Member Info for spike501

"So Heids 0.3p means market cap of £60 MILLION POUNDS!! I don't think so. I see this sinking below the placing price to be honest. The market for oil is awful as shell approaches sub 10 pounds again."

£60million isn't so daft with a bit of froth for an AIM share - if WN-B and the flow test on both wells confirm what has been proposed, then West Newton is a $1bn NPV field

Anyone who has upticked this post, shouldn't be anyway near a stock market with their money.

Profit does not equal revenue minus cash production cost. Cash production cost does not include depreciation and amortisation or interest payments. There is no profit here at $40 oil and there is not enough cashflow to repay the debt.

“ Unfortunately whatever happens with West Newton now the damage to trust and confidence in the UJO BoD has been done, at least in my book.”

I think you over estimate the importance of trust on an AIM stock - if trust is particularly important, you’re probably not investing in AIM in the first place.

Hot money which is what will drive the peaks will soon forget about all this.

Assuming this is not a spoof question - no, the OWC is one of the key determinants of the total oil in the reservoir. Its not a bout well placing its about reservoir size

If your 3p still stands why are you chucking your toys out the pram on some short term share price movements? If you really believe in 3p you can safely ignore it all and just wait for the windfall - even with 20% dilution this is a ten bagger+ according to you.

"Why would anyone sell HUR today at these stupid levels and based on an update which was predominantly priced in I believe!"

Because its highly unlikely the equity actually has any value - this will limp on no doubt with some spikes over the weeks and months, but its difficult to see anything beyond a highly dilutive debt to equity swap on the midterm to try and stabilise the balance sheet.

"anyone under water, remember it's only a paper loss and this wil come good"

Or has a massive debt for equity swap and wipes out existing shareholders - don't forget that option.

Its fairly clear, barring some unforeseen miracle, that this is not coming good.

"Market Cap is now around half the cash on hand :-)"

The company has net debt.

"Is it just me or have hur gone and done it once again? Filled the rns with endless negativity?"

Have you heard the phrase - "You can't polish a turd"?

"The company who did the first CPR need to be held accountable. This is blatant misleading information, basically fraud."

The CPR is based on the drilling results and information that Hurricane provide - they can't get the OWC, they go on what the data they have been provided is telling them.

."..the company is practically insolvent unless it raises new equity fast imo."

Who'd put equity in? The equity looks worthless here

"We're fully funded for WN and upto first oil at Wressle."

Agreed its tot so oddly worded - funded up to first oil at Wressle, then what happens immediately after first oil at Wressle? Thats right £2million becomes payable as you say.

Totally agree with what you say - debt funding was not possible, or not economic in current environment.

"The well needs production testing to prove it is commercial. You are the clueless one. You would give away £2 million pounds even if the well just about broke even on initial flow rates after being shut in for a couple of years. Rubbish."

You don't get it do you - this is a full production well, not an appraisal or extended well test. It will be opened up to full production rates very quickly, as in days of well completion - if its drilled and then can't flow at an restricted 500bopd, then there is a serious issue with the well and field and no one cares about 2million anymore, it'll best case need an expensive workover, worst case Wressle is screwed.

The £2million is clearly due as soon as well is producing properly, so everyone invested in Union Jack should hope that liability becomes due in October as that will mean everything has gone to plan.

"A good example of how long it takes to first commercial oil is Horsehill"

No it isn't, this is utterly clueless. Horsehill was an appraisal well that was given an approval from the OGA for an extended well test to prove commerciality. That ran for just over 18 months, before a field development plan was submitted and approved by the OGA in March this year and a production licence granted.

Wressle is being put into production with an approved field development plan, directly on a standard production licence.

Its a fact, that its a rumour.

"For those with a short memory or new to UJO we have had a least two majors sniffing around West Newton."

If you believe that, I've got a bridge to sell you.

It would be pretty disappointing, if not surprising if there was a placing at a similar value to the previous one. They needed £5million last time which is a substantial proportion of market cap, where I don't see there is any need to raise anything of similar magnitude this time, ultimately all work remains funded and the only additional cash call is for the Wressle milestone payments. It would take some of the gloss off the additional Wressle acquisition, if it does mean rattling the bucket at a discounted price to meet the extra £1million in milestone payments that it committed them to, although longer term it probably remains a good return.

Just let them get on with running the business and executing on their various projects - they don't need to be distracted by the whims of AIM share price movements. They don't create shareholder value through PR fluff.

Gold and silver have both looked vulnerable to further correction since the large fall on 11th August and I think this now could be the catalyst for it to play out - the FED announcement has increased risk appetite which is negative for gold/silver. Longer term however, its hard to see their aims not being positive for gold/silver

If he is, he looks like he'll be correct