UK 20:51 Tuesday, 10 November 2026
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At No-one is watching O’Clock (5 PM on the Friday before a Bank Holiday weekend) GXG listed US Oil & Gas (USOP) served up its interims and an operational update. Once again CEO little Brian McDonnell shows that he is a true comic genius. I take my hat off to Brian, he never fails to have me in stiches.
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Comments
wildrides
A dusty plot with no oil is not an asset ……… its a liability that requires maintainance !
How can the balance sheet have any value what so ever ?
Duck and Dive
Isn’t this all-singing geochemical survey the same one USOP had to abandon because the ground was too hard? Interpolation?
Can’t figure it out…all these surveys over 88 sq km but USOP only spent £32k in total on exploration in the 6-month period?
If free cash was c £350k 2 months ago, USOP are already running on gas – without ANY bank facility. SOS…where’s the auditor?
Based on these numbers (and FY13), it’s inconceivable that USOP have paid for credible, professional geo surveys as claimed.
Is #USOP’s “good progress” the same as the “satisfactory” progress RNS put out in the middle of E1, the well from Hell?
How can there be a USOP FDP without a viable discovery? Check out BP’s primer: http://www.keepandshare.com/doc/6968200/bp-learning-experience-2-1-pdf-85k … Farcical Devt Plan?
So, back to square 1, rinse&repeat. Surely only the USOP squaddies will pretend to buy into it? Who really believes?
Jeremy
Actually the amount spent on new surveys in the first half may be less than the $54k spent on total operations in the period in Nevada as this figure may include the pro rata payment of $1.5 per acre per annum due under USOPs 10 year leases with its land owner,the Nevada State.
USOP has always capitalised all its exploration costs incurred by its US subsiduary and in this half only $3460 has been capitalised and this is the figure given for payment for exploration & evaluation assets.
The report seems slightly vague about when or if much of the work commented upon was or will be carried out.
The liabilities due($314k) could include fees due to Directors and other connected parties as it is difficult to see who else would wait for payment under normal trading terms.
Incidently Duck & Dive interim accounts do not require an audit opinion.
On the subject of VAT refunds.I was not aware that either Nevada or USA operated this form of tax.I assume they mean sales tax on purchases which I think can be recovered or deferred in certain circumstances by exploration companies
Duck and Dive
Jeremy, the auditor has already flagged up his warning in the recently published 2013 annual report:
“Emphasis of Matter – Going concern and carrying value of exploration and evaluation assets In forming our opinion on the financial statements, which is not modified, we considered:
(a) the adequacy of disclosures made in Note 9 to the financial statements in relation to the Directors’ assessment of the carrying value of the Group’s deferred exploration costs amounting to €5,089,878
(b) the adequacy of the disclosures made in Note 1 to the financial statements concerning the Group’s ability to continue as a going concern. The Group incurred a net loss of £1,599,114 for the year ended 30th September 2013.
These conditions indicate the existence of material uncertainty which may cast doubt about the Group’s ability to continue as a going concern.”
They were apparently able to claim a VAT refund for FY2013 so perhaps that was on GB&I transactions – which presumably would mostly be their corporate overheads.
I bow to your presumably professional opinion but if only $3460 has been capitalised in HY1 then I would assume that the creditors are the alleged geo-services outfits who carried out the surveys upon which the operations update is based. On historical evidence, these would be firms owned by, or affiliated to, USOP director Karim Akrawi who also owns the passive seismic surveying firm whose findings have incestuously underpinned this penny hopeful. They would have known the likelihood of receiving timely payment from the get-go.
All in all, this outfit and its feckless shareholders are in dire need of independent opinions.