RE: Shorting UKOG30 Dec 2019 09:05
Ewqwe1234, UKOG already have a producing well creating consistent revenue over the past year that exceeds the current share price.
HH-1, 300bopd gives us at least a SP of 1p.
Reworking HH-1 to optimise flow for the production phase could see flow increased to 600bopd or more considering they have only flowed the Portland OR the Kimmeridge so far. Combining the two plays with more open choke settings should see much greater daily flow rates.
So HH-1 alone could see us at 2p plus in the coming weeks.
Add on HH-2z, already shown to give 600bopd, then we're looking at 5p plus.
Note a column of fluid only 60% oil is heavier than 100%. So once the water is isolated I would expect the oil to lift much easier and hence 600bopd plus..... could see that 1000bopd taget smashed.
Once HH-2z proof of concept is shown the next four wells to be drilled at Horse Hill could very well get priced in.
Let's say conservatively 4p per well. Jump to 21p plus.
Bring in the potential later in the year of the look-a-like IoW fields, Dunsfold and Broad Bridge.......££££
Not sure shorting right now is a great idea chap but good luck with your play. You seem reasonably balanced, so genuinely, good luck.