Member Info for Vulcan998

agree with all the positive comments made on here especially the summary list from Rodders BUT I have a query.......

He said each barrel is worth £15 - £18. Is this the value to UKOG alone? The value to HHDL should be a lot higher as production costs (if I recall correctly) are c$10 - $15 once in production and given the current price of oil there is a big difference.

Perenco or Total IMHO

ahead of the SS sharetalk today....was hoping for news on finding more sites around HH

just had a Friday top up

I would not be surprised that after EWT during the production testing (immediately after EWT and prior to spud of new wells) if we are not getting more than $3M of revenue for HHDL per month......so actually next year will be quite good for UKOG cashflow as the ongoing cots during this production testing will be low.

Was it deliberately written in a way that hid some of the critical information from the major oil players so they would not come and buy us?

waiting for either production (and fantastic dividends) or a big company to buy UKOG (probably Perenco or Total

If we had been able to see the gas collected through the test is would also be worth over £1M (commercial rate) and at the moment as daily gas prices have tripled this week due to demand on the spot market it would have been a lot more.......

With gas to electric conversion there would have been losses in the process BUT as we were testing and not constant flow I suspect the gas alone from one well will be worth £1M per month in electricity produced (rough estimate)

and in the UKOG RNS SS states
We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production that will take us up to the spud of the HH-2 and HH-1z production wells in 2019."

So production from end of EWT to the spuds of the new wells in 2019? Great if true as real cash flow

"We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production that will take us up to the spud of the HH-2 and HH-1z production wells in 2019."

So is SS saying they are effectively producing (production test) from now to the spud of the new wells?

"- EWT results to date indicate that the KL3 oil pool "seen" by HH-1 is commercially viable.* Consequently, following completion of the KL4 EWT, continued test production of a commingled KL3 and KL4 oil stream is planned."

This is great news as it is ongoing production following EWT BUT I did not think we had the approvals for this?

The gas is commercial as the extraction costs are fully covered by the oil. Therefore the only additional costs is the gas to wire generator and the amounts of gas more than pay for this.

the extended testing at HH has shown a lot of gas being present (several hundreds of thousands of cubic feet per day).

Just to build on this there are three very large (huge even) gas carrying ships arriving in the UK from the USA this week due to the cold weather starting.

I am not sure about flowing Portland together with Kimmeridge on the same well. Probably different pressures and you do not ant to inject KL3/4 oil/gas into Portland......???
I am not an oiler so perhaps my thinking is wrong

So it has been a long gap since the last HH operational update (the Portland commercial RNS was not really an operational update) ......so I wonder if, due to KL3 and KL4 being linked by fractures, they are waiting till the Kimmeridge testing is fully completed to understand the extent of the linkage, rather than individually updating on KL3 and KL4?
Thoughts people.....

generally a good interview but he could easily be more positive using the information available publicly (he did not mention gas, he did not mention free flowing, he id not mention planning application for 6 wells or the plan to seek more sites in the PEDL)......overall whilst he comes across well he is not a great advocate for Alba or Horse Hill or the Weald.

anyone with L2 like to provide an update?

that the tide is turning and perhaps we may start to go up at last......

I also took this opportunity with 2 small buys......but the price still goes down! Might be tempted to sell something else for a more meaningful buy.

So we will get income from HH in 2019 and (we expect) from Brockham in 2018 (some anyway)......not sure why this is not re-rating