Member Info for wizard125

ocelot

I am presuming that it is not like the UK during a EWT where only costs can be offset on the balance sheet & profits will be straight on the bottom line following revinues.

CynderLad

From reading your posts over the last few months the link of you & professional should not be in the same post as there is no connection with the fact that you think that you are fit to judge others is laughable.

Penguins

The only reason there might be a hole in the bottom of my glass as you like to speculate might be for the water injector to top it up!

As for the Kimmeridge it was stated: It is as we expected & it still has a few secrets to reveal.

I wander if you have any constructive suggestions as to what you think they may be?

Penguins

Sounds like your glass is empty but still claiming to be a shareholder.

Oh the joy?

Here is Mirasol telling lies again below!

The reality is HH 1 by itself has a net present value of £4.8 million & a much higher production value for the oil that can be produced.

The value of the Horse Hill site & licences is not reflected in that HH1 net present value alone & consideration should be given to what UKOG paid Tellurian £12 million for it's 35% stake in September 2019 before the planning for a permanent production for 25 years & 4 more wells was granted & the production permit so the current value is undetermined & the future development is yet to take place & bear it's fruit.
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Could SS borrow say £5 million from a bank and pay the loan repayments from any oil sales from Horsehill?"
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No - HH isn't worth £ 5 mm

Well I don't think they need 6 wells for the Portland at HH alone.

As for the currant oil flow from HH1 a nodding donkey would suffice never mind a 1000 BOPD pump which is currently attached awaiting further news & development.

158,000,000 barrels oil per square mile in the ground at Horse Hill times 55 square miles = 852,500,000 B/O in the ground with a 5% recovery rate gives 426,250,000 barrels oil recoverable from Horse Hill alone when the maths are done.

If that recovery rate is 10% that is almost 1 billion barrels oil recoverable!

1 billion barrels recoverable with a net present value of £16.50 per barrel is £16,500,000,000.

I think that would change the market cap slightly!

zyx098

What I am trying to understand is how this equates with the Xodus 2018 CPR statement of the HH portland needing 2 -3 wells to drain the recoverable oil which was stated as up to 45% with early stage water injection.

Obviously HH1 is not early stage 3 years on with a approx 140,000 barrel void to fill but I don't know if there would be different pressures in different parts of the reservoir e.g. where they plan to drill HH3.

ZYX098

Below is a link to the Horse hill environmental consultation documents.

HH2 is not conventionally perforated as you state but the whole well is effectively perforated as it has a slotted liner for it whole 3964 ft length so oil can enter the liner for the entire length or water can leach out for the entire length.

The question is which well the oil will be swept?

The injector is planned for 1000 ft short of total depth of HH2z which could sweep the oil & water to HH2 vertical well or maybe to HH1 where the is a 1000BOPD pump or maybe the new planned well HH3 all of what you will see in the link below.

Scroll down to number 14 download the document & look at page 7 for the plan diagram.

https://consult.environment-agency.gov.uk/psc/rh6-0hn-horse-hill-developments-ltd/

lse337

SS stated that Turkey will be the focus for the next 12 months but the water injector should be installed & HH production increased simultaneously!

mirasol

Why a contradiction?

What does it cost & how long does it take to establish a UK onshore oil production site?

The independently confirmed & re confirmed oil in HH1 alone is 7 -10 million barrels oil in place with up to 45% recoverable with water injection so at 33% recoverable so of lets say 3 million barrels at a oil price of $70 once produced that gives HH1 a production value of $210,000,000 lets say with a $20 per barrel cost per barrel so a profit of $150,000,000 over 25 years.

zyx098

The water injector is to be installed at a depth of 2990 ft along the HH2 side-track why do you think oil will not flow into the HH2 well from the reservoir or be pushed through the natural fracture system to be pumped to surface?

It is quite obvious to me that the void in the reservoir which has been created over the 3 year EWT / production period to get to the production stage would reduce some reservoir pressure & recoverability we will have to see how this can be improved obviously UKOG believe it can be & will not affect the other developments hence the scoping & 6 well permits.

By the way where are Jaykay1 & Jiffybag now with there diatribe now?

Penguin
But whether the field will ever make a real profit (ie oil sales exceed the money spent) is questionable as even more millions will need to be spent on further wells - luckily most of the money UKOG and others have spent so far on HH has been raised by selling shares, not oil.

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While you may be correct in stating that the present production from HH1 is below expectations you seem very missinformed & are spouting your usual negative drival about UKOG.

The money spent to date has not only provided the permanent Horse Hill site with planning permission for 6 wells with production licences for 25 years.

It has drilled & EWT 'ed the HH1 & HH2 wells with environmental permits & water injector to follow which will increase oil production from both wells before the next 2 production wells are drilled & future site developments.

What you conveniently neglect to mention or consider is that the majority of the costs of the site are upfront costs with the majority of the profits being made once the site is fully established in production.

You have also neglected to consider the costs of what this project would cost offshore & including upfront costs & likely time-frames between onshore & offshore development..

Should you take the time to look at Hurricane Energy who tapped the market with bondholders giving it a market cap in excess of £1.2 billion & thousands of barrels of daily production it now has a share price of 1.2p & market cap of £22.30 million much lower than the current UKOG Mkt cap of £31.65 million with it stuggling to survive which will not happen unless bondholders capitulate.

How fortune's can change in this sector.

Mirasol

Time to look forwards not back!

Horse Hill is now 86% owned by UKOG not just 20% and it has a 25 year production licence for 6 wells.

HH1 alone in it's current situation has a net present value of £4.8 million with all the further developments to come.

I think the key questions here are as far as HH1 is concerned is how much that equates to in oil production value & profit & what organic growth can be achieved from that especially if the water injector is fitted.

Turkey is a new venture with its own potential growth in a new direction as is PEDL 234 and the IOW & each will contribute it's own net present value and production profits.

Penguins

I'm not sure if you have missread the article or are trying to bend the facts to your agenda.

The aim is for a maximum amount of oil storage on sight not how much can be exported or not. I have enclosed the relevant part of the article below for your information.

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As a result of the most recent review of legislation and a re-assessment of the site’s storage inventory, the Applicant is able to reduce the need for crude oil storage to a maximum of 49 tonnes.”

HHDL said the reduction had been made possible “through the adoption of more efficient site operations”. It said it it expected to transport about 60 tonnes of crude oil off site each day.

Ibug

That should make the interim results better reading especially with some of the dead wood cleared out.

It also has the effect of making Alba's claim of it's 11% of HH value being £5 million rubbish, now more like £400,000 once they write it down.

What we should not forget is that the HH1 was initially drilled as a test well and has carried on producing as part of the site development process & could yet be further sidetracked as a Kimmeridge production well.

Penguins

Unless you are running UKOG and have the final say your assurances really count for nothing as the decisions are not and from what I have seen and heard never will be yours to make with all you negative speculation aimed at your trading lifestyle.

As I have said before actions speak louder than words:

There are 2 directors up for re- election at the Agm ( Alan Howard the Non executive chairman & Kiran Morzaria the Executive finance director).

Why if you think you know it all & have the experience , knowledge & qualifications to run your campaign to take on a UKOG director role, why are you not doing so?

Back to my previous statement actions speak louder than words & I don't see you accepting the challenge, do you?

Penguins

It's a oil water interseptor to prevent any water contamination from oil.

https://www.cammackandwilcox.co.uk/news/what-are-oil-interceptors-and-how-do-they-work/

Mirasol

It's in the site plan for the Environmental permit on the left hand side of the plan.

OofyProsser

As far as I am aware it is covered by the OGA regulation.