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Great, the name change has gone through - all they need to do now is work out how to mill everything they mine.

Heid, bravo I got the county wrong by about 15 miles. Its a lot closer then your SP predictions are ever likely to be be.

Personally I don't believe BMD knows anything and is simply playing the odds - it would be an utter disaster if this well showed no hydrocarbons and its also unlikely as its a side track on trend in a mapped reservoir back to a discovery well. Hydrocarbon shows are almost certain - the only thing that matters is what is there (oil/gas/condensate), reservoir quality and ultimately whether it flows which is pretty much what we are all now waiting for.

I don't really see information from a regional well in Lincolnshire, from two relatively small listed companies, would be doing the rounds in the city as BMD claims.

Yep agree, I'm not surprised by market reaction as debt is increasing further. Had they managed to mill what they had mined then they wouldn't have needed any additional debt and the lack of commentary is really disappointing.

There still seems to be a lot of potential here, mining is going well, but until they start executing consistently this is going to struggle to break from these levels.

Mining volumes remain strong but mill production still disappointing and somewhat misleading on the half year update which indicated first half production was reduced by maintenance, but it was now 'largely complete'.

There is a around 7000oz of gold now that has been mined but not produced, question is whether Q4 can be any better.

Its reasonable on an opportunistic basis given the have the cash and mitigates any risk of any complication of Wressle, if as it seems Egdon were running out of cash

Wressle will provide some handy cashflow and it does have a decent impact on the overall operations of the company, covering admin costs and providing some excess cash in the early years - it is a really significant event in the development of UJO.

However, it comes nowhere near to justifying market cap on its - its not going to have a big SP impact short turn. Its 260k of 2P that will be producing and then there is some further potential for down the line development but only up to another 750k barrels.

Its a million barrels in all - $6per barrel in the ground would be pretty generous given most of it remains resources as opposed to reserves.

West Newton remains the company maker.

Malcy basically repeated the RNS and then said he spoke to management who said the remain very positive - its hardly scoop of the day is it?

I wonder if Malcy got a fee from the companies for reporting that they remained very positive?

My interpretation is that they were rather melancholic and a touch disappointed.

How does it look like someone desperate to get out? Is there some sort of emoticon function in LSE that I'm not subscribed to?

What did the buys look like to day - were the some who looked happy to get in? Delighted maybe, ecstatic, thrilled over the moon?

Do we have sellers who were reluctant, or perhaps regretful?

Lenin - how much do you think 260k reserves plus another 750k of contingent/prospective reserves in the ground should be valued at?

Ribeye - re-read my original post.

Ribeye - what's 40% of 2.15million? Less than 1million I think you will find.

Wressle is a tiddler - reserves attributable to UJO are 260k barrels, even including all the contingent and prospective it is only likely to be a maximum of 1million barrels.

West Newton has the potential to be 6 to 10million barrels net to Union Jack

Agree again GaryN - Reabold's investor presentation from Feb-20 showed depending on the result of the B1 they would either drill a second well to target the cadeby further or a deviated well to optimise Kirkham abbey positioning - as the cadeby was not developed here they have gone straight for the deviated well with the sidetrack.

It must have been in plan as they have permits otherwise this would all halt as they updated the permits - why risk testing the Kirkham at not the best position when you can side track it for more optimal results and crack again at the cadeby.

Agree garyn, my read as well.

No one can claim either success or failure at this stage - the market has not reacted well but that's because the update was opaque and the conclusion that can be drawn from that is that Kirkham Abbey is not so well developed at this location.

However this was a large step out from the A2 well and was positioned to target a potential optimal reservoir location in the Cadeby. This was only ever a bonus, so now its not developed the drilling is refocussed to properly appraise the Kirkham abbey, with a sidetracked aimed back on trend with the A2 well, although they do get another bite of the Cadeby cherry.

This was actually part of the plan - in Reabolds presentation from Feb-20 (link below), page 9 indicates the plan for the B1 well it outlines what happens after the B1 well

Drill second well from West Newton B site to either:
• target the Cadeby formation if successful from B1 well; or
• optimise for the appraisal of the Kirkham Abbey using a deviated well

So the sidetrack is being done to fulfill the second point - a deviated well to optimise appraisal of the Kirkham abbey.

https://reabold.com/wp-content/uploads/2017/10/Corporate-Presentation-February-2020-FINAL-05.02.20.pdf

This is not a duster, it does not mean West Newton is a failure. At this stage it just reduces the change further of the Cadeby being a viable production target and potentially reduces the upside of West Newton if indeed the reservoir at this location is not developed.

The sidetrack is now highly significant.

"It's not a failure. We have encountered gas in the primary target and now and doing the side track on the secondary oil target."

That isn't what the RNS said.

Oiler - explain the nitrogen lift please? Where have they indicated they tried to flow test it?

This was a fairly substantial step out from A2 - it appears they have not hit an optimal reservoir, but then clearly they wouldn't test it in that case.

"Why is that not good then?"

Because the announcement gives no clear indication that there is developed reservoir here are at the B1 location in the Kirkham Abbey, therefore they are drilling a sidetrack to try and find it.

Its an opaque update and the general rule in E&P investment is an opaque update is bad news.