Hi Northman1
The conversion of cu ft NG to Kwh is given as 1 cu ft = 0.29Kwh, thus 140000 cu ft/day is equivalent to a value of 40,600 Kwh. This is the theoretical equivalent, in practice there would be an energy loss in the form of waste heat when generating the electricity. Good Luck in joining the roller coaster that is ANGS, it's only marginally less traumatic than UKOG!
As an admirer of the way this company is run and a small shareholder I was delighted to see the results recently posted. However, I am at a loss to understand the large drop in sp at the start of this month. Can anyone shed some light on this? My gut feeling is that this is a good time to invest but lack of spare cash prevents.
Hi Brocal53.
The art of successful investing is knowing when to sell. I can't trace your friends 15p to £36 but I can recall that back in the 1950's an Australian Mining Company, I believe named Poseidon, went from a few pence to £76. Needless to say I didn't invest. One which I did look at very closely was Channel Tunnel, not the present one but again around the 1950's. I asked my father to buy me £20 worth at 3p (old money) because I thought that I would get a certificate for each share and I wanted to paper my bedroom wall. In those days share certs. were very decorative. When he told me I would only get one certificate for 1600 shares I was so disappointed that I didn't buy them. Two years later they reached 33 shillings!. That's all part of the fun of investing. My Dad's advice "never invest what you can't afford to lose" and " never take advice" Good Luck!
Hi CaptainStanley.
Good to see people taking an interest in my post. Yes the tongue was firmly placed cheekwise but there is more than a little truth to be found in humour. Yes I do remember, I live in the ROI. As for the love/hate relationship between ROI and UK (more properly ROI/ England) it's alive and well but you have to live here to appreciate how it operates. There is more than a little concern here wrt the effect Brexit may have on the agri-trade. Without the UK market ROI would suffer huge financial loss. Wrt the ROI support for the EU, it's still strong but in general people here have only just begun to realise that the ROI is now a net contributor. With the blinkers off sentiment can change very easily.
My thanks to Chitty for a nice bit of support, it's a pleasure to find a fellow thinker. While there is little real information to chew over I am enjoying these lighthearted pieces of banter. Good luck to all fellow UKOG investors but for the moment perhaps we should cancel the Lambo.order and stick with the Jag.
As there is very little to say about UKOG other than idle speculation here are some ideas on Brexit. Mrcautious and Newinthis set the ball rolling very much along the lines of my thought process.At the risk of raising Cockernhoe to incandescence here goes. Tell the delay merchants in Europe that enough is enough, due to their obfuscation Britain will not pay their ransom of multi billions on leaving. Approach Ireland, our regular trading partner, to apply to join the British Commonwealth and agree with all our Commonwealth friends to declare the whole commonwealth a free trade area. This immediately solves the N/S border problem and goes some way to unite the two countries. Arrange with Ireland to take back the rights to all sea fishing within the UK/ Irish area and police all fishing activities using the combined might of both navies. Explain to the German and French car manufacturers that any attempts by Brussells to impose tariffs will be a disaster for their industries, they will then put pressure on the "idiots". Relax or remove many of the petty rules and regulations governing both small and large businesses and there will be a huge surge in small start-up companies and major companies wanting to set up in the UK. Just think of all that company tax, especially if we reduce the company rate. . I can think of many more actions but these will do for the moment.
Over the past few weeks I seem to recall a number of "facts" being posted.
1. Cost of oil recovery ca. $30/barrel.
2. Value of oil when sold ca $70/barrel.
3. 420 barrels per tanker.
4. The Kimmeridge layers produced about 3 times as much oil as the Portland.
5. 6 Tankers were counted in one week.
Using these data a little mental arithmetic gave an annual return of around twenty million dollars from the whole well.. Clearly my maths must be a bit rusty so i tried again, this time with a calculator. Result $20,966,400 How much more do we need to be commercial?????
Continued.
At the bottom of the tubing is a valve arrangement of two ball check valves. One is a stationary valve at bottom called the standing valve. The other is a valve on the piston connected to the bottom of the sucker rods that travels up and down as the rods reciprocate, known as the travelling valve. Reservoir fluid enters from the formation into the bottom of the borehole through the perforations that have been made through the casing and cement. The tubing, pump and sucker rods are all located inside the casing.
When the rods at the pump end are travelling up, the travelling valve is closed and the standing valve is open, due to the drop in pressure in the pump barrel.
Consequently, the pump barrel fills with the fluid from the formation as the traveling piston lifts the previous contents of the barrel upwards. When the rods begin pushing down, the traveling valve opens and the standing valve closes, due to an increase in pressure in the pump barrel. The traveling valve drops through the fluid in the barrel, which had been sucked in during the upstroke. The piston then reaches the end of its stroke and begins its path upwards again, repeating the process. The pressure the pump jack exerts on the well in this process serves to lift the emulsion of crude oil and water out of the well. This is then fed to a tank onsite where it is processed and stored before being collected by road tanker.
UKOG is able to recover oil from the limestone and sandstone formation deposits in the Weald Basin using this pumped recovery method. However, it should be noted that, for its new developments, UKOG is looking into the use of electrically driven downhole pumps that eliminate the pump jack on surface. This arrangement would have the dual benefits of less visual impact and less noise.
Thank to UKOG for this expertly described pump operation.
If you have had the patience to read this through let me add. I hope most sincerely that there is a happier reason for the speed of the upstroke than lack of oil, I am not deramping as I have a substantial holding!
The "rocket mode" of the upstroke may not be as desirable as you would wish. Contrary to popular opinion a pump does not "suck up oil" or indeed any other fluid. If the pump is positioned at the top of the well it would have to rely on downhole pressure as it would only be possible to raise oil some 30-40 feet (the hydrostatic head equivalent to atmospheric pressure). In fact the pump mechanism is positioned in the well at the level from which the oil is to be pumped out. If the upstroke is fast it may be because there is no oil, or very little to impede the pump. For a definitive description the following has been copied from UKOG's own website.
Enter the pump jack
Once the well has been completed, cased, capped and collared at the surface, a pump jack will arrive on site (see diagram) for assembly in order to start pumping oil from the well.
Pumps are used very widely in onshore UK oil production, as reservoir pressure and energy are typically quite low. This means that artificial lift of reservoir fluids via well pumping is required in order to achieve commercial flow rates.
A pump jack (also called nodding donkey, pumping unit, beam pump, or jack pump) is the above-ground drive for a reciprocating piston pump that is used to help extract the oil from the well.
It is used to mechanically lift liquid out of the well, if there is not enough bottom hole pressure for the liquid to flow naturally all the way to the surface. This arrangement is commonly used for onshore wells, which typically UKOG will be developing. Depending on the size of the pump, it generally produces 5 to 40 litres of liquid at each stroke. Often this is an emulsion of crude oil and water, along with a small amount of associated natural gas.
Modern pump jacks are powered by electric motors, when electricity feed to the oilfield is made available, either through a grid connection or through a low noise diesel generator.
The prime mover of the pump pack runs a set of pulleys to the transmission, which drives a pair of cranks, generally with counterweights on them to assist the motor in lifting the heavy string of rods. The cranks raise and lower one end of an I-beam that is free to move on an A-frame. On the other end of the beam, there is a curved metal box called a horse head or donkey head, named due to its appearance. A cable, usually made of steel called a bridle, connects the horse head to the polished rod, a piston that passes through the stuffing box.
The polished rod has a close fit to the stuffing box, letting it move in and out of the tubing without fluid escaping.
The tubing is a pipe that runs to the bottom of the well through which the liquid is produced. The bridle follows the curve of the horse head as it lowers and raises to create a nearly vertical stroke. The polished rod is connected to a long string of rods called sucker rods, which run through the tubing to close to the bottom of the well.
Continued below due to restriction o
Hi "JustaLearner".
Yes, but not as well. Cider is only lightly pressurised when compared with Soda Water or plain Carbonated Water. You might have to shake it while emptying. For a much better experiment with a good cider. Take a pint glass, fill it to the brim, carry it out to your deck chair in the garden and enjoy the flavour of a well fermented apple juice. Better still take the bottle out with you! However, if you're invested in ALBA wait a few months and replace your cider with a good Dom Perignon or better still a Krug. '98 if you can't get hold of a '61. Good Luck!
Ref. question by JustaLearner. Your question supposes that oil removed must be replaced by another fluid. This would be a reasonable supposition for a single phase system i.e. oil only. However, when oil is produced geologically there is always the probability that gasses will also be produced, resulting in a two phase, gas/liquid, system. From data provided we know that HH, Brockham etc. are two phase systems.
If you want to demonstrate how a two phase system can supply the liquid phase (oil) without replacement try this simple experiment. Take a 2 litre bottle of carbonated water. Pour out a couple of glasses, replace the cap and shake it firmly for a few seconds. Invert the bottle and loosen the cap just enough for the liquid to start to escape. You will find that almost all of the water will be driven out of the bottle by the pressure of the expanding gas, carbon dioxide. No need to put any other liquid in as a replacement.
This is the situation that we seem to have in the Weald. If you do try the experiment I suggest that you do it outside thus avoiding the otherwise certain wrath of the "Lady of the house"
Your experiment will rely on pressures around 50 to 60 psi. To produce a "gusher" the pressure in the oil deposit must be greater than the hydrostatic pressure which approximates to 150 psi per 100m depth.
Ref hope9
Sorry I replied before your next post. Here is the calculation. There are 1.64 million cubic inches in a barrel.
31790 cu in represents 31790/1640000 barrels that is 0.0193841 barrels.
At 17 seconds per stroke the delivery rate would be 0.0193841 x 60 x 60 x 24/17 which my "Alexa" tells me is 98.517604 . If your figures are correct we have somewhat less than a bonanza. Let's wait for the RNS!
Ref hope9
The bpd figure would be 13521.34. I suggest that you recheck your calculation of the pump capacity, maybe you're out by a factor of 100.
Ref post today at 07:56 dsfat/448.
Yes, at least one of us holds both JAY and ALBA. I started with a sizeable investment in UKOG and traded to reduce my average buy price. While researching and trading I noted that ALBA had a substantial interest in UKOG's HH well and further research showed that ALBA had a much smaller capitalisation/number of shares in issue than UKOG, hence it seemed appropriate to buy into ALBA. When I researched ALBA's other interests, i.e. Greenland Ilmenite JAY stood out as a worthwhile player, hence my holding in JAY. My "Risk Profile" is a Financial Adviser's nightmare, covering "Blue Chip" mid range risk and high risk/potential high return such as JAY,ALBA and UKOG. With good results I stand to make a bucket of jam for the bread and butter, poor results and I shall lose only a relatively affordable sum. BEST ADVICE don't invest anything you can't afford to lose! Good Luck
Ref Jeremiah99 I trust this was "tongue in cheek" the logistics of digging up 1.7bn tonnes of ilmenite and dropping it into the world market would be staggering, even if the ore was located close to the prime markets and not in Greenland. Let's just say that the supply logistics will ensure that the ore retains its price. This is made even more likely by the ore quality.
If you are already invested, good luck, if not now might be a good time to dip in.
On Friday, after close, I placed an order at 1.95 with a stop at 1.98. I don't have crystal ball but it seemed reasonable to expect a rise today. This trade would have reduced my average buy price very nicely, however, the trade did not complete despite the fact that the market opened at 1.85 and was still below my figure at 8.02. When I asked my broker for an explanation I was told that all the trades up to that time had been "off book" and that no shares had been available to purchase below 1.98. Just another case of one law for them and another for us!
To those of you helpful people watching for tankers coming or going may I suggest that you look for a 4-Digit D.O.T. Placard - UN 1267 Petroleum Crude Oil, Tagboard S-19563. This device consists of a red square displayed diagonally, bearing the number 1267 across the centre and the number 3 in the lowest corner. If / when you see a tanker at the site displaying this sign we may start to feel a trace of optimism! Good luck with your tanker watching. As a long term holder of UKOG shares experience has shown me to buy when sp drops below 2, sell a few above 2.8 (to lower your average holding price) keep the rest with your fingers crossed . However, IMHO this is not a share to bet the house on.
Thank you Dodgemeister for a clear and precise piece of reconstruction. For a while I have been wishing that I had sold around the high point last year, could have bought a new house, but I didn't sell many. Now, I am thinking more along the lines of why did I sell any? I think your reasoning is good and it does appear that any sp rise now will be backed by physical evidence. It is still my firm belief that all the bores so far made are dipping into one interconnected deposit. I don't have details of the exact composition of all the tests, but my bet is that they will all be very similar. If this is true sit back and wait for the Bonanza.
I have to agree, I can't explain the modest ratio and most certainly a long term hold. My investment strategy would give any financial adviser nightmares, in terms of defining my risk profile! I hold shares based upon regular growth in earnings,assets, shareholder funds and dividends LGEN is a prime example. The data below exemplifies this and is why I picked LGEN. Despite what might seem to be a risk adverse strategy, I also hold UKOG, AST & ALBA. As a one time qualified FA I could not advise this approach. Good Luck with your choices of investments. � Millions � Millions � Millions � Millions Income Statement 31 Dec '15 31 Dec '14 31 Dec '13 31 Dec '12 Profit for the Period 1,094.00 992.00 906.00 798.00 Dividend per Share 13.40p 11.25p 9.30p 7.65p Net Assets 6,693.00 6,303.00 5,907.00 5,480.00 Shareholders Funds 6,404.00 6,028.00 5,642.00 5,441.00 Net Asset Value per Share 106.20p 99.75p 94.06p 90.05p Dividend Cover 1.39 1.48 1.63 1.81 Dividend Yield 5.00% 4.50% 4.20% 5.30% PE Ratio 14.40 14.90 14.70 10.50 PEG 1.30 1.50 1.50 1.00 Apologies for the vertical presentation I blame ctrl C and ctrl V.
Hi Folks. To those dithering about selling, buying or holding LGEN I can only reiterate my previous comments. The only regrets that I have ever had with LGEN are when I have sold shares. IMHO this is a large, stable company run by sensible people who look after their shareholders very well. LGEN pays a good dividend safely covered by profits and shows a healthy long term growth in value and income. What more can you wish for?
Ref Crystalballbroke. If it helps I have held these shares for some years and the only regrets that I have ever had from them has been when I sell any! Note the surefire way to make money on these shares is to see when I am selling and buy them quickly.