Member Info for ZYX098

Cynderlad,

31 Deg API oil is actually good quality, as long as there is no H2S or CO2 in it.

No, I didn't miss the content of your message - but you clearly misunderstood mine.

Too many eco-warriors believe that if we all just change over to driving electric powered vehicles, then global warming will be solved and all will be well.

It won't.

It's all well and good being 'happy clappy' about renewables, but the true costs have yet to hit home.

Equally, the magnitude of the amount of demand on - for example - offshore wind supply chain infrastructure has not dawned on the general public, although it has on the wind industry and in webinars they are already admitting that they cannot meet their own installation forecasts without a substantial investment (i.e. more Govt money from the taxpayer) at all levels of the supply chain.

And if they continue to hound Companies like the Shell's, BP's etc, all they will do is drive oil exploration & development into the hands of the Chinese and Russians - who really don't care about the environment or health and safety. Just ask any Country in Africa that used them....

Pimnappa,

A glance at any respectable forecast of oil consumption shows that the decline from 'peak oil' will be long and slow, not fall precipitously off a cliff which some would have you believe.

HM Govt's own forecast is that the UK's oil consumption will fall by only c. 10% by 2040.

Even BP - who have jumped on the green bandwagon more than any other major - have stated that if climate change goals set out in the Paris agreement are met, 50% of the oil we will need in 2040 has yet to be developed. On the current progress (i.e. falling behind), that figure jumps to 70%.

Too many people are looking at the decline of oil through rose tinted glasses from an 'Urban First World' point of view and ignoring the 2+ billion people currently living in energy poverty who aspire to a 'western' standard of living.

They are also ignoring the direct correlation between the rise in the cost of energy and the rise in the % of renewable energy in Europe, Australia and parts of the USA.

And it will get worse. The LCOE of Floating Offshore Wind is predicted to be around £250 MW/hr. As a comparison, the LCOE of static Offshore Wind is currently £110 MW/hr.

And those figures do not include the compensation payments (which ultimately end up on our energy bills) made to the gas fired power plants who are paid to be on Standby for when the Sun is not shining or the wind speed drops (or gets too high).

That the payment was made in shares was entirely at UKOG's discretion, not PW's.

So it's not correct to state they were 'happy' to have UKOG shares.

Basur-3 is classified as an Exploration Well according to AME.

Loxley is an exploration well as well - even UKOG's own structure map shows that no previous well has actually been on structure.

While the PI will almost certainly rule in UKOG's favour with respect to drilling Loxley, they don't have the cash to do anything with it, or the notional two Well programme at HH.

But, y'know, facts....

Wizard 125,

True enough, but it does show the magnitude of the problem in trying to get enough votes to remove the Chairman, however badly he is performing.

IBug - depends on your platform. I use HL and that option is not easy to find.

Wizard 125,

The problem - as amply demonstrated in the AGM - is that the great majority of PI's shares are held in nominee accounts by the likes of HL.

Unless you specifically state otherwise when you bought the shares, the holder of the nominee account will automatically cast your vote(s) for you and almost inevitably it will be in favour of whatever motions the Board recommends.

Ibug,

Thanks - will listen when I get back in!

Ocelot,

You can't listen to a recording of the AGM, as UKOG have failed to put it up on their website.

Equally they have failed to publish the full results of the AGM, other than the RNS stating that all resolutions put to the AGM had passed.

Lost count of how many times I've seen that "one share bought is an indication of an RNS being issued tomorrow" posted here in the past - and inevitably it's been wrong.

From todays Alba RNS:
"UKOG also reported that further development of the Kimmeridge oil pool remains a significant objective"

From the Lidsey application:
"The Kimmeridge at HH and Broadford Bridge has proved to be sub commercial".

So which is it?

Of course, the silence from the UKOG BoD will be deafening.

Not sad.

Just the stone cold fact that it would take a 20 fold increase in UKOG's current market cap to breach the bottom of the FTSE 250.

And that is not going to happen with AME / UKOG's licenses in Turkey.

An idea of how much support that could be obtained is to look at what the % vote was for / against the re-election of the Finance and non-Exec Directors at the last AGM.

Does anyone know what those figures were?

I've signed.

Ibug,

A couple of things to bear in mind; they are on the 11th Well on East Sadak, so they have had plenty of opportunity to improve performance by fine tuning their drilling program.

Also, Exploration Wells tend to gather more data (e.g. E-Log runs prior to running casing, coring) than a Development Well, so take a bit longer in that respect too.

On the other hand, for some reason I had the figure of 2,000m in mind as a potential TD for Basur, not 1,200m.

Looking at their website, UKOG haven't given any details that I can find (not surprise there...), although in one slide they do reference the original Basur well as going to c. 1,250m.

If they do call TD at around 1,250m, then yes, they should reach that in around four weeks from Spud.

Ibug,

The size and layout of the site and in particular the concrete pad point towards AME 101 being the Rig that they intend to use.

I don't know if that's readily available, but I understand there is a licence commitment to spud before the end of June? If so, they would have factored that into their Rig schedule.

Wells take on average c. 45 days in that area, so with a spud date of 1st week in June (the earliest I think they would be ready if using the AME 101), that would put TD in mid-July.

The one who made the most money out of GKP was Todd Kozels wife in the divorce.....

Penguins,

I really hope it is just an optical illusion that the Conductor appears so far out of alignment, as if it is that bad, the Drilling chaps are going to have a Cow when they turn up.

What it looks like they are doing with the cuttings pit is they have divided it into two prior to laying the impermeable membrane.

The nearer part looks like where the cuttings from the solids control equipment will be dumped. There is normally quite a lot of the drilling fluid still attached to the cuttings, which gradually separate over a period of time and forms a layer of fluids on the surface.

When the level builds up enough, the liquid should flow through the notch you can see on the right side of the pit divider. This makes it easier to either recover for further use treatment and reuse, or to tanker away for disposal.

Despite the good progress apparent in the photos, there is still a lot of work to be done on site. e.g lining the cuttings pit, digging , lining and filling the water pit (where is the water coming from? On site water well or brought in by tanker?), allowing the concrete pads for the rig and ancillary equipment to cure (usually takes c. 10 days to cure enough to take the weight) and generally prepping the rest of the site (sewage, pot water, electrical, hydraulic, comms & data lines, sewage treatment system/soak aways etc).

So I'd say their original estimate of being ready by the end of May is correct.

If the Rig is immediately available (anyone know this for sure?), they can start to pre-move some of the drilling materials (casing, mud & cement chemicals, tubulars, fuel etc), rig equipment and camp units into place beforehand, but the Rig itself, Gensets, Fuel tank, Pot water tanks, water tanks, mud system, mud pumps and cement unit basically will have to come in once the main construction is finished.

Shouldn't take more than 7 days to rig up and acceptance test the Rig and Service Co equipment (primarily the Mud Logging Unit & Cement Unit and prepare the spud mud).

One point of interest is what sort of Mobilisation deal the Rig is on, as it's an AME Rig but UKOG are paying 100% of the bill.
If I was AME (Rig) Company, instead of a lump sum Mob fee, I'd have it on day-rate and not be in a rush, as it won't cost AME (Oil) Company anything but drain a little more out of UKOG's coffers.

So presuming the Rig is immediately available, spud should be somewhere in the 5th June - 10th June region and the placing to pay for it the week before at the latest.

Wells in that area average c. 45 days to drill to TD and log, so I'd be looking for an RNS with the results w/c 19th July.

Hi Exploration,

That's correct in the US, but it's more commonly known as the cuttings pit to distinguish it from the reserve pit in the mud tanks (containing prepared drilling fluid that is ready, but kept separate from the circulating system until used.)

The cuttings /reserve pit is normally split in two (although AME do not appear to be doing this in Turkey), with a small notch cut in the top of the barrier separating them. This allows the liquid to flow across while keeping the cuttings in the main pit. This makes it easier to recover the liquid portion for cleaning and reuse, or separate disposal from the cuttings.

Bentonite is indeed used as you say, but it is becoming more rare that the authorities allow this and don't mandate the use of a membrane. They always do if OBM is being used and the Operator may do this anyway, if a Bentonite mud isn't being used in the top hole sections.

In many areas, further treatment is now being mandated, essentially to dry the cuttings even further to minimise their volume. Sometimes this may also involve incineration and crushing to remove the last of the mud.

The norm is indeed to let the main pit dry out and then be buried under the top soil that was removed and stored during site construction.

Are you G&G?

Tony1357,

The method of using a pit dug in the ground for the mud system hasn't been used anywhere for many decades.

The AME has the following mud system;
Mud Pits:Total Tank Capacity: 1100bbl, Agitators: 4x 7,5kW + 5x 11kW, Hopper Centrifuge: 3x 75kW 6”x8”x14” (2 on hopper pit, 1 on suction pit), 40bbl Slug Tank, 1200bbl water containing pits

Link to the AME-101 Rig Specs the above is taken from.
http://aladdinmiddleeast.com/AME-101-DRILLING-RIG/EN/50/51/A