Member Info for Simon_Said

Law, I suppose you're accusing me of some kind of glory-seeking by being supportive in people's darker hours here, but you're posting now purely to gloat and say I told you so, and justifying it by saying 'But I was right and if they'd listened to me they'd be better off'.

Except that I don't think you made any specific predictions, just generalised stuff. It doesn't give you the right to 'credit' for things going wrong in a way you didn't perceive.

I make no claims to being 'morally superior' to most people, but perhaps a bit to those who come here solely to stoke their own egos.

And that's just 1 of 2 wells planned so far (likely to end up with more), and more significantly this is just the oil. The gas, the original target, comes later and the well is in an area that badly needs gas, and has the infrastructure to easily accept it via a short pipeline tie-in. They've also intercepted multiple zones with above-expectation finds to be looked at in the log.

And this is all low-cost, as S&S put it 'highly economic wells'. Could well see lots of additional wells pop up here and a solid income stream develop.

Thanks for that link Badger - so similar wells have produced around 1000 bopd. Blimey. This just got awfully interesting...

I used to hold HNR (sold out in the 18s) but have kept half an eye on proceedings. What I haven't felt the need to do, at any point, is rub anyone's nose in the descending share price. I met good people through this share, hard-working well-meaning individuals trying to make money to better their lives and the lives of their families.

Today's announcement makes no difference to my personal wealth, but it's sad to see people I knew suffering, and sadder to see the lowlifes coming here to scream "I told you so!" and make people feel worse. Just because you were negative on the company, doesn't mean you get any 'credit' for 'predicting' anything - the narrative here has been complicated and unexpected to everybody, and you did not predict the details, just a generalised doomsaying.

HNR was no longer for me a long time ago so I signed off and pursued other interests. Maybe have some class and do the same instead of taking joy in other people's losses.

I hope those who lost out here are doing ok. No smug crap from me. Wishing all of you all the best - this is a ****ing tough game.

More that if there is good oil below, the high-pressure gas will make it a LOT easier to recover. Could make for some impressive flow rates. The oil would be extracted first, using the pressure of the gas to fill the reservoir as it's depleted by production, and then finally the gas itself will come through.

No, YOUR mum!

The UKOG numbers refer to potential exploitable resources over time - the failure of any single well doesn't in itself denigrate this (I hold no shares there but that's not the point). The target all these juniors hope for is discovering a new field which can then be exploited by multiple drills over time, or discover that a geological formation thought to not be fruitful may in fact be rich with hydrocarbons.

UKOG continue to attempt this too, though as I understand it their rather radical idea of recovering oil from the naturally-fractured Kimmeridge shale has proven extraordinarily difficult operationally due to the nature of the source rock. The reason that excites them is the sheer size if they could find a way to get it out (hence the crazy billion barrel numbers). I may have gotten parts of this wrong as I have not held shares there for a long time.

Rathlin's West Newton play is tapping the more conventional Kirkham Abbey Formation (KAF) which has known gas content. Historically this has proven difficult to extract (various attempts across the region often encountering water ingress), but West Newton looks exciting as it might be the sweet spot to finally get at the resource. Indeed we now know from the drill that water ingress has not occurred here. Furthermore, the surprise discovery of a huge oil column under the gas cap within the KAF is an amazing surprise, and could suggest a significant areal extent (i.e. a large lateral extent) for this pool of oil. And of course they haven't even yet explored the Permian basin below, which is a huge part of the North American oil industry and looks like a great oil target in itself.

Happy to be corrected on any of the above as my geology qualifications come straight from Google. Fascinating stuff though, and with some context you can see just why David Bramhill as well as RBD's BoD, Malcy et al are so excited by this find.

The trading halt is standard practice on the ASX during these situations:

ASX Listing Rules, Guidance Note 8, Section 4.6: The Use of Trading Halts and Voluntary Suspensions to Manage Disclosure Issues:

'If the market is or will be trading at any time after an entity first becomes obliged to give market sensitive information to ASX under Listing Rule 3.1 and before it can give an announcement with that information to ASX for release to the market, the entity should consider carefully whether it is appropriate to request a trading halt or, as an exceptional case, a voluntary suspension.

The application of a trading halt or voluntary suspension in an appropriate case can often be beneficial for both the market and the entity. It will ensure that the entity's securities are not trading on ASX and other licensed securities markets in Australia on an uninformed basis. It will also signal to investors that market sensitive information may be about to be released and that they should be wary of trading in, or entering into derivative transactions over, the entity's securities off-market or on other trading venues. Both of these things may help to reduce the exposure of the entity and its officers to the legal and financial consequences that could follow if the entity is ultimately found to have breached its obligation to disclose information in accordance with Listing Rule 3.1'

Exactly so Fyoz. They said they will ramp up the investment amounts in the right circumstances, but very much doubt you'll ever see them putting £30m into a single project - it's too large relative to the market cap.

They have said to me in person as well as in interviews that the plan is as soon as the market conditions correct and these projects are no long available at distorted discounts (long tail of the 2014 oil price crash and the US fracking boom), they will liquidate assets as they mature and shut up shop. They do not expect Reabold Resources to exist for more than a couple of years tops.

It was laughing gas and the entire crew became unable to work due to the giggles.

https://www.malcysblog.com/2019/08/dgo-reabold-union-jack-petrotal/

'With the partners now confident of a cracking discovery at the A-2 well the running room in the rest of the licence means that for both companies there is much more upside than has been demonstrated by the market today. For example the market cap of Reabold could be multiplied if all the potential upside is proved and I have no reason to believe not, this is getting into the territory for proper M&A speculation which I for one wouldn’t rule out for one minute. Onwards and upwards….'

Could be so. I imagine it'll be minimal as once oil is flowing during the test they can start selling it and contributing that towards costs.

Lol

Could well be that the separator is overwhelmed (it's a small testing unit only) and a larger unit is incoming. Note that this would be the time to make the switch, between cleanup and the flow test itself.

There are scorch marks on the separator in these photos that were not present when delivered, and the flare seemed to be excessive during the cleanup.

They could well need a bigger separator for the flow test than was required for the cleanup phase.

Could be issues with the separator requiring maintenance or replacement. Could be that a higher-capacity one is needed or one with different features due to unexpected hydrocarbon composition. Could be any number of reasons.

Pete, why are you and Adrian so utterly gleeful at anything that might be bad for West Newton? Do you remember all those times that awful trolls ruined the UKOG board with their nonsense? You guys have somehow become them. Please try to reflect on what you're doing.

Wow maybe you'll be lucky and WN will fail and UKOG shareholders immediately all become millionaires as a direct result. Somehow.

The RBD investment was a key signal. The directors of all partner companies will be in a close period (i.e. not allowed to buy or sell shares), thus we don't get that useful signal of director buys to know things are going well. Incidentally this is why we don't see a lot of director buys in listed companies in general, they're so often in closed periods (not that this stops investors lambasting them for it!). But Reabold were able to signal in a different way, by increasing their stake in Rathlin. No rules to stop that, Rathlin isn't publicly traded.

Pboo - amusingly, when I googled barrels of oil in a road tanker, the 300 figure I got was from none other than UKOG's website.

Well a tanker holds around 300 barrels of oil, so 4 a day is 1200 barrels a day. And of course the longterm plan is to connect to infrastructure. And there's the whole principle that all they need to do is prove up the license area to be able to sell it on to a major.

Yeah, not worried.

Brent is trading at around $60, but lets assume they're achieving $55. 200 barrels a day would be $11k a day, or around $330,000 a month, or over $4m a year. Granted this is before costs, but this is just from one well, and the costs of course scale. When a company's market cap is under £50m, a few wells like this are extremely meaningful.