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In an exclusive interview with Tip TV, David Lenigas, Chairman of UK Oil and Gas, Rare Earth Minerals and AfriAg talked about the Horse Hill developments close to Gatwick Airport. With the announcement of the discovery in April, the shares shot up 164 percent, and the AIM shares were suspended pending an announcement on reserves. We talked to him to hear about how UK Oil and Gas and his other AIM listed companies are doing.
Understandably Lenigas approached this interview defensively considering that the sensitivity of the subject led to trading of UK Oil and Gas (UKOG) shares to be suspended last week.
He began by commenting the despite the media furor, very little had changed on the ground and in reality.
UKOG have been drilling next to an oil Esso site from the 1960s, but incorporated the most modern techniques and technologies that were unavailable until recently. They set out to drill the deepest well in England and in doing so hit good indications of what may lie ahead. Being able to draw on the very best technology has enabled much more accurate exploration, but also is a lot more expensive, and takes longer to interpret.
When questioned on the expected rate of recoverability, Lenigas referred to the pending flow testing. He added that there are already a number of producing wells in the region, so it is not as crazy as the media frenzy may imply, but before anyone pushes further with predications, they should wait for flow testing results. UKOG have partnered with industry leaders to deliver these investigations. He added that there are externalities like Government licenses to consider too, which can hinder the process.
When pressed on the share price movements, Lenigas pushed back noting that he is a company Chairman and not a strategist, and he will not comment in that arena. However, he did note that the fall in the oil price has played a key role in allowing UKOG investments to go on an acquisition spree and become a dominant player in Southern England.
