Member Info for Stocktaker01

I’m interested in people’s whim have experience In the oil industry take on this? As we know some gas is being produced at hh though not commercial levels. I’m wondering if this is necessary due to there being a limit as to the volume that can be flared off? I.e. if not utilised could it become a limiting factor as to how fast they can produce oil?

It’s a kick in the balls to Lth however ii I betray could be a positive (I’m not overly confident it wills be the sticky handed type) and look like we’ll be having a cut of alba’s share out of it. Not all bad .... if the flows are good

A lot of upside here in coming weeks. 16 to 20 spread atm a bit off putting !

UKOG are significantly increasing onsite storage. No one gives a sxxt if its 7x500 or 10 x 350 or anything else. When the storage runs low they'll be a tanker there to empty it. Fair?

well said CS. same point I was making.

This is also a Portland sandstone drill. Much more data and examples supporting oil production. BB was a kimmeridge exploratory drill. If you believe what's been said BB would have flowed except for the acid wash reacting with the clay and blocking the perforations. I not sure why the experts could not have predicted that occurring but that's the explanation.

Yes that's true. Difference here is they already know they are in the right spot.

mid was 0.975 at time of trade so no reason whatsoever to believe was anything other than a buy

Generally speaking the debt is holding the sp down short term. However thorpedo is correct we were even lower before the announcement of the tellurian deal. For all the moaning if HH2z turns out to be as good as or better than predictions we will be singing the praises of SS and how he’s increased ukog interest from 20% to 86% over the last few years. I’m not sure that if we had only maintained the 20% the sp would be higher at this stage. In fact I’d say lower.

i think side of optimism is more than fair. I had hoped that the flow testing would be underway by now and the volume would have facilitated YA to sell more. I still think 3p is realistic (2.92) once the sustainable flows from HH2z are known and at least 2/3 of the debt dealt with

5150 per annum. Comfortable even now. Like I say with 900-1000 out of HH2z plus HH-1 = 1200bopd would be around £1m a month profit to UKOG

agree point taken on cash but UKOG have that option. if they were steadily producing 1200bopd they'd be in a strong enough cash position by end feb/ mar to settle outstanding. especially if they was more assured -say £1m a month cash in the pipeline (literally).

I firmly believe Tellurians first £3m is about done. They were forward selling before we even got he news- hence no tr1 ever came. I distinctively remember some massive £400k and 250k trades (sells) on the run up. YA currently stand at 3.9M, with some good initial results and volume they could conservatively covert and shift £1.9m by Xmas.

That's what I'm taking about Ibug take the additional loan facility for YA and pay this 4m off in one. I'm not sure what orderly conditions there are with tellurian but we know the deal with YA. by January we could be down to 4M outstanding to YA under more than manageable terms. Wouldn't surprise me one bit if that's the way it goes. Quite possible paying the last 2m or so cash by the time we have meaningful income from HH2z. If this approach is taken The "light" will be seen come January and YA have an incentive as below to allow the SP upwards of 1.5p. Come January i'm saying I don't think the debt need be the drag it is now. particularly if good initial results come.

I believe the first 3 million to Tellurian is about done. By new year the first 3 million to YA will be done. Post good initial results and take up remaining loan facility with YA to pay off Tellurian (4M). This will be subject to the 3m per quarter terms and 15% of trade per day. YA have vested interest in allowing SP to top 1.5. The higher it goes the more they make under the max 1.35p conversion terms. With he oil income UKOG could prob settle the remaining YA debt at that time - cash. Therefore I believe the drag will be all but gone come January IMO.

Oh please!

That's more like it! For all those explorers out there with aspirations for U.K. onshore energy UKOG looks nailed on to become second only to Perenco in the very near future. Those taking punts elsewhere should think about that!

Even a mediocre result from HH2z will firmly place UKOG as the 2nd largest onshore oil producer in the UK. Wytch farm produced only 4,000 to 6,000 barrels per day in 1984 and eventually peaked at 110,000 barrels per day in 1997. You got to start somewhere.

YA have actually been quite modest in their conversion rate. Even with the poor volumes I dare say they could have converted more. I would love the volumes to bounce so they can convert more and gtfo. Don't forget a falling market does them no favours whatsoever as by the time you consider spread they make sweet FA on their 90% 5 day MVAP conversion price if the SP falls. what this share needs is buyers. they will come but looks like they want solid flow numbers this time round. Believer (me included) are fully loaded up already on this one. lets face it we've had plenty of time to load up!

This is what we've had wrt the core. I.e. the core results have determined where the the horizontal drill has been positioned - the "sweet spot" which is stated as being highly permeable.

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that, following the successful completion of the Horse Hill-2 ("HH-2") Portland pilot well, Horse Hill-2z ("HH-2z") horizontal drilling operations are now underway (UKOG 85.635% net controlling interest). HH-2z aims to deliver a circa 3,200 ft horizontal section wholly within the Portland reservoir's most oil productive zone or "sweet spot", the presence and quality of which has been further defined by the pilot well's highly successful coring and electric logging programmes.


The significant oil saturations and high permeabilities observed in HH-2 core and logs, indicate that the "sweet spot" has likely contributed the lion's share of the 29,568 barrels of Brent quality oil produced to date from Portland extended well testing ("EWT") operations at HH-1.