Industry

UKOG issues 1/3 billion new shares

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UK Oil & Gas, the company behind the Horse Hill oil site in Surrey, has issued a total of 348 million shares in the past week.

The company announced today it had allotted 331,125,828 shares in the latest stage of its deal to acquire the entire share capital of Magellan Petroleum in the Horse Hill licence.

The shares, valued at £3 million, will be issued to Magellan’s parent company, the Houston-based Tellurian Investments LLC.

On 30 December 2019, UKOG said it had converted £150,000 of a loan into 17,835,910 shares.

The two announcements increased the total number of UKOG shares by nearly 5%. There are now more than 7.3 billion shares in the company, almost enough to give one to every person on the planet.

Under the deal with Magellan, a final £1m payment in UKOG shares is due on or before 31 March 2020. The remaining loan, with Riverfort Global Opportunities and YA II PN Ltd, now stands at £3.6m.

The UKOG share price was up 3% on yesterday’s close, at 0.85p.

30 replies »

  1. This share is worthless and always will be , the daily up and down gamblers will gain a bit but all those faithful long term investors have been mugged off while Sanderson takes his half million a year but stays well away from his share options.

  2. Penny share dilution is the only way these UK oilies can keep their cashflow’s head above water. Shame most PI’s neither understand or care for balance sheets, poor debt leaverage and examples of how many others have lost money in the same industry. They just suck up all the marketing bull and throw their money at them.

  3. What a lot of rubbish this bias article is spouting yet again and can not be trusted for balanced, informed professional journalism.

    It seeks to grab notoriety with sensational headlines which are hollow.

    I’m sure that Paul the Drill or drop moderator will be along shortly to try & justify the impartiality of this rag article but the reality is that the so called 1/3 of a billion shares issued only equates 5% of the company market cap for a 8.75% share of the HH licences & overall control there of.

    I have to concede that it is a little disappointing that the current UKOG share price is where it is at present time, but I look forward to many years of growth for UKOG from the HH licences & beyond from it’s current proactive investment stance in buying out & supporting it’s partners with there attitudes or financial difficulties.

    • I don’t see how you can call this biased being as it is quoting the company official RNS , I do wonder why all the partners are bailing out if Horse Hill is such a great asset? What are the production figures for the Kimmeridge so far ?

  4. You mean “being bought out”, Jono!! Or, you could simply state that the agreement made, is being fulfilled. Has been in the pipeline (oops) for many months.

    Slightly different perspective when you use the correct English. You should become a journalist. They make several stories out of the same reality by changing a word here and there.

  5. One share for everyone on the planet? Wow! Can all share in UKOG’S wealth? I think I’ll pass on that, thanks! A bunch of crooks harvesting the cash of gullible losers.

    • Doctor Dave

      You as we all are entitled to our opinion it does not mean that you or I will be right any or all the time.

      Life has its ups & downs & I accept responsibility for my decisions even when they seem out of favour & I wait for the better times that I am sure that will follow.

      Its a shame you will miss out!

      • Unfortunately your opinion is formed on a premiss of increasing your own personal wealth and is behind what’s wrecking the planet.

        • Dr Dave

          You are certainly not a Doctor of science are you?

          According to NASA the largest cause of global warming on this planet comes from a natural source which is the sun which has caused the polar caps to start melting.

          The second is the number of people living on this planet inhaling & exhaling.

          I believe the use of home produced oil in the UK would help reduce the emissions greatly as the production & transportation to this country of oil needed to run the country causes a great deal of pollution as well as bringing economic benefits to the UK not just myself.

          You may not realize it but wind turbines & batteries are far more of a pollutant than oil production & oil is used in pretty much everything that we use one way or the other & so far there are no suitable alternatives.

          I look forward to your suggestive reply which so far in my opinion is generally I’ll informed & lacks suitable alternatives for living in the modern world & not going back to the dark ages.

          Dream on!

      • Miss out?

        Never mind the Portland problems the primary target at HH is the Kimmeridge Clay Layer. If you’d been watching closely you’d have noticed that depletion has already started, followed by the drilling of a second vertical exploratory well into the KCL (passed off as a pilot hole and now cemented in).

        The better times aren’t around the corner for your investment MH, you could have learnt this from reading drill or drop posts like this one from the former Principle Scientific Officer of the British Geological Survey, an expert in seismic interpretation; https://www.drillordrop.com/2017/08/29/guest-post-by-david-smythe-the-geology-and-oil-potential-of-horse-hill/
        Quote “ The Gatwick Gusher’s results are anomalous because UKOG drilled a fault zone. It is irresponsible and misleading to apply those local flow results outside that and other similar fault zones, i.e in the 95% or more of the KCF which is not affected by a fault zone. There will be no KCF bonanza in the Weald ”

        • Interesting you fail to mention the Profs other comments about HH, couched in numerous “mights”, which have been shown to be incorrect speculation! I could say, I wonder why, but neither of us do.

          I think you will find both the Portland and the Kimmeridge have been identified as commercial at HH. How commercial has yet to be observed-but that is absolutely standard.

          Mind you-an improvement upon Dr. Dave’s speculation! Maybe those in favour of HH being a success are not after personal gain, but are at least equally interested in more tax to support the NHS?? Shocking that a Doctor could ignore such motivation!

          (I am not an investor in UKOG but I would still like HH to be a success.)

          • Martin why so wooly? You don’t even say which of the Profs comments are you referring to as having been shown to be incorrect speculation. You will need to be a lot more specific than that and then show us your evidence that it is incorrect.

            • Why??

              Anyone who has followed the comments regarding HH on DoD know what is being referred to. You seem to want to address those without that knowledge, for your own agenda eg. has it NOT already been identified BOTH the Portland and Kimmeridge are commercial, based upon the data that UKOG have acquired???
              I would prefer my comments to be addressed to those who have a genuine interest in the reality.

              So, my interest is HOW commercial HH might be, which will take some time to establish, but you can join the speculation ahead of that based upon the square route of more speculation. By then, UKOG may have enough data, and actual experience, to establish whether HH may be replicated elsewhere in the Weald, which will take some more time but you can speculate, with the Prof. and others, about that for many happy years. However, as time passes the tortoise of reality does tend to overtake the hare of speculation. Seems you are in the same category as many of the investors into UKOG who speculate around the hare. I have my eye upon the tortoise.

              • Dream on Martin. Ignore the experts, ignore the climate and ecological emergency, ignore Mark Carney on stranded fossil fuel assets.

                Keep your eye upon the tortoise.

                • Yes, I will ignore Mark Carney. When he talks about his current job, I may take some notice. When he starts justifying his next job I shall await until he actually starts doing it. You seem to feel sticking someone’s name tag to a comment makes it gospel. You will be quoting Ed Balls views on ballroom dancing next.

                  So, what “experts” are saying oil from HH to Fawley refinery will have a negative climate or ecological impact, Dorkinian? If you can find some who will claim that as against the imported oil into Fawley, yes, I will ignore them simply because they haven’t a clue. I think you have associated yourself with a thread there, Dorkinian, which is obviously a nonsense, and a dangerous nonsense. Totally contrary to what the UN has recommended. I am not really sure who you think would not see through that.

                  “Stranded fossil fuel assets”!! Take a look at todays N.Sea business news Dorkinian. You have a penchant for going into blind alleys!

  6. Could you please explain how a wind turbine is a pollutant and how do you account for the slight anomaly that NEARLY THE WHOLE of Australia is currently on fire

    • Hi Sarah May

      In answer to your question.

      While I may currently be in a minority of people with your beliefs in the green energy revaluation.

      I thank you for your interest, there many thing that are not understood about the green energy industry & what it will entail to provide this to the UK or the world at large an a commercial basis.

      It does not mean that I & many others do not believe in the positive future of our planet.

      What I object to is the lies & misinformation circulated in its name by people looking to make money under false pretences ( please read & research my post above) & the link provided below.

      https://www.telegraph.co.uk/news/2019/09/13/worlds-powerful-greenhouse-gas-rise-due-green-energy-boom/

      I hope it will bring some constructive comments & informed debate before we do our planet more harm than good because we do not understand the short term actions being taken which are possibly more damaging than than what they are aimed to replace to improve the situation.

      Act in haste & relent at leisure.

      Fossil fuels home grown in my opinion will hold many benefits for the UK while the best alternatives are sought for the future of the planet & man/womankind for the future with the aim of major change between now & 2050.

      We only have to look at the incompatibility of smart meters between different energy suppliers to see the confusion & misinformation in the energy industry which is not united for the common good & at some point will need detailed legislation to bring a common purpose & usage without advantage being taken.

      • SARA MAY

        Let me fill in the gaps that MH failed to put forward.

        Although MH may be in principle , part correct …. The real elephant in the room has conveniently not been noticed .

        Renewable energy is NOT I repeat is NOT the driving force behind the surge in the very potent SF6 greenhouse gas.

        The WHOLE of the electricity network industry is responsible.

        Within the electrical industry SF6 is used as an insulating medium for medium (MV) and high (HV) voltage electrical switchgear. A switchgear is the combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate sections of electrical grids. Low-voltage (LV) switchgear are used for controlling electrical circuits within buildings, medium voltage (MV) switchgear for controlling the electrical grids within cities and towns, and high voltage (HV) switchgear for grids that span a greater geographical area such as countries and regions.

        SO unless MH is advocating that we shut down all power stations, disconnect all UK residents from an electricity supply . The only other way forward to eliminate this major problem, is to ban the use of the SF6 component within the ENTIRE electrical industry .

        [Typo corrected at poster’s request]

          • Thank you jackthe lad for answering those points on my behalf I would like to answer MH who is polite and appears to be well motivated He asks for some constructive comments & informed debate. I have read the link he proposed and I have to conclude that you will not get an unbiased and scientifically rigorous account from the Daily Telegraph. I did about 20 minutes googling after I read it and came to the same conclusion as jackthelad. It appears that there are already alternative technologies to SF6 and its use is currently promoted by electricity companies wanting a cheap solution. Its continued use into the future is therefore not inevitable. From your explanation jackthelad it presumably would not be a problem in micro generation Is that correct ?

            • SARA MAY,

              Sorry for the slow response .

              Although used in some Medium Voltage ( MV ) swiching circuits that operate between 1000 Volts and 35 KV …… Sulfur hexafluoride ( SF6 ) is MOSTLY used in High Voltage ( HV ) swiching circuits, operating above 35 KV.

              The reason SF6 is used is simple, it is approxi­mately 100 times more effective than air in quenching spurious arcing in High Voltage switching . SF6 also has a high thermal heat capacity that can absorb the energy of the arc when the switch is operated, without much of a temperature rise.

              Think about it this way ….. When you flick the switch on your kettle , you may see an arc ( spark ) at the switch ….. You can probably imagine what size of arc would be generated at a Power Station grid switch …….. SF6 gas as stated above, has excellent arc quenching properties .

              It would NOT be used in the switchgear of your home based, micro generation .

              SF6 would though, of been used in the production of your Solar Panels .

              • Thanks for answering. Do you happen to know the new generation of Solar panels the Perovskite ones whose manufacture is simpler and less heat hungry (according to Wikipedia) would use SF6 in their manufacture?

        • Ahh, yes, lets ban something else!

          So, when things get banned that are currently used because they are cost effective, there is this group of individuals who will fund it?

          More like there is a group of individuals who want someone else to fund it. Same group of antis that still trot around in their diesels.

          I would suggest the resilience of the UK electrical supply needs some attention first, as indicated by the recent fines, and then after that the expansion of UK electrical supply is next on the list. Smart meter costs, plus those two, and there may not be a lot of appetite left for further cost hikes.

          • Some thought on banning…

            Some mushrooms will kill you,
            while some will show you gods
            and some will feed the hunger in our bellies. Identify.
            Others will kill us if we eat them raw,
            and kill us again if we cook them once,
            but if we boil them up in spring water, and pour the water away,
            and then boil them once more, and pour the water away,
            only then can we eat them safely. Observe.

            Observe everything.

            And the mushroom hunters walk the ways they walk
            and watch the world, and see what they observe.
            And some of them would thrive and lick their lips,
            While others clutched their stomachs and expired.
            So laws are made and handed down on what is safe. Formulate.

            The tools we make to build our lives:
            our clothes, our food, our path home…
            all these things we base on observation,
            on experiment, on measurement, on truth.

            And science, you remember, is the study
            of the nature and behaviour of the universe,
            based on observation, experiment, and measurement,
            and the formulation of laws to describe these facts.

            with thanks to Neil Gaiman selected from his poem The Mushroom Hunters

          • MARTIN,

            When found to be dangerous to humans and the enviournment , we ” banned ” CFCs and Asbestos….. Suitable alternatives are now being used , without any crippling costs to the consumer or the manufacturer…

            Last time I checked, hairspray, fridge freezers and pipe lagging were still VERY CHEAP items to buy .

        • You need a lot less SF6 if you have a small number of large power stations e.g. 600MW CCGT or 1200MW nuclear vs small (relatively) wind farms spread all over the country and out to sea. If we stick with the very large offshore wind farms and not all the small renewables spread out everywhere the SF6 losses would be lowered. And there is an alternative but much more expensive apparently.

  7. Interesting that the parent company is a USA company. Shareholders are likely to be Americans with no interest in the UK at all besides getting their promised financial return. All fracking in the UK must be banned forever. We can get the fuel we need until we complete our transition away entirely without fracking

  8. Well, Turnstyle, maybe a little more research needed???

    The reality regarding UKOG is nothing to do with what you have suggested. Bog standard oil extraction in little old UK. Not unknown. Has been thus for decades, including Europes largest on-shore oil field. No fracking for UKOG. In respect of shareholders you need to look at the Private Investors and those who fall outside of that category. Both are a movable feast, but you can check that out with a bit of delving. An anti American approach may win you some pals, but you are a bit wide of the mark in this instance. I think you will find UKOG are actually in the process of taking further control of this enterprise away from the USA company!

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