The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
While CO was holding over 7%, the liquidity of the shares was less than it is now. The volatility will therefore be less dramatic as over 3% of the shares have been dumped quickly onto the market from the last RNS.
With any AIM share that has a good following and sentiment, you have to know when to sell and Chris Oil has told you that today. Even though he probably realised his mistake of ramping this to 5p only recently being the rich numpty he is. The blind leading the blind.
Whatever the result, you can divide the production rates by 6 to get UJO's share. Wytch farm peaked at 100,000 bopd over many wells, around 100 or so. Now Wytch Farm produces less that 15,000 bopd for all the wells still producing and its almost ready to be abandoned.
Nobody can argue with the 16.65% share that UJO has. I am certain that many have invested here assuming that all of the profits go to UJO. They don't, far from it. Most UK onshore wells will do very, very well to produce 600 boepd so that means UJO get 100bopd for this well and that's on a good result.
What is sad is that Chris Oil has suddenly changed his mind from being a long term investor and telling everyone that the SP could reach 3p to 5p, that he has now sold nealy half is holding before waiting for the result.
He is either now having doubts about his original statements on camera or he was lying pretending to be a long term holder while secretly having a trading plan that others were not aware of until today.
https://www.investegate.co.uk/union-jack-oil-plc--ujo-/rns/tr-1--notification-of-major-interest-in-shares/201908301510437657K/
Check this out where he doesn't even know the name of UJO. Mummy's boy dodgy second hand car dealer trader! I would like to call him a W***er
https://www.youtube.com/watch?v=-mkgkwLRiQw
Wytch farm was a great success but is now reaching the end of its life.
Production grew from 4,000 to 6,000 barrels per day (640 to 950 m3/d) in 1984[12] and eventually peaked at 110,000 barrels per day (17,000 m3/d) in 1997; by 2002 this had declined to 50,000 barrels per day (7,900 m3/d).[5] In 2002 it was estimated that the field contained reserves of 65.40 million tonnes of oil (479.6 million barrels), 4.73 million tonnes of natural gas liquids and 1.42 billion cubic metres (50×109 cu ft) of natural gas[13] that will last until 2020 and 2025 respectively.
https://en.wikipedia.org/wiki/Wytch_Farm
I have seen these ramps on LSE over 20 years come and go. Yes, 20 years! This one looks decent but FFS, they only have 16.65% share of any revenue.
600bopd - 100bopd to UJO
1200 bopd - 200bopd to UJO
1800 bopd - 300bopd to UJO
Wytch Farm had/has around 100 wells now producing around 13000bopd for the lot. UJO need to drill many many wells even if the licence area is comparable to generate the amount.
The reason I am posting is that I am disgusted with Chris Oil's BS as he said he was a "corner stone investor" only a month ago. A corner stone investor does not sell half his holding before the EWT result while ramping the share in his 3rd rate interviews how the SP could go to 3,4 or 5p!!!!
"What's bad about chris oil making money"? The numpty didn't even know the correct name of the company he was invested in - "Union Oil Jack"? He does not have a clue about the oil business. He is a rich Mummy's boy trader who will one day get what he deserves.
28.06.2019 Placing RNS for £2.25 million
The proceeds will be used principally for the planned Q3 2019 extended well test following the successful West Newton A-2 appraisal well and to provide additional working capital.
20.03.2019 Placing RNS for £1.75 million
Use of Proceeds
The use of proceeds under the Fundraising is for:
· the PEDL183 licence containing the West Newton gas discovery, and following the drilling and completion of the West Newton-2 appraisal well that is currently funded, the expected cost of any long-term gas production test, plus progress further technical and initial conceptual commercial studies on a Field Development Plan;
· the PEDL183 licence, to implement a wider technical evaluation of the other prospects on that licence including additional geological and geophysical studies;
· the proposed development cost to bring Wressle into production, subject to receiving all necessary planning approvals;
· selective expenditure on Union Jack's wider licence interests to add value; and
· for general working capital purposes.
https://www.investegate.co.uk/union-jack-oil-plc--ujo-/rns/fundraising--circular---notice-of-general-meeting/201903200700063704T/
It's only funded for the EWT and some seismic and for Wressle. Any more drills will need funding, although considering their 16.66% share, it could be worse. It looks terribly overvalued considering good news is already factored in.
You can judge for yourself, Chris calls himself a "Corner Stone Investor" twice on this video from just 1 month ago. So what has now changed his mind not to hold for "3,4 or 5"p?
https://www.youtube.com/watch?v=Q6omsDyFNlk