We take a look at UKOG & ANGS News Flow & what to expect

We take a look at Broadford Bridge drill site near Billingshurst in Sussex. Angus Energy are on standby and all eyes are looking for a flow test results RNS update from UKOG. Did RGM (Regency Mines) let the cat slip out of the bag? Does Surrey County Council’s claim that Angus Energy drilled its new Brockham oil well without planning permission still stand?

Share Talk has been in contact with Mr Sanderson and  UKOG PR team. I have meet, spoke with Steve in the past on a few occasions and he will update when he is ready. Holiday time right now in the UK and it should be normal service resumed tomorrow with the bank holiday is out of the way.

Share Talk have spoke with three other  CEO’s, one broker firm over the holiday period, so we dont just cover one company and  l hope our followers understand we are always looking forward. Our first part of the story is Richard’s take on the past weeks event’s.

Here is @ContrarianUK take contrarianuk.com/ukog-update-august-27th-2017 on social media – UKOG

According to a poster on LSE, “I’ve looked into the equipment that has gone from around the mud pit. The big blue piece of equipment sat inside by the mud tank. Was a large mud pump for the drilling process. This has gone along with skips etc fwd. also the pipe rack skid can now be seen with nothing on the tower. The drilling side of works looks definitely completed. I already thought that. But now I’ve checked what this kit is, to me it confirms this.
So very much expect perforations completed or completing. All the arrows are pointing towards the significance again of the 31’st. Rig will be gone I expect.”

Interesting news from RGM (Regency Mines) that owned a stake in the Horse Hill development near Gatwick airport and completed the sale this week staying in their RNS on 24th August which stated “…..where the BB-1 well encountered oil in the Kimmeridge Limestone strata in drilling this Summer and flow testing is currently under way.”

The last sentence is key because they state flow testing under way, yet pictures from social media indicate the rig is still on site. UKOG’s last op update RNS on the 10th August said “Operations at site continue to prepare and complete BB-1z as a potential oil producing well from multiple zones over a gross perforated interval of 926 ft. Flow testing will commence after the rig has vacated the site, which will be announced in due course.”

A quiet week whilst shareholders wait for news from the Broadford Bridge drill site near Billingshurst in Sussex. There have been plenty of rumours floating around on the bulletin boards and Twitter with unsubstantiated rumours about a side track of a sidetrack, placing at 4p, problems and delays with the well integrity and so on.

Where are we with the UKOG Broadford Bridge flow test?

There were indications of seismic activity at BB recorded from the nearby Herstmonceaux British Geological survey monitoring station early in the week which could indicate that TCP (Tubing-Conveyed Perforating) was taking place to allow oil to flow from the reservoir. The truck with the TCP kit was spotted arriving at the beginning of last week.

There is still a lot of confusion whether flow testing  of BB has started.

Several large trucks arrived at BB during the week, bringing in equipment or perhaps removing some as the rig gets ready for demobilisation.

What is reassuring on the pictures posted on Twitter in the last day or so are two large storage tanks and it appears a third one is being built on a concrete base. Reasons for confidence about an outstanding result perhaps?

We should get more information from Steve Sanderson shortly via @share_talk on Twitter but it would be surprising not to get an RNS after the Bank Holiday break with an update on BB. Don’t forget we also have the Horse Hill planning committee meeting mid-September to look forward to allowing a production well to be drilled near Gatwick and for oil to flow.

Conclusion:

Regency Mines PLC (AIM:RGM) stated on 24 August 2107:

UKOG wont go on the record until new is released which make’s perfect sense, why speculate when the next news update could do the talking. Plus the readers must keep in mind that during bank holiday period in the UK, companies  take the opportunity to get away from the daily grind.

I personally dont know what to make of the RGM update, someone hasn’t spoke to the nomad or you could read it the other way and think they are happy to let is be printed? Looking at all the activity on the site and time frame since our update “Social media is alive with updates this weekend! UKOG & ANGS Oil & Gas” last weekend.

Nothing has really changed and one would expect an RNS sooner than later this coming week for UKOG. The one stand out point for Angus Energy this week “Council lawyers back planners in dispute over Angus Energy’s Brockham well

The details of the legal opinion were confidential, according to the correspondence, but a council officer wrote that the tenor of the opinion was not. The officer said:

“We have Counsel’s Opinion which confirms the view of Officers that the sidetrack is unauthorised. We are proceeding on this basis with Angus.”

Angus Energy has strongly denied that it drilled without planning consent. In May 2017, the company told shareholders it had consulted its own QC. She had confirmed that the sidetrack, called BR-X4, was authorised by permission granted in 2006, the company said.

Will this become an issue in time to come for Angus? One thing for sure, these oil and gas companies are under the microscope 24/7 and in today’s glare of social media, it is hard to keep out of the public’s gaze.

The fundamentals are still the same for both UKOG & Angus energy moving forward since our update (see below) last week. Now we sit back and wait to see how the coming week unfolds.

 

  • Flow tests conducted with rig on location. 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 in 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.

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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://www.share-talk.com/share-news/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

These two companies over the next couple months will have news on various fronts. This is can only be good for share holders, AIM investors.

@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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