Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The one thing we all know about UK Oil & Gas (UKOG), the massively over-valued company run by Lyin's Steve Sanderson is that it has virtually zero cash left and thus needs to get a placing away ASAP. To that end one would expect a proven ramper like Lyin' Steve to be give us ramptastic news from Broadford Bridge on an almost daily basis. Instead...
The last update was on 16 October, more than three weeks ago. Up until then we haqd sdeen 15 updates on drilling posted in the 19 weeks and 5 days since the start of drilling at BB. So it is one update every week and two days but now silence for 3 weeks and 4 days. Er...why?
The last news we heard was that BB " continues to flow light sweet oil and gas from the Kimmeridge Limestones.... Flow continues to clean up, demonstrating an increasing oil cut, together with sustained periods of associated gas flaring. The shrouded flare stack has been in daily operation, exhibiting a clean burn. Flowing Kimmeridge light oil and associated gas at both BB1-z and Horse Hill-1 ("HH-1") proves Kimmeridge contains a thick regionally extensive continuous oil accumulation. Optimised sequential flow testing of multiple 30-100ft zones planned to commence by end October 2017.
Upon delivery of further testing equipment, scheduled for the end of this week, the current completion assembly will be removed and, as previously announced, a more finely focussed and optimal test plan implemented. The planned programme is as follows:
· Firstly, proceed ahead to isolate, acid-wash and sequentially flow test multiple 30-100 ft existing perforated zones in the naturally-fractured KL1-KL4, and then; Perforate further naturally-fractured limestone reservoir zones in the KL1, KL2 and KL3, isolate, acid-wash and sequentially flow test multiple 30-100 ft zones, and finally; · Conduct a short cement squeeze in a section of the KL4/KL5, run a new cement bond log, re-perforate the newly cemented section, isolate, acid wash, and sequentially flow test multiple 30-50 ft zones. Flow will be initiated throughout the programme via the use of nitrogen-lift (without coil tubing), swabbing and/or pumping via the existing high-capacity linear rod pump.
Okay it all sounds very exciting but the one thing UK Oil & Gas has never released is actual flow rates although it insisted that oil was flowing some time ago. Why not release the actual rates back then?
And why the ominous silence now? If I was a shareholder, and I stress that I would not be since the share price already discounts BB being not only commercial but huge which ain't going to happen, I would want an operational update PDQ. I would also be seeing urgent assurances on the current balances of cash & trade payables plus also committed spend. But will that happen?
No news is bad news - keep selling at 4.825p.
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