Member Info for ZYX098

Rolf1001,

Clearly you are a poster who has been on here before, but got your previous ID tossed for abusing other posters - which is all I've seen you do under your current ID.

Your claim to have built up over 1,000,000 RKH shares simply isn't credible.

You add absolutely nothing worthwhile to this discussion board.

I rarely filter people, but congratulations on making it onto my list.

BTW, according to the Bank of England's inflation calculator, £10k in 2010 would need to be worth £15.48k now to break even - not the £17k you claim.

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

"Or it would have been sold off to keep SS in his luxurious salary a bit longer."

Apologies - new keyboard.......

BTW, the value of HH is clearly negative, otherwise they would have been hammering down the door of SCC to get production started again.

Eit would have been sold off to keep SS in his luxurious salary a bit longer.

"No going concern or default notice all good"

How do you know that Jacknose?

They still haven't published the last years accounts yet.

Or are you taking a leaf from TH 2's book, and just making stuff up?

Rob Saunders,

It will probably (as a condition of the sale) get them out of their decommissioning liabilities for Horndean and Avington, but they are still on the hook for everything else.

BB will be about £1.3 Million and HH about £2.5 Million - cash that they don't have.

TH2 conveniently ignoring the facts.

Again.

The CPR UKOG issued for Loxley was devastating, as it showed ZERO 2 C reserves. That was in addition to the "inventive" mapping of the structure, wrong interpretation of the Alfold-1 E-Logs and unrealistic assumptions on the projected production rates and gas price.

UKOG have been trying to farm out Loxley for over three years (even employing a 'specialist' Company - Envoi Limited) with zero interest, so "just selling it" or "partnering with one of the big boys" isn't a realistic option.

As already pointed out, they haven't met their obligations to drill a Well to retain the license and furthermore don't have the funds (c. £7 Million) to drill the Well either.

While the NPV of BB is clearly negative, it's now also clear that the book value of HH is also negative, otherwise they would have included that in the sale too.

This sale (effectively a fire sale, given the booked value, increase in production rates since the last book value and current annual cash flow) is obviously a last throw of the dice to just 'keep the lights' on for a bit longer, so that SS can milk the Company of it's last drop.

Most of the rest of the article;

He cited the cost of renewable power, at least in Europe, as a key reason why the economics of green hydrogen simply do not stack up. Liebreich even took issue with the developer of a major green hydrogen and ammonia project in South Africa, who said he could achieve a cost of $2/kg for green hydrogen on the back of cheap and highly efficient solar power. “Count me out. You are not going to do hydrogen for $2/kg, Liebreich said. “I was in the [Mideast] Gulf earlier this year, and they are struggling, in much of the Gulf, to get to $5/kg,” he told the conference.

Liebreich found an ally in the room in the form of Octopus Energy, one of the UK’s fastest-growing green power suppliers and, until recently, a hydrogen enthusiast. William Rowe, who launched the Octopus hydrogen business in 2021, said the firm’s original idea had been to produce green hydrogen from cheap curtailed renewable power, allowing it to produce at around £5/kg ($6.8/kg) delivered to the end-user. Having got a project up and running, Octopus realised the economics did not work as they had expected. “The reality was, it is just not true,” said Rowe. Flexibility and storage now look to be a better way to manage curtailed power, while price signals in the market will decrease the overall amount of curtailing on the system, he said.

The killer blow for Octopus’ foray into hydrogen was cost inflation in the supply chain, Rowe said. “What we found was that we were actually getting inflation on the supply chain for hydrogen rather than deflation. There was no real opportunity to bring the cost down in many of the elements of what we were trying to buy.”

And there is no Govt funding available, so........

Rumblefish,

The Ukrainians essentially closed off the Black Sea - a much larger proposition than the Straits of Hormuz - to the Russians without a Navy and not much air support.

The Iranian missiles (even the old Silkworms) are more than accurate enough to hit a tanker over the short distance required.

Don't forget that the Iranians built a pipeline and export terminal at Jask, just so they could still export oil if the Strait was closed.

https://oilprice.com/Latest-Energy-News/World-News/Iran-Inaugurates-Oil-Export-Terminal-To-Bypass-Strait-Of-Hormuz.html

Hi Ovets,

Weird - it also stripped out all my capitalisation!

Anyway, the word was hh--oo--mm--oo--gg--ee--nn--ii--oo--uu--ss!

Hi Paul,

I'm not so confident that the FIG will just extend the SFB licenses.

Like you say, any SFB work is a long, long way behind the NFB and I would have thought that the FIG would be keen to get a few more potential developments outside the SL area into the pipeline.

In that respect it's obvious neither RHK or BOR can do anything without getting external buy in from another outfit.

The recent BOR cash raise takes them to the end of 2026 and I don't think that that is a coincidence. My feeling is that if they haven't been able to farm out by then, then they'll have to give up the license.

If Sam says RKH have the SFB licenses booked at zero value, he may have reached the same conclusion and that RKH don't have a realistic chance of getting anything going in the SFB - especially while they are also focused on SL.

I don't think Navitas are interested - they are fully committed to getting SL onstream and (hopefully) starting to explore / appraise the other structures in the NFB area. In that respect, I would expect them to go after JHI first, before anything else.

Given where we are, and the near certainty that SL will go ahead , would any OO be priced at a very small discount, but the warrants could be exercised only at a considerable premium?

From ABZ 'bar talk' (i.e. a bit better than an unsubstantiated rumour - but not much!), it seems the Navitas people are confident they'll have all their ducks in a row for IFD by the end of Q3, but will have to wait until the FIG formally sign off on the approval (October? Which would tie in with what Sam said?) before they can then announce the FID.

If that's correct, then RKH would know exactly how much they have to raise and can accurately allocate the number of shares and price before FID.

R1234,

From my own experience with an HL ISA, I was already at my annual limit, so the only way I could generate cash for the warrants was to sell another share in my ISA. Of course, then you have to estimate how much the award of warrants may (or may not) be pared back.

When Aura Energy awarded some Warrants to existing shareholders a few months ago, although my Auras holding was in my ISA, my ISA was already maxed out for the year and HL automatically put them into my F&SA.

ltt,

bear in mind i'm on the drilling side, not the production side, so it's not my area of expertise - but i've learned enough over the years that i think (!!!) i can explain it a little.

they'll have a very good idea from the testing done during the exploration and appraisal phase of what drawdown they can use and the production rate that will result.

the drawdown is the pressure drop from the formation to the well bore and that essentially dictates the production rate - a lower pressure drop will give a lower production rate.

the limiting factors are usually not drawing down such that the pressure differences causes formation damage (e.g. collapse or making clay particles mobile enough that they block the pore throats) or ensuring that they don't go below what's called the 'bubble point'. that's when any gas starts coming out of solution while it's still in the formation instead of the well and this reduces the production rate.

another limitation is not producing so rapidly that they cause either the water from the water leg to cone upwards, or the gas from any gas cap to cone downwards. ideally you want to produce at such a rate that the coning is minimised as much as possible.

as gas is much more mobile than water, this is why horizontals (or the perforations on non-horizontals) are usually much closer to the water leg than the oil leg, if the formation is relatively ****geneous.

i'm sure there's a lot of other factors that come into play (limitation on the surface facilities, for example), but like i said - not my bailiwick!

irrespective, they will start off at fairly low rates anyway, while they check out all the processes on the production facilities.

but once they are happy and the surface & downhole data correlates with what they were expecting, they should be able to ramp up the production rates to the maximum within a few days.

Morning Paul,

Thanks.

Sam is essentially repeating what Harry said in an Energy Voice article earlier this week.

The article was primarily HB basically putting out the begging bowl for someone to come in and fund more drilling on the BOR license.

I do think he's correct that FID for SL will trigger more interest in the FI in general.

Navitas doing the legwork in terms of being the first to go through the FIG approval process will make it easier for others to follow.

Plus setting up the supply base and just being there will certainly create opportunities for reducing costs (for both parties) by sharing boats & Helicopter services for example.

My big concern is that both the RKH and BOR SFB licenses run out at the end of 2026, which in practical terms leaves very little time left to get a Well spudded before the license runs out.

A poster on the BOR board indicated that BOR already had an extension for two(?) years, but that's not what HB said in the Energy Voice article.

Thank very much to all who attended the AGM and have been giving us feedback throughout the morning.

Was anything mentioned about the SFB licenses?

Is the AGM still going?

If so, can someone ask if they can use the recently published CPR for a Reserves Based Lending deal?

Made a couple of buys into my HL Accounts.

12:18hrs price - 47.6262

12:20hrs rice - 48.17

Mysteron,

Page 4 doesn't represent the reality - it's just an Artists impression of a potential development. It even shows 500m of Halite when the narrative on page 4 says up to 450m.

Page 9 shows the results of the actual Gamma Ray (GR) log - in other words, what is really down there.

If it really were a clean salt, then that line would be virtually straight down.

Instead, it's all over the place.

The closest it gets to a clean salt is the section from 2430m to 2,440m and 2,470m to 2,490m.

The GR log (and core) not only shows the presence of the Shales, Limestones and Dolomites I mentioned previously, it also shows that the salt itself is a mixture of various forms of Sodium, Calcium and Magnesium Chloride.

When trying to wash out a new cavern, these will all wash out at different rates, leaving substantial ledges. The weakest of these (usually the Shale) will collapse into the Well bore and likely trap the wash string with monotonous regularity.

The supposedly clean salt section has so many of these areas that even if they could wash out a cavern, it would look nothing like the diagram and operationally would be very problematical, as every time the cavern pressure varies, the flexing of the formation would cause more collapses.

This is why nobody has attempted washing out a cavern in this area.

Mysteron,

UKOG's presentation helpfully confirms what these of us who know something about the Oil Industry have been saying all along - the proposed project is in the wrong place.

Page 4 claims that the area contains a "massive, clean Middle Salt Unit".

Yet page 9 of the same presentation clearly shows that the salt is anything but clean.

The GR Log (and Lith Log UKOG have also helpfully provided) shows that the salt is riddled with layers of Shale, Dolomite and Limestone - none of which are conducive to being able to leach out a salt cavern.

This is likely why nobody has tried in Dorset before, instead preferring to use the salt layer in Yorkshire - which already contains several previously leached salt caverns.

As for UKOG's East Yorkshire storage project, they've never given any real details other than they have an East Yorkshire storage project.

Besides, the Govt is in discussions with Centrica to convert the Rough Gas storage field to Hydrogen storage and also switch the other salt caverns in Yorkshire over to Hydrogen from gas storage - both of which are much quicker and more cost effective than trying to build a new facility.