shifted.

Posed this question:-

'How will the share respond IF tomorrow at 11am the Supreme court judgement is scheduled for next Wednesday?'

I suppose it depends whether like some you believe that the reason UKOG has done nothing except for workovers of HH-1 for 4 years is because of the legal challenge or that the extensive testing, result of HH-2/z and the decline in production of HH-1 has indicated that the risk of drilling a Portland dud is high - and not getting a CPR done, something that enables 'booking' reserves but has to be published, continues with the secrecy about what is happening in terms of the Portland reservoir at Horse Hill. Also companies usually farm out their riskier projects, not appraisal or development wells

Certainly after they commissioned a Kimmeridge report in June 2019 they failed to deepen HH-2 through the Kimmeridge for more data, they didn't dual complete or sidetrack HH-1 for the Kimmeridge.

Even if you do think the delay was due to the legal challenges there will be a long wait until anything happens except more workovers to supposedly help production - none of the previous ones have helped except to the extent the reservoir was shut in for a few weeks and initially production improved.

Wizard,

You believe what you want to believe but if UKOG thought that another well at HH was worth drilling they would have done it. As for a CPR I suspect the reason for not getting one done is to hide the problems - normally a company gets a CPR done to provide reserves to boost the company valuation. Instead UKOG have settled for an internal valuation for HH-1 of £0.8mm based on an unrevealed decline curve and quote the resources determined n the mid 2018 CPR produced before the 2018 onwards extended well test, and before the revised mapping resulting from the HH-2z well depths, which also repositioned the bounding fault so Collendean Farm -1 was no longer in a separate fault block. The same applies to the Kimmeridge where they had a report done in June 2019 - but not a CPR which has to be made fully public - it didn't have billions of barrels of resources.

Since 2018/2019 they've tried Turkey, tried HH-2z and seen HH-1 decline massively - their growth 'strategy' has failed, they have little positive cash flow from HH-1 and huge outgoings. They have failed so far to farm out Loxley and are losing 49% of equity in future HH wells (if PPP actually farm in) when they could have drilled at least one with the cash they wasted in Turkey and they could be profiting from them if they were as successfully as some expect (not me).

You've swallowed the BS for years and appear to still believe the Kimmeridge is a viable reservoir - maybe there will be pump and dumps but a long term recovery of the mcap looks very unlikely.

Ocelot,

the EBT overpaid by at least £60,000 in the first place because UKOG couldn't issue shares for less than 0.01p.

I wonder if they could swap them for 300,000 shares they can issue at 0.0000001p (think that's the right number of noughts) which will reduce the cost to £30 from £300,000 - certainly illustrates how far down they can take the SP following the GM.

One problem UKOG now have is that when the consolidation and lowering of the nominal value was announced the authority for additional shares was about sufficient to service the loan notes that were still outstanding.

Whilst UKOG haven't mentioned whether they have taken the two extra tranches of £500,000 each assuming they have loan notes totaling about £1.66mm awaiting conversion - though it is suspicious that shares are being supplied at the end of the day to cover buys by someone .

Assuming the consolidation, nominal value change and the authority to issue £1,476.75 of extra shares (at the new nominal value) are approved by the trustees (for it's those votes that will decide) then they have authority to issue 1,476,750,000 'new' shares. But the number required to cover the CLN at even a 0.07p vwap (post consolidation SP) is about 2,371,000,000 or about 70% more shares (of nearly 3.3billion) and of course the 1.47675 billion is now only about 45% extra shares - a silver lining in the gloom!.

Indeed ocelot,

That they seem to have found a way to issue more shares than they had authorisation for is testament to how far the BoD is prepared to go to thwart the instruction they received from their shareholders.

and the cash they received issuing the shares they gave the EBT so no extra cash in the whacky world of UKOG, just more shares - not even sure how the EBT can repay the debt, it depends on the arrangement for awarding the shares to employees I guess.

Instead they could have set out a way forward that didn't involve spending most of the cash raised by an O&G E&P company being channelled into the gas storage subsidiary. Perhaps prove that's commercial by getting someone else to pay up - and perhaps try and farm out equity in the Turkey venture as well as Loxley and HH for the same reason. The HH farmout currently in limbo due to 3 things it seems, HHDL partner/s don't agree, PPP seems to have no cash and the most popular excuse for not doing anything at HH - the Supreme Court decision that's supposedly prevented UKOG drilling fantastically profitable wells for 4 years - when the wells they did drill either failed or declined rapidly in production.

Down but not out.

In normal circumstances consolidation shouldn't have a dulutive effect, but the only reason UKOG is doing this is to enable it to issue more shares that, according to the rules, they currently cannot.

Even worse the shares they need to issue are for cash they have at least partially, if not completely spent/wasted so they ought to be dilutive. Even worse, it is in the interests of those they are issuing shares to to drive the SP down because they appear to be able to 'elect' a vwap that's favourable to them after the event.

Can anybody (apart from the biggest fanboy) trust a company that appears to have resorted to selling shares above market value to an EBT to ensure the voting at the follow up GM goes their way rather than changing their resolutions that those voted against.

According to some those that voted against to bring the company down don't own any shares.

Adrian,

I'll leave you with this.

like you I buy low and sell on spikes - and like you I don't always get it right but starting with 2017 I've done OK. I say I do this and unlike you don't resort to mindless ramping, in fact not only is my opinion of every project so far that the outcome will be poor or failure but I also post it here explaining why - but apparently you've hacked into my trading accounts so you know otherwise.

Oh no, I forgot only I have access to it, and you haven't hacked it (because you're wrong) it's Just more of your made up BS because every time you post your made up BS it gets found out.

As indeed is this:- 'Youve never owned shares here . Just a small time sad deramper :)'

Of course it isn't deramping if it's true - but all you ramping ends up being proved wrong. Only when you think you're deramping to get the price down for one of your princely buys are you close to the truth - though you probably don't understand why.

Adrian,

you're not a real investor, you're a small time trader/chancer.

Perhaps you should be 'severely pxssed' off with SS and UKOG who keep pulling the wool over your eyes.

Oh you have been:-

'But i am very excited He's back. Left to SS nothing would happen :)'

'My prediction SS will lose Broadford Bridge because of his arrogance lazyness and greed.'

and that was Feb 8 - and you post earlier 'UKOG should get PP extention granted imo'

ahhh - of course imo!!! Proves everything.

and someone who just makes stuff up says someone else makes themselves look silly.

'You only make yourself look silly suggesting SS should drill expensive oil wells while legal challenges were on going in the High Court,'

Well based on what little UKOG has published - my opinion would be the same as SS and not drill because a risked NPV would probably be negative. The point I'm making is if the wells were as good as you seem to think with low technical risk they should drill them as the risk of Finch winning is so low.

But you can't even remember what you thought about the BB planning outcome earlier this month.

Adrian,

you posted:-

'Cyan i am correct . Ive done my research over the years unlike you.

If you read my posts you will know no drilling can be carried out while legal proceedings against planing are in progress for now over 4 years.'

As usual complete made up BS - 'imo' at the end of a tweet or post is not a proof.

UKOG has RNS'd on several occasions that the planning permission is in full force. It's UKOG that has chosen to not drill.

15/8/2022:- 'Planning consent currently remains in full force and lawful oil production at Horse Hill will continue until further notice.'

......and that was following Finch's leave to appeal.

The fact they are continuing with production proves that the 2019 planning permission remains in full force:-

Description of the proposal:- 'enabling the production of hydrocarbons from six wells, for a period of 25 years.'

The previous planning permission only allowed the test production and was only for 3 years:-

'for a temporary period of three years,'

Horse Hill is not like any other well - it's like a well in a fractured reservoir with rapid pressure drop, with the added problem of water producing fractures.

UKOG claimed HH-1 production started in late March at over 300 bopd, by July the fourth month of production the average was 122bopd and 27% water. Now they're struggling to balance water and oil production, with November 2023 production of 44 bopd with 39bwpd, a water cut of 47%.

Whether there would be an economic case, with a good RRR on investment, to drilla well producing like HH-1, taking into account the risks, is questionable - but I doubt that would be a consideration for a cowboy outfit just wanting to prop up the SP.

Just because wells in Texas (where costs are considerably lower, plenty of rigs and other kit and less HSE and environmental regulation) are worse does not suggest HH has a normal decline, 60% in the first four months is terrible, ot what you would expect from a clastic reservoir.

BTW how are those PPP workovers going, radio silence about them since early December doesn't look good following promiises of various updates.

Adrian,

If you believe that any future testing or drilling at either Loxley or Horse Hill has any information to offer over the full core, extensive logging suite and months of 'testing' of the Kimmeridge at Broadford Bridge which is about 17 kms from Loxley and considerably further, and the other side of the Weald Basin from HH, you've fallen for yet another of UKOG's deceptions. I wonder if WSCC planning committee will?

Wouldn't say it's nailed on to get another 2 years extension having asked for 2 or 3 extensions supposedly to do something already, but if they do it's just delaying the inevitable abandonment of the well and restoration of the site. The locals, rather than some bloke who lives nearish to HH supporting the extension and I'm sure it's just coincidence occasionally has shares in UKOG (and becomes the biggest cheerleader for a while), are concerned that UKOG won't have the cash to restore the site - and they're right to be concerned following the recent shenanigans.

and no I have nothing to do with TW, though knowing your twitter history you flip flop between strongly criticising UKOG, and being nasty about SS, and then when you've bought some shares posting and tweeting how great everything is going to be.

Anyway good luck with the £5,000 - let's hope there's not just a week of desperate tweets about Portland port / anything hydrogen to try and stop the slide.

Maybe if they announce they're doing some work on HH to try and stop the decline / water cut increasing and ther's a mini spike you'll be boasting you've sold and not held for the supposed golden future.

Adrian,

Bullying - 5 posts in a row? Of course you'd know all about bullying having even managed to get your beloved freeasabird twitter account suspended as well as being banned here.

BTW it was thousands of bopd, I'll explain, that's barrels of oil per day, not barrels of oil over 6 years including testing.

As for a slant well, it will make very little difference producing from the restricted 'lions share' layer but will increase the chance of hitting a water conduits, as for a horizontal only a fool would try that again.

You can repeat your ramping nonsense until you've filled up a page but it doesn't make it right. UKOG used to serially fool you. But then you won't be hanging around this time with your £5,000 of shares for results just a rise on news and you'll be out, all the BS about how great HH or anything else will be will be for the mugs to wait and watch fail, which will be a long wait as there won't be any drilling at HH or Loxley until much later this year at the earliest, if at all. So you're just relying on what UKOG does best, news about a plan to do something, rather than results.

No need for DL to attempt a takeover of the whole company - who would want the clean up of BB or the money pits of Turkey or Portland port, just buy UKOG's shares in HHDL and or the subsidiary that has the ex Tellurian 35% - UKOG (137/246) Ltd. Maybe even get them to pay the NPV of HH-1 £0.8mm, though that wouldn't leave room for profit.

Adrian,

And UKOG is giving up 49% of HH because it's so great?

If it was really good they wouldn't have panicked into spending $5mm on Turkey when HH-1 water production was going to be seen in the OGA figures - and then, when Turkey started to fail, everything else on the Portland gas storage project.

It seems even you (as you've bought in) think there's no chance of the Supreme Court agreeing with Finch but in the meantime UKOG has deliberately, in your opinion, not drilled slam dunk wells that could have helped stopping the SP going from around 0.2p in July 2020 to 0.0075p today, a 96% drop.

Anyone that believed your nonsense over the years would wonder what happened to the thousands of bopd that was going to be produced by HH, or even the 108bopd you claimed over the winter of 21/22.

'The Fool on The Hill@davethedrill1

Jan 15, 2022

#UKOG OK Let's see who is full of sh*te.

I'm calling Ibug out on @LondonSouthEast. Let's see who's nearest. 🤠

December /January. #Horsehill production is 108 bopd.

Ibug and 🐧 says HH is down to 49 bopd and declining. Bullsh*t!'

And I certainly didn't post UKOG was down to 49bopd (though I almost certainly posted it was declining)- though 49 bopd was much closer to the actual than 108bopd.

Next You'll be quoting the revenue from the current production as if the OPEX isn't huge, nor that UKOG's outgoings mean the company loses millions a year.

Adrian

'I would say there are a few nervous shorts posting here this evening.'

Well apart from the obvious that you can't short UKOG, if anyone had taken out a short a couple of weeks ago (ca 0.012p) would probably have closed it and made a very handsome profit - if they took it out when insidious was claiming how great Pinarova would be they'd be even happier (ca 0.027p).

Looks much more like a couple of dodgy traders desperately pretending that UKOG with authority to create 50% more shares won't - and ignoring that there's nothing going to happen drill wise until at best later this year, but given UKOG time slippage more likely 2025.

Deltavegatheta,

Like Godot water injection - such an easy win if it works - never arrives:-

May 2022:- 'UKOG can now proceed ahead with its plans to convert Horse Hill-2z into a water injector during 2022'

Mar 2023:- 'As per the Company's RNS of 27th February 2023, the field's forthcoming water injection programme'

Not sure when it was last mentioned - maybe this - in the £3million Funding RNS in June 2023, one of the uses of the cash:- 'Horse Hill field: water reinjection work-over,'

Remember the rule - most recent opened account, also on a Friday afternoon.

Evening Adrian maybe you'll be waiting until the summertime to sell at a loss:- 'I am voting yes. The future looks bright.' of course you will, you bought back in hoping it had reached the bottom rather than just another bottom on the way to the next one.

didn't you mean the future is blighted not bright.

the only problem is UKOG has no money and as yet no farm in at HH.

Hoping for PPP to first of all shoot some seismic, but they have limited scope for cash raising - there's the 20million funding facility dating from 2021, and not used for any raise since - of course that's going to happen with a mcap less than UKOGs - and still no update from PPP since 4 December on the production that was going so well, but looked like it was dropping, from CT-1H, no update promised (on 30 October) on water cut and no update about the CT-4H workover that was about to start December 11th, and no Supreme Court judgement about the Finch lost cause challenge mentioned for next week on the Supreme Court site, as they do the verdicts on Wednesdays it can't be until after the GM.

Even if somehow PPP manage to raise some cash to drill, and the HHDL shareholders agree when will the drill be - 2025?

Let's hope there's more tweets about the Portland Port project that they're spending all their cash raised on, with a hope they get government backing later this year - and no positive cashflow until, at best, end of this decade but probably not until the 2030's.

and being honest about what UKOG is up to isn't trying to bring the company down - I notice you don't mention Turkey or the Portland gas storage project that UKOG seem intent on spending all their money on rather than preserving their % in HH or even advancing Loxley - although I don't think HH-3 will be earth shattering and Loxley probably a failure at least it fits within the company's core business.

Insidious,

2p - seems you expect a big drop and another consolidation.

Anyway it looks like they'll win with their newly minted 3 billion shares sold to a trust they can instruct to buy them - funny that happened yesterday - of course they would know the number of votes they needed to overcome the opposition, and it was probably far less than 3 billion, so plenty of headroom in case more voted against because of the shabby way pi have been treated, and will probably continue to be.

Presumably, as the Nomad will have signed off on this RNS, this is perfectly legal.

We still don't know the exact reason for abandoning ('postponing') the GM, but this RNS suggests it was that there were not enough votes supporting the boards recommendations - just like the withdrawal of a resolution in a previous AGM. The resolutions were interlinked so one failing meant they all did so withdrawing one was not an option

If so, and therefore this is just conjecture, is it right that the company's solution is to find 3 billion shares up its metaphorical sleeve that it can add to the EBT to create a 10% voting block when the board in total only have about 17 million shares personally held (worth just over £1000) they could vote in favour of what they want to happen to preserve the confetti factory against the wishes of their owners, who they should be working for.

Instead why not try and try and persuade the shareholders by coming up with a sensible plan of action that addresses the divergence of the company's direction from oil and gas exploration and production - and the endless lack of full disclosure about even that that leads to over promising and thus guaranteed under delivery. Surely it can't just be posters on this board that can see the riskiness in the ventures based presumably on much less information than should be available to UKOG.

Some form of words basically saying we're hoping this might be transformational (for example) doesn't help in understanding how risky the ventures are.

PS there has been no consolidation - it wasn't approved at the GM.......if anyone is saying it's happened they have got it wrong.

I was just looking at that and the total % is obviously over 10% which would be on 27 Feb 3,253,992,610.4 whereas the total EBT shares will be 3,255,000,000 - over 1 million too many - insignificant maybe but an unneccesary mistake, and possibly demonstrates the contempt the BoD have for 'rules'.

Maybe one of the BoD will buy over ten million options to make it right - though they are all over 1 penny so an expensive fix - over £100,000. Or maybe they will vote the options cheaper?

P*ss up in a brewery comes to mind.

SRBS,

Don't think those 3 billion shares are going anywhere except to align with the BoD recommendations at the next GM. It will also allow the 50% of new share authorisation to be a bit higher.

As I posted last night unlikely there's a benign reason to suddenly remember a 2014 scheme that allows an issue of 3 billion shares above a previous authorisation at zero cost.