NB 1st published on Feb 27 2016. Republished here as a warning.
As ever yours truly has managed to get the info no one else can, on the Horse Hill players. I can exclusively reveal that UK Oil & Gas (LON: UKOG) (As well as others) are lining up a huge placing on the back of their Horse Hill success story. The last piece of the jigsaw fell into my lap this afternoon. Our City sources have confirmed it. It’s a tightly kept secret however we have four different sources all confirming that the Jermyn St bat phones have been buzzing since last week putting out the placing feelers. Not only on UKOG but on most of the HH players. There’s a big dilutive placing being lined up, we believe it could be as high as £10,000,000. UKOG results released today make interesting reading
The current market conditions will almost certainly mean that it will have to be heavily discounted. This shouldn’t come as any surprise to all those who know how the market at this level works. There’s a big promotion going on to get the UKOG SP up to higher levels so they can reap the benefit and place into it. CEO Stevio Sanderson has been doing the rounds on the ‘Promo Circuit’ these are the usual precursors to placing’s. Regardless of what cash they held circa £4.5M in todays RNS. Make no mistake. They’ll go for a cash and grab while their SP is buoyant.
They’ll be seeking to get as much money in as is humanly possible. Like most of the placing’s that come out of the Jermyn St offices, they’ll move very quickly, the placing will be done within 24/48 hours after they give the greenlight.
At current levels the placing would have to be sub 2p on a 30% discount. What that means is that any one holding at these levels will automatically take a kick in the teeth.
News from the site is being tightly managed but we think the Upper Kimmeridge will not flow at Lower Kimmeridge levels. Educated guess possibly up to 150bopd. We did hear that 80-100 bopd had flowed but could not confirm this. Looks to me like they are trying to get the Upper Kimmeridge up as high as possible to keep the good news story going, hence the delay in news. Once they announce phase2 and phase3 they will seek to place.
Remember once all the hullabaloo/news dies down after the flow testing (like most AIM stocks) the Horse Hill players will slowly start to fall in value until the next phase of operations start to hone interest again. Repeat cycle.
Don’t get caught in the cycle.