The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Definition and detail from school science learning about exploring for oil:
Cap rocks
Oil and gas can only be trapped in reservoir rocks if there is something above to stop them escaping. This needs to be an impermeable rock or ‘cap rock’ that will not let fluids flow through. Although well-cemented rocks are usually impermeable to begin with, they often become cracked later, allowing oil and gas to escape.
Do we have any RNS or Presentation details on cap rocks covering the reserves we are targeting?
Have our reserves depleted naturally a few thousand years ago?
Over to the geology experts.......
Phrontist
I find it strange that Rabito posts here to pick Jiddy up but not on the BB of the share he(she)actually invested in, even though today seems to be a good day there too.
Still everyone has a right to an opinion :-)
Quite right Blingy and Shaa - who’s to say when we will have our day in the sun - PB was no amateur and similarly DW knows his stuff in negotiating on our behalf - sometimes you just have to trust in the professionalism of those who headed this all up - VGLA!!!
Every other share has had its turn, why not us, about time.
Just need DW with a positive RNS about Charlie 1.
Hi red irons
Yeah all good and share price showing a blue today
With peregrine acreage now this puts us up to 700k plus acres holding
Gotta make us one of the largest if not largest holders of acreage on the north slope
Also quite right bout eagle ford sure I read their last attempt drill was the ticket winner after 150 tries ???
We’ve done a couple only to date
Great posts Phron, Jiddy, Blingy and great to hear from Mickey again as well - it ain’t over till the fat lady sings and remembering Eagle Ford was no overnight success, then PB’s legacy here may yet prove to come to fruition - VGL to all true 88ers!!!
Glad I stayed now.....
G'day Mickey. Did you see the Bedfordshire outfit pumped that blimp.
Hi mickey lovely to hear from you and hope you and yours all well and healthy
Yep seems we’re back on the horse with Dave and be good to see any fo partner may be on all options
Also be nice to a catch up maybe
Sometime when things get back to normal In London maybe
You upbeat re presentation then
Phron
What's $1billion divided by 1 billion shares=.....
You're right about IP an important asset. Even though DoG Alaska releases results after 2 years I expect there is sufficient proprietary IP with 3d seismic and lab results etc to sustain a few more data room meets. Interesting IP issue here; who owns copyright and onwhat. Whatever, 88e interest is tied to lease period 5yrs and 10yrs.
Jimbeaux
Hi Blingybird hope you’re well. Presentation looks great with a lot of upcoming activity to look forward too. The fun starts again
10:38 'If they borrowed money in early exploration' Who would have a business model to lend, unsecured, for that risk?
Fair enough a company could borrow against proven reserves or other tangibles and use that money to further explore but apart from the arrangement with Bank of America involving the long awaited tax credits I think it rather misleading to make a virtue of declining something that wouldn't be available to 88e if they wanted it.
Cash Raise? Nasty smell for shareholders? True.
But we are on AIM Market.
This is where Investors meet Entrepreneurs.
We are buying into a companies future business position.
88E remains a business with extremely good prospects.
If they borrowed money whilst in early exploration phase, the balance sheet would degrade.
Leaving two ways of raising short term money - FO and CR.
And when a well is fully derisked, it can be sold for a substantial amount to a production company.
Leaving us with surplus cash in bank and many more wells to explore and derisk.
Not every step of the way will be successful as in oil flow.
But every step adds to geological knowledge which guides us to - OIL GUSHERS.
So, to LTHers, grit your teeth and look forward to next vertical drill and first horizontal drill.
Phrontist
Jam it may be, but it was ramp up from these prices and money to be made on the run up to the next drill
The presentation states what we already knew, more or less.
The picture and outlook is extremely good.
It is a well prepared document consolidating our overall position.
Four FOs on the go, all with pretty good prospects of success.
Real debt is nil.
The company still does not show our Intellectual Property as an Asset from an Accounting viewpoint.
But I would say, it's value must be many 10's of millions of US$.
If the 88E Group agreed to a US $ 1 billion, that values us at US 10c per share approx.
Personally I am comfortable with prospects noting some regional Oil Flow Rates are over 3,000 bopd using horizontal technology.
Soon we will have at least one of these, maybe a few.
Phrontist
Good old Davey! Lovely bit of jam :-)
Good call, take your own advice and give up
Hold tight Here we go again another spin of the wheel
Farmout looking at now and 2 drills 2021
Another farmout for peregrine
Dave certainly puts a positive spin on it
Good luck all
Balance Sheet in Good Shape
• >A$7m in cash with no major expenditure items in 2020
• 2021 drilling to be funded via farm-out
• State of Alaska court case decision to enable payback of credits owed to 88E possible in near term
• Potential to clear US$15m of debt from balance sheet in 2020
Gives us hope :-)
http://clients3.weblink.com.au/pdf/88E/02258013.pdf
Looking more promising, especially Peregrine - "farm-out discussions underway for drilling of two wells in 1H2021"
I guess that'd require drilling in Q1, results April onwards in Q2. If DW can pull that off, then the acquisition of XCD will have been very worthwhile.
Icewine looks like it'll be a while longer before any more drilling, Peregrine does sound like the more advanced of the two in terms of a farmout process.
Looks like there is still some life left and all to play for