Horse Hill & UK Oil & Gas; Lenigas bowls a googly

Comments

1. ---

   MrContrarian

   5 June 2015, 01:45

   “for Schlumberger to have allowed UKOG to released today’s Petrophysical Evaluation on Horse Hill is even more impressive”

   Why? If you commission a report from Schlumberger surely you have the right to publish?

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   wildrides

   5 June 2015, 02:00

   Point is the oil is worthless unless you can get it out . No one is going to allow the Weald to be turned into West Texas with well heads every where . They will never get planning . So no ramping necessary ……….. move along please ………. nothing to see .

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   Steve

   5 June 2015, 03:36

   Andre,

   You say the following,
   “But for now, anyone who is considering shorting UKOG and indeed any of the Horse Hill consortia, please think again, you would have to be certifiably insane to do so.”

   Why? UKOG is currently valued at around £50million – how are you justifying this valuation? All that the report confirms is that there is potentially a lot of oil deep under the Weald basis – we knew this already. How to UKOG go about confirming how much is there, whether it is commercial and how to extract it and more importantly how much does it cost?

4. ---

   DUCK AND DIVE

   5 June 2015, 03:52

   “it is businessmen like this that have made Britain great and we need more of them and we need to encourage them and support them if we are to succeed as a nation.”

   Well said, Dave.

5. ---

   Wiggly

   5 June 2015, 09:46

   I don’t know who Andre Brand is but he does not know much about the oil industry. There is nothing at all “breathtaking. There is no other word to describe Horse Hill” about UKOG’s RNS. Horse Hill will be just another relatively small oil field in the Weald if it ever gets developed.

   And what about these breathless remarks about selecting large service providers:

   “No commentator ever gave any credit to NUTECH or indeed UKOG for hiring one of the best petroleum geoscience companies around. UKOG also hired Xodus Group, another highly respected team of petroleum geoscientists to report independently on the oil in place volumes contained within the Horse Hill conventional Portland Sandstones, again, I do not think enough credit was given to UKOG for that appointment either.
   With criticism lingering, what did Dave Lenigas and UKOG do next? They approached Schlumberger, the world’s leading independent petroleum industry experts that specialise in providing governments, yes governments and the world’s major international oil companies with services such as seismic data processing, formation evaluation and petrophysical evaluations.
   So now will the market give UKOG any credit for hiring Schlumberger?
   Well if it doesn’t then we should all turn the lights off and go home.
   The news today is so incredible on many levels.
   For UK Oil & Gas, by any standards a minnow oil company, to have secured the services of Schlumberger is in itself pretty incredible, but for Schlumberger to have allowed UKOG to released today’s Petrophysical Evaluation on Horse Hill is even more impressive.”

   Sorry about this absurdly long quote from the above article but NUTECH, Xodus and Schlumberger will do any work like this if you pay them to! There is absolutely no credit whatever due just for hiring them – or anybody else! And of course a company hiring these consultancies can quote from their reports – the company, not the consultancy, owns the report.

   And then there is this sycophantic rubbish about Mr Lenigas we read all over the bulletin boards:

   “And for those reporters that might want to have a go at Dave Lenigas, just have a think. This is an entrepreneur, someone that has got stuck in and made something happen, it is businessmen like this that have made Britain great and we need more of them and we need to encourage them and support them if we are to succeed as a nation”.

   Just embarrassing. Lenigas is an outstanding self-publicist who is ramping for all he’s worth, perhaps to ready mug-punters for a fund-raise in due course. It is sad to see so many taken in.

   Brand then writes:

   “The Weald Basin has the potential to generate billions of pounds of tax revenue to help fund schools, hospitals, create jobs and provide the UK with much needed energy security. We should remember that”

   The Weald has already generated millions for the Treasury and will hopefully generate millions – but no way, billions – more.

   “and we should also remember that this is a conventional oil play, a tight oil horizontal well recovery system technique to enable oil production, its not fracking.”

   Part of the play is indeed a conventional oil play but to get the full potential of the acreage Lenigas boasts of will most certainly require fracking. And what are the chances of that being allowed in Sussex?

   Mr Brand says he owns shares in “one or more of the stocks mentioned”, presumably UKOG or another licence holder. I think he is trying too hard to push his shares up.

   If you want to read about this story from someone who understands it, read the articles on this site by Steve Brown. He is apparently also a shareholder but his articles contain analysis, are more balanced and are rather more insightful.

   NB I am not, and have never been, long or short on any company involved in this story.