Member Info for SelfishMcNimby

But he's trading it Heid. In now, and out on results before what he considers will be a drop back to the placing price, if I understand right.

Not sure that's right Heid. You could ask him to clarify perhaps?

Assuming it is the same person? Apologies to him if not of course.

With good results 'back at the placing price' in a few months? I don't think so. Not sure he understands what's going on to be honest.
I've always thought he was a nice enough fella. I bought Afren on his recommendation in 2014 - my first serious loss - £20k. I forgave him no problem. I didn't do my own research. Hopefully we've both learnt a lot since then. I know I have.

I thought he was talking about a drive?

PEDL253 BISCATHORPE (30%)
PEDL253 is situated within the proven hydrocarbon fairway of the South Humber Basin and
is on-trend with the Saltfleetby gasfield, Keddington oilfield (55%) and the Louth and North
Somercotes Prospects.
In February 2019, the Biscathorpe-2 well was drilled and logging operations were conducted.
Preliminary analysis indicated that the primary objective, the Basal Westphalian Sandstone,
was not encountered as the well was drilled high to prognosis and did not thicken as
expected in the pre-drill model.
However, the initial result of the Biscathorpe-2 well has subsequently turned full circle and
the perseverance of the respective JV technical teams and their research has demonstrated
that PEDL253 can now be considered a viable hydrocarbon play and that Biscathorpe
remains one of the largest untested conventional onshore prospects within the UK.
The JV commissioned independent consultants Applied Petroleum Technology (UK) Limited
(“APT”) to perform a detailed geochemical analysis of drill cutting samples taken from 20
intervals in the Biscathorpe-2 well.
The objective of the APT analysis was to provide geochemical evidence for the presence of
live hydrocarbons, together with an estimate of the likely oil quality.
The APT report confirmed the occurrence of hydrocarbons in the Westphalian and Dinantian
cutting samples analysed, validated by the presence of a full suite of gases ranging from
methane to pentane.
The key result from the report was the likely presence of a 57 metre live oil column with API
Gravity of 33º to 34º in the top of the Dinantian interval. Additionally, data evaluated at the
base of the analysed section were suggestive of possible extra hydrocarbon pay at the base
of the Dinantian interval.
The information derived from the revised petrophysical analysis has upgraded the
Biscathorpe-2 well result, indicating proximity to an effective petroleum system, and
validates Union Jack’s and its JV partners’ belief in the additional potential that exists within
the PEDL253 licence area.
The licence area has seen extensive re-processing and re-mapping of 264 square
kilometres of 3D seismic. This exercise was a complete success and subsequently
numerous accessible targets have been located which can be reached using a side-track
from the existing Biscathorpe-2 well which was suspended when site operations were
conducted during 2019. The side-track well currently undergoing planning and optimum
location will target both the Westphalian sandstone reservoir and the oil column logged in
the underlying Dinantian Carbonate.
A dispute involving Humber Oil & Gas and the JV has been resolved and all parties look
forward to co-operating in the future to the ongoing development of PEDL253.
During June 2020, Union Jack purchased a further 3% working interest in the licence from
Montrose Industries Limited bringing the Company’s interest to a material 30%.

PEDL180/PEDL182 WRESSLE DISCOVERY (40%)
Located in Lincolnshire on the Western margin of the Humber Basin, PEDL180 and
PEDL182 contain the substantial Wressle conventional oil discovery with proven reserves
and significant upside from contingent resources, from which first commercial oil is expected
to flow at a constrained rate of circa 500 barrels of oil per day gross during Q4 2020.
During January 2020 Union Jack, Egdon Resources plc and Europa Oil & Gas, the JV
received the welcome news that after several years of planning setbacks in respect of the
development of the Wressle Discovery, the Planning Inspectorate had upheld the appeal
and granted planning consent for this company changing project. The Inspector also allowed
the application for the award of costs against the North Lincolnshire (“NLC”) Council.
Subsequently, the NLC has paid costs of £403,000. Union Jack has received its pro-rata
proportion of this payment which has been applied to ongoing reconfiguration at the Wressle
production site.
Rapid progress is being seen at the Wressle production site and the Operator has advised
the JV that the civil engineering contractor has mobilised to site and the development works
to reconfigure the existing site for production operations have commenced. These works
include the installation of a new High Density Polyethylene impermeable membrane,
specialist drain system, an approved surface water interceptor, the construction of a
purpose-built bund area for storage tanks, a tanker loading plinth and an internal roadway
system.
On commissioning, an increase in production of 200 barrels of oil per day, net to Union Jack
is expected.
The Operator has updated its economic model for the Wressle oilfield. Their work has
demonstrated that the project is economically robust in the current, although improving oil
price environment with a cash break-even oil price estimated at US$17.62 per barrel.
During June 2020, Union Jack acquired a further 12.5% interest in PEDLs 180 and 182 for a
consideration of £500,000. This acquisition has had an immediate marked effect on the
Company for several reasons;
? The acquisition is value accretive and increases Union Jack’s 2P Reserves and 2C
Contingent Resource base by 45.5%
? The internal Rate of Return to the Company is 46% underlining the economic
attractiveness of the acquisition and the Wressle project
? The economic impact on the Company of establishing first oil during Q4 2020 will be
financially transformative and enhanced by the increased interest
The Wressle-1 well discovered hydrocarbons in 2014. During testing, a total of 710 barrels of
oil equivalent per day were recovered from three separate reservoirs, the Ashover Grit, the
Wingfield Flags and the *****tone flags. In September 2016, a CPR provided independent
estimates of reserves and contingent and prospective oil and gas resources for the Wressle
discovery of 2.15 million stock tank barrels classified as disco

Drilling operations are expected to continue for six to ten weeks. Once completed a combined testing programme will be carried out on the WNB-1 and WNA-2 wells.

Looking to the future, the Operator has submitted Screening Requests to East Riding of Yorkshire Council for two new potential well sites, West Newton C and West Newton D. This is the first step of the planning process to further explore and appraise the West Newton hydrocarbon field and will determine whether planning application submissions for the C and D sites will require environmental impact assessments.

The Humber region is the UK's largest energy hub, contributing circa £18 billion towards the economy along with 27% of the UK's oil refinery capacity. West Newton borders a thriving cluster of world-scale chemical and energy operations at Saltend and numerous other locations within the Humber estuary. The cluster currently relies upon significant oil and gas imports from overseas. These imports come at higher cost to the UK and with an increased carbon footprint.

The Zero Carbon Humber and energy cluster has been identified by the UK government as a funding recipient to develop the world's first carbon neutral (net zero) industrial cluster by 2040.

Union Jack and Reabold Resources Plc, the Joint Venture Partners ("JV") believe that West Newton has the potential to provide feedstock to a Humber net zero project replacing the requirement for imported hydrocarbons while simultaneously developing indigenous energy sources, contributing to the economic welfare of the Humber region.

With a view to advancing the above vision Union Jack and Reabold Resources jointly commissioned GaffneyCline and Associates Limited, an international petroleum consultancy to conduct a Carbon Intensity Study over the West Newton hydrocarbon project.

The GaffneyCline study highlighted the following:

· The West Newton project has an AA rating for Carbon Intensity for its potential Upstream crude oil production

· Carbon Intensities at West Newton are significantly lower than the UK average and compared to other onshore analogues

· As development proceeds and project knowledge increases, there is potential to improve the Carbon Intensity by further reducing fugitive flaring and venting emissions through the use of best available technologies

Union Jack's focus is to minimise the carbon footprint generated by its hydrocarbon developments in the most efficient way possible, whilst continuing to contribute positively to the growing demand for energy and hydrocarbon products in the supply chain.

Slight correction:
'UJO's holding will reduce from 50% to 35%, and their drill costs will reduce to 27.5%. So they'll have 15% more of the licence, but will be paying 7.5% less of the cost to drill it.'

Genghis
A farminee will be paying back costs and a promote. Previously I believe UJO would have been paying at least 30% of drilling costs for a 20% holding (minimum of 1.5 times holding percentage - the first 10% was 20% of the drill costs). They have increased their holding to 50%, but on paper reduced their proportion of drilling costs to 50% (1 times holding percentage). They will want to farmout probably 30% of the licence with the farminee paying 45% of drilling costs (plus a portion of back costs). UJO's holding will reduce from 50% to 30%, and their drill costs will reduce to 27.5%. So they'll have 10% more of the licence, but will be paying 2.5% less to drill it. The £100k could well be covered by the back cost payment.

Hundreds of millions of shares were sold, and the share price dropped from 0.27 to 0.18 in the 10 days before the company made any statement. Not ideal really.

Because it increases your holding while reducing your cost. I don't know how else to put it to help you understand Ghengis15.

Genghis15
'What is the sense of buying an increased share in a project - leading to an increased share of costs - if it is then "subject to farm out"?'
Because they have increased their percentage of ownership and reduced their costs of bringing it on. Very sensible. Even if Shell owned 100% of North Kelsey they'd farm it out. That's how it works, so a number of companies bear the risk.

Lenin, we are in Q4, which is Oct, Nov & Dec. Therefore Wressle is on track to produce by the end of December.

'Very strong oil shows' in the Cadeby formation during drilling WNA-2.
https://www.brrmedia.co.uk/broadcasts/5f76f63fc4d0076f2b93af05/reabold-resources-progression-at-west-newton

RNS 5th October
'the Cadeby formation, from which the West Newton A-1 well recovered oil saturated core and the WNA-2 well encountered oil shows.'

AJamesW, I suggest you take more notice when you are given correct information so your research improves. It would seem it needs to.

That's a new article with old interviews.

I expect the drill bit needs replacing. Perfectly normal.

gonzalez -
'So you think that DB set his placing price after the leak about a placing??'

Exactly. Once the share price is diving no placee is going to pay more than the current share price. He would have to get the best price possible in the circumstances, and I believe if there hadn't been a leak he could have got a placing price nearer 0.25p.