Member Info for Ribeye

"The price of oil here is irrelevant to the sp, It might be someday, but not at present, if it was, the already massive spike in O&G prices since oil futures were minus 3 dollars a barrel during Covid, would reflect on the share price and the share price wouldn't be continually falling as oil is rising..."

Erm, WTF? UJO is now a PRODUCER with a £6m+ per annum cash flow. It previously wasn't which is why the SP didn't correlate with POO. It is now a dependent and leveraged play on POO in every sense as an OIL company producing OIL with four cash generative assets.

Both Wressle and West Newton has explicit planning intention to generate electricity instead of flaring gas.

BWRM has a roughly 15-20% exposure to primary Gold mining.....and these guys are ****ting cash at the moment.

A 4% dividend yield, in a stagflationary world with government bonds at negative real rates, is a huge positive.

I also see a migration out of cash and treasuries into tangible assets, in search of yield as the theme for 2022. Chinese demand is here to stay whatever in my book.

Also presumably the royalty, if purchased today, would have paid something back to the company in the next 12 months, and would therefore help service the loan......otherwise why buy it?

I posted this on ADVFN earlier:

1) Given Wressle is now generating cash flow, why debt based funding has been discounted out of hand in favour of the traditional 50% discount for spivs leaked September 'placing'. If it's too early, then why not wait?

2) Why an open offer allows PIs to take part in the price discovery has not been considered, or explained away? I'd rather a take part as a shareholder in a more expensive (to the company) mechanism, that see the value of my shareholding reduce by 30-50% each September.

3) Sufficient details of the mechanism of the existing 2.5% Royalty Unit (which I was happy with on the face of it as a small diversification), let alone the mechanism of the proposed 25% Royalty acquisition. Additionally, why must the company buy ALL 25%? Is that a condition of the vendor?

4) Proposed timescale of the gas-to-grid development. Obviously a containerised gas engine needs to be sourced (from Germany normally) and some export/connection infrastructure will be needed. These plans should be relatively well advanced as the gas is not a surprise.

5) Why a merger with EDR/UOG with simultaneous equity raise has been discarded. Mr Abbott of EDR would be an asset as an experienced operator, and allow Dave to step back with dignity as non-exec Chair.

On the plus side:

1)1 month production extrapolates to $6m per annum NET to UJO.......CONSTRAINED.....BEFORE gas-to-power revenue......OR any upside from an increase in the price of oil (a $5 increase would bring in over $500k extra per annum).

2) The energy equivalent of 80 boepd gas is 130 MWh. This is a LOT of energy. Last August the wholesale price was £37/MWh - that would be £700k per annum NET to UJO. This August the wholesale price was £107.....and climbing. Gas engines can also be programmed to run PEAK load for even greater income, assuming some kind of onsite storage can allow 'surge' at peak times.They would probably need TWO of these babies to ensure constant production at the well head and allow for downtime/maintenance:

hTTps://www.edina.eu/gas-engines-mwm?ppc_keyword=gas%20engine&gclid=CjwKCAjwhaaKBhBcEiwA8acsHPNxf84ndWJyh4guvXSJNEvUWEyyWkrwXyegr_pW6RE1QjoTzLIRFxoCs-UQAvD_BwE

I think the gas to power thing is a BIG deal myself. It also presents a template for a possible way to monetise West Newton in a preliminary and early fashion from an existing well bore, without buggering up the future development options.

3) For me, the company needs to have another conventional Wressle-like discovery ideally - North Broughton (Appraisal) or North Kelsey (lower CoS) to underpin things as a producer. West Newton is a ****-or-bust thing, and Biscathorpe is bonkers and difficult to visualised geologically for me.

ADVICE FOR DAVE:
1) TALK ABOUT GAS TO POWER MORE...now!
2) EXPLAIN THE MECHANICS OF THE ROYALTY UNITS BEFORE ASKING FOR MONEY
3) ASK US (The shareholders) FOR THE MONEY
4) GET INTO BED WITH EDR MORE VISIBLY, and DRILL BROUGHTON OR N.K

'Instantaneous'....constrained.......over a MONTH (as evidenced by the cash flow).

The G&A costs are not £1.3m-£1.5m per year. That included technical, seismic and other geological costs for Wressle, Biscapthorp and West Newton.

The royalty payment is in excess of £100k too.

Deplete in 4 years my arse!

Oil and gas Reserves and Contingent Resources identified by the Competent Person in aggregate exceed the Operator’s original pre-drill estimates
? Gross P Mean Oil Initially In Place (“OOIP”) is 14.18 million stock tank barrels in aggregate across three reservoir sands, the Ashover Grit, Wingfield Flags and *****tone Flags, of which 2.15 million stock tank barrels are potentially recoverable (2P+2C)
? Gross 2P oil Reserves of 0.62 million stock tank barrels in aggregate identified across two reservoir sands, the Ashover Grit and Wingfield Flags that form the basis of the initial development plan which currently excludes development of the material *****tone Flags reservoir sands
? The initial development plan utilising the Wressle-1 discovery well has been submitted to the Oil & Gas Authority (“OGA”) and for which a planning application is currently being considered by the North Lincolnshire Council
? Commercial oil production is expected to commence in early 2017 at an estimated 500 barrels per day gross and generate significant net cash flow
? Gross 2P gas Reserves of 0.2 billion standard cubic feet
? Development options and production planning for the *****tone Flags reservoir are
expected to be progressed following commissioning of the initial Wressle development and will include monetisation of the produced gas by pipeline or electricity generation which will be sold to the National Grid.

Nonsense. Wressle alone puts the company on a forward PE of 10, with other assets producing and 3 more assets ready to drill/sidetrack, CASH and the royalty deal already announced taking care of most of the G&A costs.

I'm just wondering what it exactly it was that lifted itself 1000m up the wellborn when the well was drilled.

There may be skin damage interfering with stuff in this reservoir - they haven't drilled this test remember, they've done a mild stimulation with acid.

An oily gassy duster.......

· Locations for the West Newton A-1, A-2, B-1, B-1Z and a proposed B-2 well, which has planning permission in place and is provisionally planned to be drilled in H2 2021, and a demonstration of where the B-1Z well represented a considerable 2.5 kilometre step-out to the south of the A-2 well

· Good seismic calibration across the West Newton project area, highlighting both the Kirkham Abbey "platform" and "slope" formations

- Demonstrated hydrocarbon column of at least 118 metres with no hydrocarbon-water contact

- Thick porous section identified in both A-2 and B-1Z wells suggesting a contiguous structure across the Kirkham Abbey formation

- B-1Z well de-risks the southern component of the West Newton licence area and crucially supports the accuracy of the seismic interpretation across the entire platform

· Log results at B-1Z well were excellent, exceeding Union Jack`s pre-drill expectations

- Good porosity throughout the interval

- Kirkham Abbey interval hydrocarbon saturated

- Mudgas concentrations observed while drilling through the Kirkham Abbey formation at B-1Z well were as high as 9.8% total gas

· 18 metres of core cut and recovered from the B-1Z well

- Visible natural fracturing, micro fracturing and vuggy porosity demonstrated from core-lab inspection and analysis

· Numerous additional leads and prospects, including Ellerby and Spring Hill, identified across PEDL183

GDPR regs would suggest that the council is breaking the law with that behaviour.

Good question I was thinking the same. I suspect 'not much' is the answer.

Lets face it, real interests rates are every bit as negative as they have been for a few years. There's zero chance of rates going higher than even the grossly understands CPIs around the world.

PM price have been smashed by algos and jaw boning by the FED, but no one has sold any physical.

In the meantime, mining juniors are pretty well cashed up, and the majors are literally digging money out of the ground at the moment. They are on the lowest PEs of the broader market (which is insanely over valued) but are the most 'insured' against significant inflation. They have cash piling up, and need to replace reserves in the ground which are at historic lows for the big boys.

With COIVD restrictions starting to ease, due diligence on potential takeover targets onsite (and their own infill drilling programmes to a lesser extent) can resume. The ongoing pull back in the junior and madcap share prices must mean that the start of the next M&A cycle is close at hand. That should concentrate a few minds and put the spotlight back on the PM mining sector.

Meanwhile $24 dollar silver is more than enough for FRES. Its even going to be enough for smaller producers: Take Aurcana for example. They are actually in the process of starting up their mill and producing right now (first concentrate delivery early august). They calculate their costs of production (at initial constrained rate) at $10-12 per Oz and they are stope mining ore at 38oz/T Ag equivalent in Colorado. They have a path to 9m Oz annual production from 2 mines (both US) from own revenue by 2024 I believe.

The only people selling actual silver at the 'spot' price are the miners. The big boys are cashed up, and can in theory join Keith Neumeyer/First Majestic in withholding mine supply from the market. The greater the disconnect between the prevailing paper price and the true demand lead price, the greater the energy required to maintain that. With the investment demand in the world now putting the world supply in the 300m oz deficit range (conservative estimate)...........COMEX has to become a delivery mechanism and they won't like that.

FRES need to put all their cash in Bitcoin, and set up a couple of divisions that will will sell advertising to each other in 2028, then hint at 'spinning them off'. The market will love that ****, and the SP will be £25 by the end of summer.

Enough of this 'making more money', increasing dividends by 400% and no net debt stuff already.

I can't read Wetoilers Tweets because they are protected. I'm not following that twat just to read his nonsense.

Its one reservoir. The gas is essentially the same (in communication with WNA), the permeability is good as they say...therefore the pressures will not be that different in all probability.

There's some utter ****** being spouted about a single sentence in the RNS. Over estimated the reservoir pressure??

We know that in the initial drilling, the reservoir lifted fluids 1000m (Yes a KILOMETER) up the well bore. OK, if its condensate as some of us expect that\s less dense and requires less pressure to do that than will light crude, but its still impressive.

Condensate is liquid at higher pressure, and at lower pressure it will be 'less' so because some of it will have become gas. This makes it difficult to test and grade because it can go a bit 'boomy' if you f it up.

To me, it looks like these guys are trying to test this well once and once only. Permeability and porosity and pressure variables are more important to the subsequent CPR/FDP (and hence the value of the asset in terms of 3P reserves) than the API and flow rate of any liquid component. The full value of West Newton is not unlocked by trucking liquids to Immingham, its unlocked by flipping the asset to a Major for full development with fixed infrastructure.

Ribeye (Lageraemia on ADVFN + Twitter)

Nice completion report for the drill programme released today. The exciting thing for me is objective proof of the porphyry system at dept near the Georgine pit that has been hypothetical until now. A follow on programme and economic study towards the end of the year is the next milestone.

Awaiting news on preliminary drilling/exploration at the 2 other projects at Cherokee and Phoenix Silver.

https://www.silverone.com/news/2021/silver-one-intercepts-1-070-g-t-silver-and-1.48-g-t-gold-over-4.57-meters-within-26-meters-of-249-g-t-silver-and-0.40-g-t-gold/

We know that the oil only lifts itself 1000m up the 1700m borehole on its own. No biggy. It was always going to need pumping.