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1 Brent is now $41.30 and rising
2 The virus has not had direct detrimental affect on 88E
3 HRZ could signify a return to unconventional
4 FO's could be negotiated for conventional at North Slopes and XCD area
DW has shown considerable ability with the Charlie-1 FO.
There are a few reasons that combined for PMO to retreat, none related to Charlie-1.
Who could be future FO Partners?
Mid-range production company'e that ARE NOT present in Alaska,
AND they are looking for long term opportunity to get in.
Look at some sums. )))
Loads of Exploration companies in the regions surrounding Prudhoe Bay have invested shed loads of money. It takes time and persistence and money and experience and luck.
Some have succeeded, Armstrong, COP. They have been in the area for many decades.
But only a few successful companies compared to the list of 'not yet successful' companies.
Now return thoughts to 'outsiders' wishing to get into our region.
On the quick and the cheap and not having direct experience.
US$120 million over 6 years?
Orrrr, US$20 million over 3 months? Ha ha.
YESSS, being an FO Partner to 'the new and upgraded 88Energy Group' is a GOOD MOVE for oil companies wishing to get foothold into Alaska. AND, which other companies are as amenable as 88E Group (ha ha)?
With a team and proven ability to carry out field operations 100% to spec.
With little or no debt (net our decreasing loan to amount Alaska Gov owe us).
With growing Data Room for punters to browse and analyse. Like 'try before you buy'. )))
This 'Intellectual Property' aspect of 88E/BEX is highly underrated by 'people'.
We could put it into our Accounts as an Asset at, say, US$ 25 million, which is cheap.
Of course it pains Long Term Holders that SP has declined.
DW does not have a good business head at the Cash Level.
But as long term strategy, 88E is close to the Big Breaks.
AND, IMHO now, XCD could add value to our BoD and our thousands of acres of 'oil soaked land'.
What has happened, has happened, over last 6 years.
But we have Immense Assets and Immense Opportunity.
The 'new group' just has to place the next bore hole over a commercially oil soaked spot.
I think this will happen with next TWO drill FO's.
Phrontist
phron 13:18
I really love your energy & renewed enthusiam mate.
Phrontistery finds its origin in the ancient Greek word phrontisterion, meaning a thinking shop. The Greek word phrontist applies to a philosopher, a deep thinker or someone with intellectual pretension, and the verb phrontizein means to reflect. ... It can also mean a place for thinking, contemplating, or studying.
Keep It Up
Stay Safe, Sane & Healthy
keefy
Why there are no buyers ?
14:43 was that a rhetorical question or specific to todays trades?
I see, there are only sellers, no one is buying ? What’s going on ?
£286 worth of shares purchased today. Not all bad. At least someone wanted a few for their piggy bank. Maybe ask Dave that question? Not sure he will know though.
14:43
Looks like it, but right at the end the price shot up with no obvious big buys. I suspect some of the earlier sells were in fact buys. It happens a lot on the AIM.
uncrossing trade, Bid & Ask remain the same.
The only effect is that our closing price of 0.29 is now our "hurdle" for Monday's calculations.
strange the London Stock Exchange site has not updated with UT trade (as of 17:17hrs) but one thing with their new site is that there is a download button, which will enable anyone to download trades to Excel and do their own analysis of buys/sells.
https://www.londonstockexchange.com/stock/88E/88-energy-limited/trade-recap
Re Phronist point 4,
You relate to FO`s in the plural.
What are the chances if any of more than one FO on different sites . HRZ and beyond?
Not just a one trick pony once a year.
TP
Thanks Keefy.
Can deep thinking make it happen?
tarquinpike:
In a recent post, I am suggesting a possible 4 (FOUR) concurrent FO's...
Yukon JV
XCD JV
North Slopes conventional JV
North Slopes unconventional JV
I think that XCD would need a 3D Seismic, the best they have is an older 2D Seismic.
(...and we are paring all this money by way of 20% share dilution?)
I think Yukon (88E) is attempting a JV Group with our own AEA General manager and, urmmm, Exxon Mobile?
We have completed serious 3D Seismic up there, maybe for a wider area to enable justification for next moves.
Once a decent Data Room is prepared, an FO Tender could be released.
Timescale?? No idea.
North Slopes conventional is awaiting further analysis results from The Gods.
This could be sufficient evidence to also move forward with Data Room and FO Tender
Finally, PB's baby - North Slopes unconventional
This sounds like the wild card, but it could become the biggest and the best of the lot.
PB's postulation is that HRZ lies across many thousands of acres from a past historic era.
150 ft to 350 ft deep layer, consistent, oil drenched, thick layer called The Sweet Spot.
PB said anything from 1.5bbo to 3.6bbo. Quietly, it could be more when we discover the area size.
88E/BEX created excellent oil samples from the Icewine-1 drill of Spring 2016.
The Lab Results were literally excellent, better than Eagle Ford and other Texas Frack Sites.
We have a photograph somewhere of a glass of the stuff, like clear Apple Juice.
But it was Light Crude Oil of the Brent type. Moves along pipeline easily, is processed into petrol easily.
Brent Crude is over $42/b today. In two years it could, quite frankly, be back to anything - 50, 60, 80....?
If Lab Results are excellent, can we go back to Charlie-1 and do some Fracking on it?
Add some horizontals?? I am no expert here. But I know a man who might know.....DW.
Phrontist
The trades of circa 0.273p were buys, as I had a little top up and it showed red.
I wonder with 7 billion shares in issue are we heading for a consolidation or does that come with merger with XCD ?
Phronist, thanks,
missed your earlier post.
TP
23:38 why?
What is the necessity at present time, we are not dealing in the days of quills and ink wells and DW has said NO need repeatedly.
https://www.insideinvest.com.sg/shareinvestor-resources/2012/05/25/share-consolidations-and-share-splits/
Phron Fri 21:06
Can deep thinking make it happen? Not sure we can make oil suddenly appear but what you might find is clarity of thought, rather than blind panic.
Think about this; DW's business rationale includes this, regarding failure. "If you are going to fail, Fail Fast".
Meaning, if you know something has failed or is not what you expected, spit it out & move on.
My thoughts regarding Charlie & in particular the HRZ are; if those core samples & other data that has been retrieved during the drill, are not what they were expecting, don't waste time lokking for something that isn't there if it is obviously not present.
IMHO, DW would have pulled the plug on this within a couple of weeks if they hadn't found what they had expected. The longer we wait for the outcome, the more positive & positively price sensitve the announcement will be.
I might be totally barking up the wrong tree but I believe he would not keep the shareholders waiting regarding HRZ if it was another pig. Why would he? The SP is in limbo, the world is in limbo. What's another bit of bad news in the Big Picture?
Stay Safe, Sane & Well Everyone. Not too much longer to wait!
keefy
08:39
Staggered news or one big ops bulletin? :-)
ANN 21st May "Additional results from laboratory testing expected over coming weeks"
but nothing specific to HRZ at that point - rest of ANN all related to conventional.
ANN 7th April " We also hope to glean valuable information in regard to the HRZ potential in this area of Project Icewine and analysis will take place over the next few months"
XCD deal will probably not be finalised until some time in July so we may need to be patient as no doubt plans for NPRA winter 2021 (if happening) will be released after deal complete.
Keefy01,
There could also be the thought that DW is trying to stabilise the share price due to the XCD takeover.
If the HRZ results were "the goods" we would more than likely not require XCD but to release poor results would see the share price hammered and an even greater level of dilution to progress the XCD deal.
We'll find out in time. Although I believe the HRZ will be shelved.
plus of course
"Yukon Acreage • Discussions continue with nearby resource owners to optimise the monetisation strategy of the acreage; and • Permitting underway ahead of potential drilling in 2021 – subject to farm-out. "
Last Quarterly 9th April.
nearby resource owners - Exxon, Jade (Erik Opstad and Greg Vigil), Armstrong(Laginiappe) and from 2019 lease sale Oil Search.
Spinefx 09:58
Although I believe the HRZ will be shelved.
Seriously? Shelved, Back Burner or Abandoned.
Wasn't HRZ the sole reason for going North to Alaska?
keefy
keefy
Yes, shelved. As in no more, gone, moved on.
The HRZ was an opportunity to move the company away from Tangiers and PB provided the avenue. DW has actively been acquiring conventional assets ever since.
No one on the North Slope is doing unconventional, why?
SpineFX 10:35
So why drill Charlie 1 to ~11.1k Feet? Why not stop at Lower Stellar?
Perhaps Icewine: HRZ Liquids Rich Resource Play –0.8-2.0 Billion Barrels Liquids*
• De-risked by two wells: Icewine#1 and Icewine#2 – soft farm-out underway
• To be appraised in Western Play Fairway by Charlie-1
Why would DW boot potential 0.8 - 2.0 BILLION Barrels into touch?
Project Icewine captured the HRZ sweet spot in over-pressured, low-viscosity super-critical phase oil
• Data supports move to horizontal appraisal drilling and further fairway delineation
• Insights into kerogen transformation gained from advanced electron microscope analysis (FIB-SEM)
-Additional FIB-SEM underway on regional well cuttings to firm up prospective fairway
• Charlie-1 well, 1Q2020, designed to penetrate HRZ and gather additional data
Am I missing the boat here? Perhaps safer to wait & see.
keefy
10:35
The North Slopes applies to much of the region sloping down to Prudhoe Bay area.
88E have purchased an area within this called Central North Slopes, which PB focused on relating to his geological studies.
So, we are the only prospectors for unconventional in the region. PB had geological reason to propose the HRZ Sweet Spot, a consistent large area of about 11,000 ft down.
His belief is that once HRZ has been proven in one place, then identical drills can occur over the region for decades. The new improved horizontal drill and frack practice has made this project more viable than he originally thought.
It seems that 'BEX / 88E' may have good university contacts assisting in geological analysis of our Central North Slopes area. I think BEX / 88E are determined to prove this project as a commercial oil resource for long term oil production. IMHO this long term work and investment will prove to be positive.
Phrontist
keefy,
Forget everything we were told about Icewine, it is not on the sweet spot. It is bitumen. De-risked? Well I suppose it proves that no more drilling should be done there, at Franklin Bluffs.
Dave negotiated the deal with PMO as part of the Farm-out to drill/acquire core from the HRZ, as part of a "proof of theory". Do you not think it strange that no mention has been made of the much vaunted Vapour Phase at Charlie?
One would assume with such a large prize on offer that if the mysterious Vapour Phase was detected in the pipe, DW would be promoting the news............. Silence. What until results from the lab are forthcoming, we are told.
My thoughts, we missed it by that much.
I think it will be a while before any news on future of HRZ, my opinion is that conventional projects inc. Peregrine offer us the best opportunities of near-middle term success, but if it isn't impossible it must be possible.
ANN 7th April " We also hope to glean valuable information in regard to the HRZ potential in this area of Project Icewine and analysis will take place over the next few months"
Little things do matter, punctation for instance.
https://metro.co.uk/2020/06/06/drivers-hit-parking-fines-councils-grammar-blunder-sign-12813754/?ico=pushly-notifcation-small&utm_source=pushly
Nothing to do with 88e or HRZ of course, but the roadsign I generally smile at is Slow Men at work.
Still hoping for a good HRZ result, but would not be surprised if most effort is directed to the XCD prospect, which is just meters away from Umiat.