Social media is alive with updates this weekend! UKOG & ANGS Oil & Gas

We have been following the UKOG story closely, they have drilled BB-1z side track well near Billingshurst area and the Broadford Bridge site. Reading Twitter account updates and looking at images being posted, the latest while writing this was “Perforation gun (1.1D class explosive) leaving Broadford Bridge. Flow testing underway.”

@ContrarianUK

Bulletin boards, Anti-fracking web sites etc are alive with information. The rig still seems to be up on the site but a operational heavy lift crane boom can been seen today being used on site? One would think this has been brought in to help start the demobilization of the land rig.

To answer a question on Twitter yesterday,  BDF Rig 28 rig. I have used a stock image of the rig on the right hand side to highlight the question being asked.

You are looking at a platform for the Derrickman to use while loading pipe or release depending on the operation. Known as the Monkey board or Monkey island, these are very old school and most operators especial offshore have all this automated now.

Back in the day, one the Derrickman guys got killed while l was offshore. He had unlatched his harness for brew time and the tool pusher asked for one more pipe, poor lad forgot he was not secure and leaned out and lost his footing, crazy old game.

In the image’s we can clearly see sign 1.1D Class Explosives on the blue half height 20ft container, this is used for the open down hole work( Perforating operations) by the drill crew. We dont know what process or procedure UKOG have used, to give you some idea of the Perforating Gun Specification an oil company can use here is a list of options in the link below.

www.ime.org/PerfGunClassification.pdf

 

So the question people are asking, is this the 1.1D class explosive kit being transported from site yesterday. We follow this respected poster who posted an update today on Facebook. Here is Richard take from his site visit yesterday www.facebook.com/Contrarian-Investor

We have to take Angus Energy in to consideration here, the last update clearly stated they are waiting on the BDF Rig 28 rig.

Angus Energy PLC (AIM:ANGS) OGA approval received regarding Lidsey-X2 well

Share holders will be happy to hear that news when it is released in an RNS. Lidsey-X2 well looks to be the next destination for the drill crew. The last RNS update on August 9, 2017 Angus Energy PLC (ANGS) RNS stated:

“The Company notes its timeline for Lidsey-X2 to re-commence production from Lidsey may now be delayed by a few weeks due to the extension of BDF Rig 28‘s current work obligations for an unrelated third party. These modified operations have postponed the equipment mobilisation date to the Lidsey oil field.”

BDF Rig 28 – Ideco BIR5625 Equipment Images and spec. The image below shows a crane being used during mobilisation, de-mobilisation the rig.

www.bdf.co.uk

We are of course second guessing here because of the site lock down, lack of information being released until UKOG update the markets officially. But let’s play devils advocate here and l will put some thoughts out for open discussion. I have no connection with the company and am writing these notes as someone who is not inside.

The one pointer that is stand out for me “BB-1z, consisting of a fresh, undamaged, 1,480 ft thick, intensely fractured Kimmeridge oil-bearing reservoir in optimal condition for flow testing.”

  • UKOG have completed down hole work( Perforating operations).
  • Flow tests would follow with rig in statuette. UKOG would have a shut down period (36 – 48hr) to conduct flow test using a restricted choke. The reason they must do this is not to damage the open hole as the well will not be fully cased.
  •   Once completed they would demobilize BDF Rig 28 – Ideco BIR5625 (pictures on site show a heavy lift crane operational).
  • Announcement/material update to give flow rate rates, figures.
  • Rig to leave site – Lidsey-X2 waiting on its arrival.
  • Nodding donkey used at BB-1z for up to a 14 weeks period to be able to calculate correct flow rates, figures, to attain the commercially viability of Broadford Bridge site production.

UKOG still has a lot of news flow while they conduct the flow rate test at Billingshurst, West Sussex.

Planning permission: from Surrey County Council (“SCC”), Horse Hill planning application will be determined at the scheduled SCC Planning Committee meeting of either August or September 2017. The planning application seeks consent to long-term production test HH-1 and to drill two further wells. The Company’s plans remain unchanged in that HH-1 testing will directly follow the BB-1 flow test operation, with an HH-1 start expected in Q4 2017.

Horse Hill was successful with  the final Horse Hill 1 (‘HH-1’) Portland test flowed at a stable dry oil rate of 323 barrels of oil per day (‘bopd’), double the previously reported rate March 21, 2016.

The well’s natural aggregate flow rate from the Kimmeridge limestones of 1360 bopd looks to be one of the highest natural flow rates recorded in a UK onshore wildcat well since the Wytch Farm discovery in the 1970s.

Restricted flow of 100% dry oil, through a 1-inch choke, using a rod pump, commenced at around 1350 hrs GMT yesterday at an initial instantaneous rate in excess of 700 barrels per day (“bopd”). At circa 1430 hrs the well started flowing freely to surface, without pumping. The free flow rate increased to over 900 bopd at 1500 hrs. The flow of dry oil then stabilised from 1500 hrs to approximately 1800 hrs, at rates averaging in excess of 900 bopd.

This is what awaits UKOG on their return visit to Horse Hill, with Broadford Bridge site still to produce the true flow rate figures. The Weald Basin is the place to be right now, operationally cost effective with easy access for equipment, personnel, low production figures for 40-degree API, light, sweet oil.

Take in to consideration UKOG Market Capitalisation £255.79m & a share price of 7.35p, some will think this is a high MC but the question people have to ask reading the possibility of UKOG going in to production shortly, cash generating, it is one for the watch list for sure.

Wytch Farm discovery in the 1970s produced originally around 660 bopd per day, just saying! 

 

I honestly see no losers here, l watch share holders having debates on line but if you stand back and look what the Weald Basin has to offer, all the British companies involved look to be in the right place at the right time.

Related image

Share Talk has covered both UKOG & ANGS in depth and l personally see no losers here once the black stuff is flowing. On that note if you take in to consideration shares in issue, Market Capitalisation, Angus with £69.43m and only 240.46m share in issue plus ANGS is in production.

https://share-talk.com/share-talk-highlight-oil-gas-aim-listed-companies-part-2-angus-energy-plc-aimangs/

 What lies ahead for Mr Vonk and the Angus team in the coming months. I see a two prong approach with company sitting waiting on BDF Rig 28 to be released to Lindsey (Lidsey Oil Field is located near Bognor Regis in the south of the United Kingdom). Company expects an operating window of approximately six weeks from the rescheduled mobilisation date, once confirmed, to actual production from Lidsey-X2 with a low OPEX of $14.4/bbl
Production is the key word in that sentence, So realistically the rig looks to be moving location within the next week. Then you have to look at only six weeks time frame. So the news flow from Angus, expectation from the markets, share holders will drive sentiment.
  • NEX Exchange Bond Issue that is expected on or around 31 August 2017. Application for admission of up to £3,500,000 sterling denominated secured bonds of denomination £1, with a maturity date of 30 June 2022, (the “NEX Bonds”). The company will be fully funded and will be able to push on to bringing their assets in to production.

Brockham: Surrey County Council has now confirmed that the planning application to regularise the upgraded surface infrastructure at the Brockham Oil Field (PL235) will not require an Environmental Impact Assessment.

The Brockham site has undergone extensive modification and upgrade works (including new site cabins, fencing, concrete bunding works for high rate production equipment and associated surface structures) in preparation for the new oil production planned from the recent Brockham operations.

Previous guidance for oil production to commence from the Kimmeridge at Brockham in the summer 2017 remains unchanged.

A 200-meter band of the reservoir in Brockham-X4Z is naturally fractured and will be placed into production following final consent from the OGA.

Brockham-X4Z side track confirmed the reservoir consists of numerous interbedded layers of limestone and shale with abundant natural fracturing.  The gross thickness of the Kimmeridge reservoir in Brockham-X4Z is calculated to be 385 meters. Further analysis strengthens our hypothesis that the Kimmeridge reservoir in that flank of the Weald Basin (covering Brockham, Horse Hill etc.) is a single reservoir which may even extend as far south as Angus Energy’s field at Lidsey

Image result for Doriemus PLC

As readers can see, all eyes will be once again on these two companies over the summer months with the autumn looking to be very interesting on various fronts.

@ABMckinley

Disclaimer: I receive no personal payment’s nor does Share Talk receive any monies, stock for writing these blogs. These are my own personal view’s expressed in these blog’s and should be treated as such.

Useful links:

Oil and Gas Authority Open Data

www.gov.uk/weald-basin-jurassic-shale-reports

www.gov.uk/government/JurassicWealdShale

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