Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Ibug
The interim period covers September 21 to April 22 and the price of oil has been up to approximately $1.25 the other contrabutory factor is how the value of he dollar has changed from $1.40 - approx $1.25 today. Looking at he whole picture production has reduced.
We will see after the company review the best way forward for water injection for the Portland if the reduced need for balancing water and oil will increase production, revinue and profits.
If production had been in the region of 200 - 250 BOPD over the last couple of years we would not be having this conversation today.
Ibug
Yet again your comment only covers half the picture.
The interim figures covering the period from September to April are due by the end of the month. I will not prejudge the outcome of what has happened with the reperforation and any benefits that could come from water injection.
Hopefully with the interim statement we will receive a update on the Portland and reopening the Kimmeridge.
Maybe reopening the Kimmeridge would be the best option who knows we will see.
Mirasol
Some may see that as forward planning for growth and you also don't seem to have considered all the options open to the company for example farm in, sale of assets once a new CPR is in place or reserve based lending. Some solutions may be helped by the broader base of the company. Are you a expert in the field or do you have inside knowledge?
gwilliams71
Exactly.
The company carried out the EWT as the operator and probably know the prospects better than anyone. On that basis it bought out Tellurian. I understand the water issues and costs of disposal. For me the first key is the water reinjection which will allow a production and profits increase as they don't have to balance water production to minimize costs.
We need to see the benefits to the flow rates following the last reperforation of the Portland which have so far not been seen due to the water management issues which should then be resolved.
If this is successful and the market can see the benefits of the development at Horse Hill it will start to unwind the current position where UKOG appears oversold when the value of the production from the developed site starts to come more apparent.
This just goes to show you how long it takes for oil and gas projects to come to fruition in the UK. Action is necessary now for UK energy security.
UK business Secretary announces:
Jackdaw gas field - originally licensed in 1970 - has today received final regulatory approval.
We're turbocharging renewables and nuclear, but we are also realistic about our energy needs now.
Let's source more of the gas we need from British waters to protect energy security.
Nothing yet.
https://acp.planninginspectorate.gov.uk/ViewCase.aspx?caseid=3268579
Skwizz
have to admit I used to be a lot more positive, until the dilution began.
Optimistic once, realisation of the scam since.
(Doesn't mean I won't still flip it if I think I can make a buck though, heheheh).
;)
..............
It sounds like you are becoming qurious again?
nomlungu
Maybe it is not apparent but I do have some of the same concerns as you and likely many more shareholders.
I firstly have to say that I am pleased to see a number of changes in the management and administration of UKOG from last year and also that shareholders will now be given the opportunity to buy shares in fund raises on the same terms as new investors. I wish that dilution was not necessary or there was some benefit long term for long term holders who have supported the company to get to where it is today, many of whom are in at much higher share prices than today and would like to see a return on there investments or have the confidence that it will come.
I also have to consider that UKOG is only a small company who has experienced many delays in cases during planning and the courts, while looking to grow its asset base it only has a handful of permanent employees. While using the necessary outsourcing of servicing though specialist companies like Zetland for it's planning and solicitors and barristers for legal issues.
As I said yesterday maybe not as clearly as I would have liked 9.8 billion shares is a great many and over an additional 60% of the share capital for one year. The key questions are? Is this all to be used in one go or is it to be spread over a number of raises? and how best the BOD could utilize the fund raising to best effect for shareholders and the company to minimize dilution while providing confidence to shareholders and the market?
How could this be best achieved, maybe a general meetings for projects as we go along so it is clear to investors what the funds are for and the benefits that can be achieved providing cost, benefits and result reports. The problem with such large raises as we have had in the past and what is now being requested now is that it seems like a black whole, money gone. While no tangible results or benefits for investees are perceived leaving angry and disalusioned shareholders.
This may or may not be the case as despite all claims of UKOG going bust it defies gravity and each individual project is managed though a different individual company linked into the parent company which likely means the parent company does not go bust even if a individual project was to fail but shares the benefits and loses through the parent company.
What we also have to take into account is that it is early days and as success comes the projects and benefits will likely increase but the company has a long term outlook not a short term outlook and it's projects take time and money to bring into fruition but it should also have long term benefits while many of the costs have been paid upfront.
nomlungu
While I am no fan of dilution. I have to ask what 9.8 billion shares would empower.
Firstly the placing price at the time would be very relevant for one thing.
If it would provide continuous drilling at Horse Hill to bring all six Wells and water injection into fruition. Provide further development in Turkey and drill sidetrack and EWT Loxley to complete the Kimmeridge appraisal providing a Weald wide CPR.
It may not be a bad thing if it made UKOG fully funded with revenues coming on line from the developments at current oil prices.
Let's see what the rest of June brings UKOG's way.
Thinking of what happened at other companies something like 88 something or other. The placing price of approximately 0.4 rebounded to over 5p when the drill was enabled!
Now Horse Hill is all systems go things have changed and the dog needs to see the rabbit!