Member Info for StarBright

An early (in the context of a 150 day test) is possible, but no-one should be counting on it. Much less expressing disappointment/anger/frustration should one not appear. Posts here saying that one is "required" because of a vague tweet can be safely ignored...

“May’s back-up plan”?

Honestly, the nonsense posted on this board defies belief sometimes. It really does.

“SS should be flowing the oil by now...” Really?

HH-1 is being subjected to a 150 day extended flow test. Work on this started within the last few days.

Either you know that, in which case you and your posts are a nothing more than a vexatious irritant. Or you don’t know, in which case you are sadly ignorant relative to your fascination with UKOG. Not a great choice really.

Ready. Fire. Aim...!

Note the last line from the call invite:

"Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, is pleased to announce that it will host a shareholder conference call at 17:30 on Thursday 05 July 2018 to update analysts and investors.
The Executive Chairman, George Frangeskides, will host the call and will respond to pre- submitted questions during a question and answer session.
...
...
...
No new material information will be released during the call."

mannan, would you mind using the "reply" function rather than starting a new thread every time you respond to a post? It would make this 'board so much easier to read...!

UKOG is an oil exploration company. It's raison d'être is to raise capital and spend it on speculative exploration.

It is nonsense KarlovyVary to say that "...other things being equal, UKOG’s share price tonight would be north of 4p rather than just north of 2p...". If the £30m or so of capital hadn't been raised, the speculative projects at BB, HH and elsewhere wouldn't be being progressed. Exploring, acquiring licences, drilling and testing are seriously expensive activities! How are the trucks full of equipment we've seen going in and out of BB and HH paid for? If none of this activity had happened, the "long term shareholders" you reference in your illustration might well own all of UKOG rather than half. But without the potential pay-offs from the projects funded by the capital raised, the company's market cap would necessarily be a fraction of its current level.

At the moment the market believes that the company is worth about 4x its net assets. At the moment the market believes that the capital raised during the last 3 years has been deployed productively. We are all - of course - free to disagree with this valuation; either by holding shares if we believe the market valuation is understated or taking a short position if we hold the opposing view.

Lots of ill-informed posts here regarding placings, dilution etc today. Largely formulaic recycled angry rants from other share stories trotted out for no apparent reason.

Cash hungry resources companies don't have the luxury of operating cashflows to fund their activities. They have to return to the well time and time again to seek equity or debt funding for every venture they look to develop. Rights issues are impractical (time consuming, complex, inefficient, costly) with such a disparate register of PI's.

So placings are the norm, Holders should expect them, and not wail and gnash their teeth each time one comes along!

The mathematics aren't that difficult, but are clearly not well understood here. Here's what has happened with UKOG in the last few days. I have excluded the impact of the YA conversion(s) as they are a different topic.

At the end of June UKOG had 4.85bn shares trading at 2.1p, so market cap £101.9m. Since then it has It issued 350m new shares in return for £7m. All other things being equal, the company is now worth £108.9m and has 5.2bn shares each valued at 2.09p.

This is not a big deal folks. The £7m raised doesn't go a long way when you look at the costs associated with drilling and testing. It's wrong to suggest otherwise.

I think that the company has behaved perfectly responsibly and sensibly here. Those suggesting otherwise either (a) do not understand or (b) are being vexatious; I guess both could apply to some.

Holders shouldn't be distracted by their histrionics about "mates rates", "poor hoodwinked PI's", "pump and dump" etc. The placing(s) were done at just a 5% discount, and seem to have been easily absorbed.

Onwards....

Spot price won't have as direct an impact as your calculation implies crypt0r.

I think that there were about 3.5bn shares in issue at the high point last summer. Although 11p was touched, it was only momentarily and for no volume. There was fair volume for a few days around 8p, so at a market cap of £280m

When the dust settles after the recent placings/conversions etc, there will be 5.2bn in issue - an increase of 50% from last summer.

£280m/5.2bn = 5.4p

You should worry more about next saturdays Swedes than last nights Finnish...

It's value for oil production is not yet established. Further testing and (subsequently) work on commercialisation will be required. That's precisely what a company like UKOG does, so that's what it is doing!

These funds haven't been lent. They are equity capital. Big difference!

That's nonsense ART123. As is any post referencing "Code 1"!

The most likely explanation is simply that one of the expected placees from last week failed to get their paperwork done/through compliance/signed-off in time for the deadline. They still wanted the shares (and little companies like UKOG like having equity capital in the bank) so an extra iteration and announcement has been necessary.

It's a small number of shares, at a low discount so no material dilutive effect.

Nothing to get vexed or worried about.

Trde - even by the low standards seen here, your attempt to incubate a “rumour” is pathetic drivel.

Brainer, what UKOG told the two “new” investing institutions that prompted them to invest at 2p when there had been a recent placing at 0.9p is a great question. I doubt we’ll ever get an answer...

Your latter point about the RNS being released pre-close “...to shake the weak PI’s out...” is conspiracy theory nonsense though.

TWO new II holders therefore no TR1 likely unless one of them is tiny.

Must have been our friend billy buying at 10% over the ask then.

Come on...!

That will probably be from a trade executed earlier in the day and reported late.

150m shares to YA, 250m to "2 II's". That's (very) roughly 10% more shares in existence than at the start of play today.

Opening SP was 2.2p, effectively 1.98p after 10% dilution. Closing SP is 2.3p; a rise of 16.2% from the opening price after adjusting for dilution.

Dilutions like these are fact of life for investors in cash hungry/consuming resources companies. The best that can be hoped for is that the improved sentiment from clearer funding feeds through to the SP. I think that is happening here. Believers in UKOG and the Weald oil story should sit tight.