So yet again we’ve had the FTSE 100 finish above the psychological level of 7,000 again:
With Greece proving to be good for its word and paying back the IMF, equities around Europe were free to charge higher,” said analyst Alastair McCaig from IG.
The trouble is that Greece is still an economic basket case with youth unemployment well above 50% which means the stock market itself is a basket case for going higher today on the back of of such empty news.
But this is nothing new.
All it means is that values are even more out of whack with reality considering that the likes of UK Oil & Gas (LSE: UKOG) charged ahead 169% today on the back of a spurious announcement in which they:
estimate that the Horse Hill-1 (“HH-1”) well in the Weald Basin has a total oil in place (“OIP”) of 158 million barrels (“MMBO”) per square mile, excluding the previously reported Upper Portland Sandstone oil discovery.
The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the Company has a 20.36% interest.
The RNS goes on:
In order to establish estimates of total OIP within the licence area, the semi-regional resource potential of the Weald Basin’s eastern footprint is the subject of ongoing analysis under the contracted alliance between Nutech, UKOG and Solo Oil Plc. The results of the estimated OIP within the licence will be reported when completed.
Total oil in place (OIP) of 158 million barrels per square mile is therefore unproven.
I wonder if today’s ramp will be met with a placing to fund the rest of the research required to prove that there is in fact 158 million barrels of oil per square mile for this money losing/negative cash flow business.
Image: Green Hot Air Balloon