Member Info for RNSTranslator

Perhaps for once Mr I you could actually answer the point rather than blindly and incorrectly throw accusations around?.
YOU raised the issue of putting faith in someone with 40 years experience in the industry.
I simply asked what that faith was based on, and you can't or don't want to answer...
Never met the guy, so my opinion is based on a track record, whats yours based on?

"who has 40+ years experience in the industry"
And has achieved what in that time ?
As I'm sure you know its not how long, its what you do with it...

Heid
I'm not worried, but the simple fact is more than $250k juts went out the door (and it appears more to follow), and we don't know when the royalty owed will actually be available to the company.

Mirasol, I'm not worried the AR wont be paid as its a contractual obligation. The question is how long did it take to accumulate that amount when the annual income seems to be in the 10's of thousands and how long will it take to be finally be paid...I would guess $120k plus $25k looks like at least a couple of years worth if not more so whats caused the delay, and how long until that reason is solved?..."in due course" according to the company. The issue for me is one cash outflow ($250k plus in this instance) and when will the cash inflow start. $250k is not a huge amount in context of £7mm+ in the bank, question is one of what is the next Royalty deal going to be in terms of cash outflow and will it have the same uncertainty about when the cash actually starts to flow back.

Ah Yes Keddington, sorry I forgot to reference that:
2015: The British oil junior is acquiring 10% of licence PEDL005(R) will pay 20% of the cost of a side-track well planned later this year at Keddington in Lincolnshire. This could boost production from 30 barrels to 125 barrels per day.
2016: "The Keddington-5 development well was drilled post year end and during the course of drilling, elevated gas readings, indicative of the presence of hydrocarbons, were recorded from a gross interval of 141 metres, containing 62 metres of net sand. Subsequent testing of Keddington-5 sidetrack has initially seen production dominated by water and plans are being considered to isolate the zone of water production"
Undaunted they bought another 35% 12 months ago for £235,000, increasing UJO's share of production by 8 bbls/day and with the statement "Potential to increase production volumes multi-fold via a relatively inexpensive side-track well" (heard that one before?)
8 bbls per day even on post opex margin of at best $40 /bbl is only $90,000 (£75,000) a year so payback is at least 3 years, on a do nothing basis, hopefully the next sidetrack will be more successful that the last.
Fact is its produced consistently 20 - 25 bbls/day gross since 2105 (OGA data).

Mixter said re Royalty "This adds solid cash flow and should under pin the SP."

The income from the Royalty for 2020 was ~ $25,000 this year it will be higher because of higher oil prices, once it gets paid "in due course". Interesting to note that Accounts receivable is $120,000, not including the $25,000 from 2020 so it would appear that the Royalty has not been paid over for a while (hence the note about the Royalty Manager). They've spent north of $250k on something that is yet to be collected although is clearly owed, and which will throw off some cash. It is of course subject to Ring Fence CT at 40%, although the driver for the deal is probably they have sufficient tax pools to shelter this for a while so this brings their use forward.
A welcome financial transaction, albeit linked to oil price, at present not really material for a wannabe mid cap. There is of course the bigger Royalty deal close, hopefully that too is not awaiting payment for too long...

You can’t have one without the other...

... brains ticking...
Its started working again, really pleased for you...

"I promised myself I wouldn’t post until we are back over 3p :-)"
See you in 2031... have a good break...

Simple fact is they need Wressle to flow at 500/day to get the cashflow to
1: repay the loans and then
2: find the money to actually drill anything.
They're a hostage to Wressle flow rates and Ceres abandonment liabilities...

"If the POO is maintained at the level it is now and go even higher HUR will be so cash positive that within a year they can pay off the CB’s and still have a few bob left over for work over to increase production
So it’s a baggers believe that why on earth the markets are not pricing this in and keeping the price at sub 4P?"
Because in your scenario after the post CB pay off they will need to agree to extend the AM charter, and that will require a renegotiation on rates and term (and creditworthiness check) , and they'll need to have enough cash (or raise it) to pay for the work programme they want to undertake...

Heid its your song:
"Then I saw her RNS, now I'm a believer
Not a trace, of doubt in my mind
I'm in love, I'm a believer
I couldn't leave UJO if I tried"

Persi (this time I'm going to at least partly agree with you, that'll confuse the fanboy's as I just disagreed with you!) 8-|
I would expect an early doors release on testing results, with "headline rates" with "pleased to announce" and very little in the way of useful technical data to make a commercial judgement on pressure response... gets the shares up.

Cynderlad:
"Mirasol, difference being that UJO have good assets and prospects." - agree relative to RBD's which has significant risk concentration on WN.
"Wressle looks good, proppant squeeze will improve it considerably." ... you mean MAY improve, its certainly not guaranteed nor does it always work, it depends on the rock quality beyond the 3m of the re-perf job.
"West Newton EWT due soon and the RNS's thus far have been excellent. " Yes EWT due soon, RNS's to date have only suggested indirectly starting late Q1, Wressle timing of PS, nothing said at all, what bit do you regards as "excellent?"

Persi: ( I know some folks think were the same person, but really!): "...You really don't think EWT at the West Newton site will prove to be conclusive surely. It will be swiftly followed by EWP (Extended Drilling Programme) which will 'eat up' a few more years."
Your implication is just incorrect: Yes the testing at WN should prove conclusively whether it is a saleable asset or Not. Good rates and low decline at WNB and also at WNA should give buyers the confidence to step up to the plate. Of course if there is decline then it will be a longer game and an uphill struggle to establish commerciality which will need more drilling (if the test results warrant), that indeed may take another couple of years. If the test dies in the middle of the EWT its game over.

Mr I, You forgot to mention me, did you miss me? Stockholm syndrome??
Unlike some, I don't feel the need to post daily, only when there is something to say or if someones posted misleading guff..
They've bought a Royalty and will buy a more material stake, not really big news as its not big money is it?
Interested to see how much actual cash people think has just gone out of the door for this... I expect most folks think its just a $130k, but its not.
The usual selective, but technically correct, information given...

Miker
The test data should theoretically allow interpretation. From the pressure responses as to how far each well can “see” hydrocarbons. It’s a theoretical calculation That could have a number of different but equally correct outputs. It’s not usually directional but could be integrated with mapping to deliver a best guess...

GP:
I've come across this Royalty issue before where the % royalty numbers can be confusing.
The way I've seen it work in the past is that its a 2.5% royalty over an amount which is 100% of the Revenue accruing to the 20% holders share of the fields revenue.
The 2.5% is in fact 1/40th of this revenue stream.
Thats 1/40th of 20% not an absolute 2.5/20 share of these revenues (or as you say 0.5% of the fields gross revenues).
That seems to accord more with the royalty revenue stream from last year of about $25k, if $25k was 0.5% of the entire fields revenue that would mean it was only $5mm, which seems far too low.
Perhaps a clarification from the IR folks would help.

I presume the shorts are also holders of the debt??
Do we actually know if that’s the case or just speculation?
If for a moment we assume they are, then why would they reduce their shorts? As I understand it, and happy to be told if I’m wrong, the shorts are a hedge against their debt. So if they reduce their short it either means:
1: They are much more confident in the debt being repaid.
2: They know something that will push the share price up (although wouldn’t that be insider dealing??)
Answers on a postcard please....

Bucklerfern I think that was the case... He's now CEO of VOG.