Member Info for wizard125

Skwizz (cont)

That was also for UKOG's employees.

Skwizz you are both a holder & a trader I am a holder & sure I am underwater & potentially plenty to lose here.

My decisions are firmly based on holding & seeing this 35% purchase through despite the short term difficulties that have presented them selves in the middle of the dilution as a result of that acquisition & while I hold a paper loss at present am not prepared to turn that into a actual loss even as even if HH2 was not to work there is 4 Kimmeridge wells with planning permission at HH with a minimum of HH1 Portland revenues to move forward.

My thoughts over such difficulties take me back to the last time UKOG had a YA loan for £10 million for the development & drill of BB which did not end well on 23 February 2019. From that situation UKOG rose from the ashes like the proverbial pheneox despite all the doom & gloom raising £12.5 million for the development of HH EWT then subsequently bought out the other partners.

I can feel Adrian's pain & disappointment but I hope after all his hard work in promoting UKOG & highlighting the the success's that he does not miss out on the spoils of UKOG's success's as this turns upwards & we have a extra 35% NPV & revenue of which as shareholders have not yet benefited.

Skwizz

I sit here reading your post, & myself see the fears, the potential & opportunities.

It is indeed a difficult one but to try & make sends of it.

If I put myself into SS position what do I see? I see a company which has 3 commercial layers with a completed EWT to which he will have done his own personnel CPR. He will see this HH site with HH1 HH2 drilled & at least HH1 flowing & some data from HH2 with 4 Kimmeridge wells to drill on this site & another number of potential sites within the HH licences with 86% currently owned & if it is believed successful would want 100%.

The majority of the current wells are from the Portland including the proposed IOW licences, but the key question is is the Kimmeridge.

The Next wells drilled at HH, Dunsfold & Aratton will not only a appraise the Portland but appraise the Kimmeridge as well.

These wells from the Portland are aimed to provide Net Assset Value & cash flow for the development of the Kimmeridge which UKOG has until 2022 to bring a field development plan to the OGA.

I ask myself if I was SS with the knowledge & experience that I have as the operator why would I want to publish a favorable CPR & then buy out the other partners & licence holders having given them that information raising the price of any buy out when my duty is to make the best decision for the company & it's shareholders.

I see PEDL234 with a well appraisal in planning for a appraisal of Dunsfold Portland & Kimmeridge layers & potential return to BB for a further Kimmeridge sidetraemployees ee Arreton is now in planning for 1 site with a 2nd site plans being finalized. Would I be putting these plans in place if I did not see them coming to fruition?

Many ask why SS does not take up options & make decisions based 100% on shareholder interests to raise the share price. ( My opinion is that he does look after shareholders interests which may seem surprising but for me the answer is that in the short medium or long term interest of shareholders? & if he was personally a shareholder would he take the decision on his personal short term interest or the companies & his long term interest?

This leads me to my next question which is as a result of the changes regarding corporate responsibility within UKOG & a renumeration committee being set up with a experienced non executive director who was the former finance director of Hurricane energy & Total, which is how should the CEO be rewarded for his achievement's over the last 18 months which was 2 years at the point of these report & accounts being published? (There seems to me a conflict of interests for the CEO's position regarding being a shareholder & making decisions at is stage. This is why I believe that SS has not taken up his options & let them lapse & been alternatively rewarded with a bonus & more options at a higher price for him & all UKOG employees for the future which in my opinion gives him not only a duty of care for shareholders but als

penguins

I have a feeling that SS through you a 'Red Herring' with the Kimmeridge sidetrack to HH1.

Time will tell as will the production flow rates. Patience!

Thank you Mr008 I think that clarifys a number of issues.

We also know that all oil currently being produced is from HH1 Portland.

Skwizz

Quite funny but it all looks like a plan to me.

I quote 'sometimes all the stars in the heavens line up' by DL Spring 2018.

I see this starting to happen with Tellurian gone Alba & Dorremous in the wings. HH Portland in full production by September & the Kimmeridge next inline. This closely followed by 2 planning applications for the Dunsfold & IOW drill & apraisal.

The question I'm asking myself is will DL return to UKOG?

My gut says not while UKOG remain on aim. SS still has work to do.

It could be a major year. Watch this space!

Penguins

My thoughts were HH1 Portland in production, but H2 held back or on minimum flows as per new OGA instructions.

Penguins

That leaves possible restrictions by the OGA in light of the oil price & over production around the world.

It is important not to exasperate the situation by wells under flow test scenarios bringing extra new oil to a already flooded market due to the drop in use while this coronavirus lockdown persists.

I'm not sure if this would require a RNS from UKOG but they have not previously reported all OGA instructions.

roganjt

It is very difficult to know exactly where the oil is being produced from & everyone will draw there own conclusions & I understand Adrian's as he sees no smoke coming from the oil heater.

let hope that HH2 is good but it will be good to get the overhang out of the way also.

roganjt

If HH2 is flowing Even at 220BOPD choked back that is better than not testing or no flow as I understood from Adrian.

Thanks for your thoughts I look forward to clearing the overhang with so much more to come.

I would hope it is 550 -600 tankers by now if they have been doing any tests on HH2.

Ohmetoe

Have you sold out then. Certainly sounds that way.

Let's all hope that you get caught short then with some tasty RNS!

Penguins

You missed the part which said 8% due to the coronavirus & 13% due to the oil price.

I agree depletion is a potential problem but until all the wells are drilled, tested & in production no one will know.

Rystad Energy estimates that more than 1 million workers who provide oilfield services are likely to lose their jobs in 2020 as oil companies scramble to cut their costs. Companies are likely to lose 8% of their staff due to the coronavirus outbreak and 13% due to the collapse of global oil prices, the consultancy said.

https://www.theguardian.com/business/2020/mar/27/more-than-4000-north-sea-oil-rigs-workers-lose-job-amid-covid-19-crisis

UKOG are nearly at the production stage with production costs of $19.

Most North sea wells have production costs of about $40.

Let's get HH into full production & then scaled up.

https://m.imgur.com/a/HsmGhMp

Interesting article on Igas which mentions Dunsfold.

Igas's daily oil production is 2325 for the whole company which UKOG has planning permission to produce 3500BOPD from Horse Hill.

There Dunsfold plans are currently on hold.

https://drillordrop.com/2020/04/10/north-west-shale-write-offs-push-up-losses-as-igas-focusses-on-east-midlands/

tkr234

If you read the RNS the information is there for you!

Sparticus1974

I and others feel your pain but see this through.

You can see how fast this share price moves & it can turn very quickly.

The financing of this buyout was planned out well in advance as it was detailed in the year end accounts to September 17 published March/April 2018 with the conditions for it to happen.

Not a spur of the moment decision it may be difficult at present but the benefits & rewards should follow.

Phil7390

We should not whatever the situation forget the great work that the eyes have done.

They have made this a very real investment & given investors many a better night's sleep through some difficult times so our thanks as always to the eyes.

Keep up the great work.

HH1AN2

There was a comment from a BKP driver that some of his mates had been ferloughed but I am unsure if these guys were oil tanker driver's & affected by Horse Hill.

Obviously UKOG has assessed the buisness & is being prudent I don't think that we will be notified of the changes, it is not SS style but he is very proud of his team & will want to hold them together for when this is over to move forward as quickly as possible.