By Tom Winnifrith, The Sheriff of AIM | Monday 21 June 2021
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.
UK Oil & Gas (UKOG), the member of the minus 97% club run by Lyin’ Steve Sanderson, must be ready to pull the trigger on a bailout placing judging by news this week. Indeed there are suggestions that it is already looking to place 2 billion shares at 15% discount to the 0.2p bid so raising a gross £3.4 million, call it £3.1 million net. The pre dump ramp is from Turkey.
Lyin’ Steve says that his company is pleased that “following completion of the Basur-3 appraisal well’s drilling pad and finalisation of the rig contract, the Oceanmec Karahan ZJ40DZ rig has now been mobilised to the site from western Turkey. As of 2359 hrs on Saturday 19th June, 38 related loads had been received at site. The rig-up and rig-acceptance stage is expected to continue throughout the coming week with an expected drilling start shortly afterwards.”
This field was last tested with a proper well back in 1964 so to call it appraisal is rather over-egging the pudding. But that is the nature of a release from Lyin’ Steve.
Even Steve has to admit that “It should be noted that the data quality, record keeping and operational practices employed in Basur-Resan’s 1950s-60s wells are considered poor by modern standards, hence the necessity for new 21st century data acquisition and knowledge to properly assess the discovery’s overlooked potential.” Or lack of it.
On 21 May, UK oil & Gas stated:
“The agreed 2021 joint venture work programme of Basur-3 and 120 line km of seismic is estimated at an aggregate gross cost of approximately US $5 million excluding coring, post well analyses, seismic processing and drill and seismic related contingencies.
In order to deliver the Company’s stated strategy and growth objectives, it will require further funds in the near future for, amongst other things, its funding obligations under the agreed work programme for the Resan Licence and any of the new Application Blocks should they be awarded to the Company and its partner.”
In other words, UK Oil & Gas cannot pay for drilling set to start next week without an equity raise.
So Steve you have done the ramping, what say you? Is it 2 billion more pieces of confetti at 0.17p or not? Time for a statement methinks or are you waiting for all the bucket shop clients to forward sell first?
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