Member Info for wizard125

Sedoc

3 wells for the Portland up to 6 for the Kimmeridge 3.45- 3.55 minutes in the interview.

I suppose subject to planning and logistics.

Maybe 6 will not be necessary with KL4 flows & the mixed Kl3 & 4 rates.

We shall see.

£20 million per well per year Portland & Kimmeridge?

SS said 3 Portland wells & 6 Kimmeridge wells in his interview so 9 × £20 million =£180 million revenue per year.

Not bad for 1 site × 10 sites £1,800,000,000 revenue all for 1.7p per ticket which does not put any value on any other assets.

SS only quoted Portland value based on 30% recovery not the up to 45% possible predicted.

Certainly not ramping.

You have got to be in it to win it.

The future is bright the future is UKOG IMO.

Argus1

Brilliant news but the best is that no new funding or dilution is needed!

Ocelot

Maybe they think that Angus will be bought out & there will be a big profit to be made.

Sedoc

UKOG raised £10million in November 2017.

These accounts are up to 31December 2017.

I do not know at which stage UKOG made its payment to HHDL for the 2018 works schedule but if it was after 31 December 2017 it will not be shown in these accounts.

Sedoc

You write about UKOG being funded for 2 more holes.

As I said before if I remember correctly the funding for HH operations, HH2 & sidetrack came from funding from 2017 fund raises.

I am presuming this cash has been set aside for this event as it was part of the reason for the raise & is part of UKOG's integrity.

The reason it may not show in UKOG's accounts is that it may have been transferred to HHDL which is a private company for which I don't think that they publish the accounts.

The £12.5 million raised in the summer of 2018 was for a work schedule for 2019 which looking at the new presentation has been pushed back to 2020 apart from the planning applications.

I am not sure if these funds will now be used to accelerate the HH 3,4,5 & 6 & water injection wells with the contributions from Tellurian 35% stake & the other HHDL partners.

This may allow revenues raised from Ukog's share of production to fund the 2020 work program.

466 days for work & EWT is similar to the 18 month production licence & Brockham except we will have more completed Wells ready for full production at the end of it.
We should also have planning permission for further Wells & infrastructure approved if not already being drilled & constructed

There seems to be quite a bit of speculation that UKOG will be looking at new placing this year.

This in my opinion will not happen.

If you look at the RNS covering the 3 placing for £5.5 million, £5 million &£2 million between the 15 June & the 4 August 2018 these funds were raised for a work schedule for 2019.

Looking at the new presentation the scheduled work apart from the prep work of the planning permissions is now scheduled to be done in 2020 after HH2 & the sidetrack are tested & in production & it is likely more wells will also be drilled at HH & put into production in this period according to the scoping document schedule.

The flow testing & production revenues should provide cash flow for the funding for growth & the work scheduled for 2020.

True.

This will all provide revenue to help move things forward especially if KL4 is really big.

That is why I think the tested KL3 before KL4 so they would have KL4 revenues for longer.

JBG

They plan to continue the flow tests right up to the spudding of HH2 & the sidetrack which will then be flow tested prior to going into production in the summer of 2019 all of these will produce revenue.

It is the new wells from the scoping document & the Kimmeridge that will not get into production until 2020.

One of the other things that bothered me re the KL3 test over the Portland test was how much better the Portland flowed once they had re perforated the well.

No new perforations were put into KL3.

I do not know if they will re perforate KL4.

Sageman

I did not see your comment but it is the point behind my post of last evening.

Which mean that if KL3 only produced an average of 342 BOPD stable rate instead of the 500 - 700 BOPD stable rates.

Which SS said brought $1 million profit per month paying for a well in 3 month this imo is a likely reason that the share price has dropped as the self financing would take a lot longer.

Mark shares

The funny thing is SS & DL have not been believed since 2016.

Now there is no doubt there is oil at HH & it is flowing at commercial rates. (The second highest flow rates for a on shore well in the UK & this is only at the flow test stage not a production well)

One thing that SS said at the beginning of the flow tests was that we need to not get ahead of ourselves with our expectations.

All has gone fairly well in my opinion & I look forward to the KL4 tests, the drilling of HH2 & the sidetrack tests leading to production after she Summer of 2019 which if I remember correctly was covered from the previous funding round not the one from the Summer of 2018.

We are all a little disappointed following the RNS yesterday & the share price drop.

I think the market is as well as at the beginning of testing there was a great deal of talk of 500 - 700 BOPD stable rates brining UKOG revenue of $1,000,000 per month & paying for a new well every 3 months.

Unfortunately the stable rate reported in the RNS was a average of 324 BOPD which would give revenue of approx half that amount.

If there was meant to be an adjustment for the 9 days shut in it has been badly written but this would still bring us a little short of the minimum 500-700 BOPD & $1,000,000 per month predicted and I think this is why the market has reacted as it has.

I still think this is a great result for an initial onshore well & indeed only the flow test where we will not achieve any where near production levels & KL3 is predicted to be declared commercial.

At this stage we still have KL4 to come which should achieve a third commercial status but more importantly than any initial flow test rates will be the oil in place & recoverable rates in the CPR.

THIS I think will be the big news especially if KL3 & kL4 are joined as this could raise the oil in place predictions quite significantly.

Maybe the market thinks that this was the KL4 result as the Kl4 test was scheduled before Kl3.

So that means on the right choke kl3 can & will flow 700 BBL oil all day every day.

Legalese

That is quite some statement if I understood it correctly.

It implies no depletion in flow rates only a restriction of oil flow depending on the choke used at the particular time as the bottom hole pressure was maintained at 800psi throughout

Different chokes were not necessary to stabilise the flow & water content as it was 100% dry oil apart from an occasional bit of completion brine.

Is that correct?

If so many shareholders are concerned why not attend the AGM & secure a vote that no further extensions will be allowed to the directors share options scheme.

The downside to this is that if they take up the options they can sell them at any time.

The options are at present accrued as part of SS wages so it is not that he does not have skin in the game & he would have to pay the additional fee to buy them to sell them.

If he does not buy them eventually he will loose the options & the large profit he could currently take on his 85,000,000 share options with a first level buy price of 0.4p

I think that you should really ask yourself if you are better as a shareholder with the director holding options or no shares at all as there is no rules to say that once he has shares he has to keep them & can sell them at will without giving any reason.

Following a sale of the directors shares you would be notified that he had sold but not know what the reason was.

Would you then be better off or up in arms again?

What gives you the right to dictate how SS spends his earnings or can we come & tell you what you have to buy or not with your income?

I hope so Rodders.

Lots of challenges ahead with lots of opportunity.

Last time the share price dropped like this before a RNS UKOG bought Prim, Gunny & Solo.

What could be going on now?

Alba has already raised funds will it be enough to cover the next phase of HH development?