Member Info for ZYX098

UKOG are losing money.

Their shares in HH and Horndean cover the operating costs on those fields, but the cash left over does not come close to covering the overheads of the parent Company (i.e. UKOG).

The resultant cash burn (if you bothered to actually read the Annual Report – which clearly many haven’t) is over £150k per month.

That means that the funds raised by the recent placing (10th July) will be exhausted within three months, requiring another placing of several Billion shares just to keep the lights on.

UKOG don’t have approval from the shareholders for any decent sized placing, so they’ll have to call an EGM (requiring 14 days notice) to do so – which will probably be the next RNS, not counting any TR-1’s from Shore Capital selling off their holding from the placing..

Calling themselves ‘debt free’ is stretching the truth – something that UKOG have a long history of in their RNS’s.

It’s like saying I’m debt free while ignoring the fact that your outgoings exceed your income and you don’t have any cash for your next mortgage payment – in UKOG’s case the exorbitant salaries taken by the BoD.

BTW, if UKOG’s future is so promising, ask yourself why the BoD don’t own any shares (apart from the miniscule amount SS was forced to buy to save his skin), or take part of their salaries in shares?

UKOG are also ignoring the liabilities they still have – e.g. the cash they owe Alba & Doriemus, the cash required to convert HH-2 to a water injector, the cash call to get Avington back up and running, the cash owed to AME for Turkey and the P&A/site restoration liability (at least £1.1 Million) for the BB location.

So what ‘good news’ could be coming?

PPP?

The provisional agreement with PPP expired a month ago and hasn’t been renewed. In any case, the partners had refused to sign off on it.

Besides, HH-3 cannot be drilled until the concerns raised by the absurd SC ruling are addressed with SCC.

So no.

Farm out of Loxley?

That’s been marketed for over 2 years with no takers, after the disastrous CPR showed no 2P reserves, manipulation of the contour lines by UKOG to get the structure closed, a forced assumption of future gas prices by UKOG and “mis-interpretation” of the Alford E-Logs to show gas was present.

In addition, the licensee on the next block (which UKOG’s mapping shows the Loxley prospect extending into) has just relinquished the licence, so they obviously don’t think much of the prospect.

So no.

Take-over by someone with Shore Capital acting as the front?

If that were the case, why didn’t the share price react when the original TR-1 came out on the 18th July? Why did it react to a TR-1 issued over a week later, which showed Shore Capital actually reduced their holding?

In any case, why would anyone take over a Company that’s operating at a loss and has liabilities it can’t cover?

So no.

GB,

Of course he doesn't - just mindless ramping with zero substance behind it.

Well now Adrian has turned up, that's confirmation it's a P&D.....

SRBS,

There was nothing stopping UKOG from installing PV power at HH before.

In fact, they announced their intention to do just that several years ago.

But that was another announcement of what they would do that subsequently disappeared without trace...

No Crowber.

You wouldn't know as you are not one of the regular posters, but I actually run Drilling Rigs for a living and have done so for many years.

That's why my track record in predicting UKOG's performance (or lack thereof) is extremely good, compared to the Rampers....

Sharp share price rise with no change in the fundamentals - Check.

Nothing in the UKOG pipeline to justify a rise - Check.

Sudden appearance of ramping posts by ID's who don't normally post on this board - Check.

Large amount of confetti shares overhanging the market - Check

"Big news inbound" claim(s) - Check.

"Can't buy" claim(s) - Check.

"Buys showing as sells" - Check.

"MM's holding this back" - Check.

Yup - it's a P&D.

The basic facts are that UKOG don't have the cash to cover their outgoings for more than 3 months, nor do they have the cash (£1.1 Million) to cover their P&A and site restoration obligations at BB.

Even if the current share price were to hold, that's still another 3+ Billion shares to be issued in the next couple of months.

As for Hydrogen, the Govt is simply not foolish enough to issue funds to a Company that has destroyed shareholder value by over 99.9%, that has no major Company backing it and is pushing a project that Geographically is at the wrong end of the Country.

Even if they did get funding, any positive effect on UKOG's bottom line won't be felt for at least 15 years.

If you can make money trading, then good luck to you.

But this spike will vanish just as quickly as it appeared.

Of course, the usual suspects will accuse me of being a deramper - but my forecasts have been way more accurate than theirs over the years, as the share price performance has shown.....

Yes, HH makes the list at 13:10...

https://www.youtube.com/watch?v=b-K8axdldi8

Harrun,

Your claim that they are a 'debt free Company' just shows that you have done no research at all....

The -99.99% club you mean....

Wrong board.

"Salt is highly stable"????????

BS - when the internal gas pressure is dropped, the salt relaxes and the cavern gets smaller.

That's why salt caverns have a limited capacity compared to their size and ultimately need to be blown down, washed out and refilled again on a regular basis.

HITS,

I believe Labour will get two terms, as the Tories will do their usual blood-letting and take a while to get themselves together.

In reality, I feel that's why Tony Blair won an additional term.

But I don't see KS lasting more than a year, before he gets turfed out and AR becomes the leader.

After all, the Diane Abbot affair showed the Left wing of the party is still pulling all the strings.

KS: Diane Abbot will not stand as a Labour candidate.

The next day;

AR: I don't see why she can't stand as a Labour candidate.

The next day;

Diane Abbot is standing as a Labour candidate.

An alternative scenario for 2029 is Nigel Farage / Reform run on the premise; "You saw that the Tories were cr*p, you've seen that Labour are cr*p, so try us instead!"......

It's odd that when people blame the Tories for 14 yrs of chaos (ignoring the 5 years of the coalition), they always point to how economically poorly we have been doing for the last few years - conveniently forgetting that the economy has had two 'black swan' events of the pandemic and Putin invading The Ukraine in a very short space of time.

If you dare have the temerity to point out the mess that Labour left in 2010 and it's instantly put down to the banking crisis - which GB's mismanagement of the UK Economy had left us especially vulnerable to.

But, according to the ONS data:

Q3 1997 deficit was 0%

Q1 2008 deficit was - 3.6%

Q3 2010 deficit was -3.6%

In 1997, the UK debt to GDP ratio was 88.56%

In 2007, the ratio was 93.63%

So Labour had increased both the deficit and the debt to GDP ratio even before the banking crisis.

Remember, the OBR came into being because GB had been so far out on his PSBR for several years in a row - and by %'s that would make Liz Truss blush. But that was before the 24/7 news cycle and social media, so he mostly got away with it.

I've talked to several people who are going to vote Labour, purely because they "hate the Tories".

The last time that people voted for candidate B because they really hated candidate A, Trump got elected as President...

Irrespective of who got in, it was still going to be a tough few years for the UK.

But Labours policies - particularly towards energy - will make it worse and another Generation of voters will find out that while the grass may be brown on this side of the fence, it's not necessarily any greener on the other side.

Jamrock,

Are you taking into account the consolidation with your 30p figure?

Otherwise, in terms of actual share price, this has never been over 11p and that was many years ago.

As part of the review of the paperwork following the Supreme Court decision, I wonder if SCC will also look into UKOG's financial viability with respect to their current outgoings and ultimately the cost to P&A HH and restore the site?

UKOG's total production isn't enough to cover their current production costs and Overheads - hence their need to continue issuing more confetti.

You'd think the responsibility to look over their ongoing financial viability would fall under the remit of the DESNZ or NSTA, but it doesn't - it falls under the remit of the Minerals Planning Authority - in this case, SCC themselves.

Basically the DESNZ only look at a Companies financials during the initial appraisal for the award of a licence.

After that, the NTSA look at the costs and funding of a specific work program, but neither looks at the ongoing financial viability of an Operator.

It's not a gap in current legislation as such, but I'm willing to bet that SCC aren't aware of this responsibility. They certainly don't have the technical and financial expertise to evaluate what UKOG may put to them.

SR,

It's just going through the process to retrospectively correct the paperwork with respect to what UKOG have been doing already - i.e. producing slowly decreasing amounts (following the decline curve) from HH, so it won't have any effect on the share price.

If anything, the *expletive deleted* Supreme Court judgement made it harder to farm out Loxley than it already was.

Alans55

How sweet you think what you say has any credibility, compared to someone who has worked in the Oil Industry for decades.

How has your track record been over the last few months?

Oh yeah, 100% wrong....

Sharp share price rise with no RNS - Check.

Nothing in the UKOG pipeline to justify a rise - Check.

Sudden appearance of rampers who don't normally post on here - Check.

"Big news inbound" claim(s) - Check.

"Can't buy" claim(s) - Check.

Yup - P&D incoming.

BV,

What Govts should be doing is charging a defined levy on the Offshore Wind Farm Operators to ensure that the decommissioning costs are fully covered, so the taxpayer doesn't get the bill.

This is similar to the mechanism in place for the UKCS, where since the start of production, an additional tax is paid from production to ensure that the taxpayer pays nothing (despite the claims of some) for the decommissioning program at the end of the field life.

In effect, it's a multi-billion, decades long loan to HM Govt.

The money left in the fund at the end of the Decom program isn't returned to the Operator, it's kept by the Govt..

The wind farm Operators are supposed to be putting funds aside from their operating profits to ensure that they have the funds available, but many of them aren't.

Many are complaining that the gas price has come down to pre-war levels, so why haven't their bills come down too what they were before?

It's due to two factors.

Firstly, the oil industry had a big inflation spike, just the same as everyone else.

Secondly, the mantra "cheap renewable energy" is wrong. The FSLCoE of offshore static wind is around £200 MWhr.

An eyewatering figure which is why it's a fantasy to claim our energy bills will come down.

More than a little ironic that Kier Starmer was complaining about our reliance on imported energy on TV this morning - but his policies will make us even more reliant on imported energy.

And still, Norway continues to explore for the gas that they know that we - the UK - will need.

Rubbish.

Gas is much cheaper than electricity

From my last bill;

Gas - 5.69p/kWh

Electricity - 15.73p/kWh

If I've got my calculations right (and it's easy to get wrong by an order of magnitude with so many zeros involved..), if someone had invested £1,000 at the peak share price, it would now be worth about £0.00014.

The LOS isn't worth the paper it's written on.

No Govt in their right mind would give a grant to a Company with such a spectacular track record of failure.

That UKOG feel the need to issue an RNS about it, compared with their deafening silence in the past on things far more relevant to UKOG shareholders, just shows how desperate the BoD have become in trying to manufacture a P&D to clear the death spiral financing and prolong their outrageous salaries.

The BoD have zero shame or moral integrity and the non-Exec Directors (who should be holding them to account) are just as complicit.