Member Info for Bridgedogg1

"Gas must be the problem" - oh no, not more resources to sell. Nightmare.

Few people on here having a bit of a laugh today me thinks. Maybe some bitter souls who lost money elsewhere...

Get invested rather than shorting and then having to be negative to make money, its better for your health (and wallet) in the long run, it is here at least anyway....

Whens that pesky rig gonna turn up? Most of the work has been done, very astute IMO.

Peace

Bits - I did say IMO - and IMHO this company will never be worth £3.25b (50p/share). That based on 4 years of being invested here, following the companies ups and downs, reading the presentations, news and most importantly the 88e wiki which is amazing.

Theoretically if we had hit oil on all of our drills, got an amazing farm out deal(s), quickly moved to production with the intention of taking production income and developing our other asset ourselves, with a bit more luck on drills and a bit more luck on oil prices and a bit more luck on farm outs then yes, with our assets maybe we could have been worth that BUT none of that has played out. That's why we are currently 1p/share. Well below what the assets are worth IMO but really it has been a bit of a disaster to date. Don't get me wrong I love the company and am emotionally and financially invested in its success. With the stated intention to sell/Farm out/monetise assets from here there is a cap on the realisable value for 88e and I think that it may only be Yukon that we will ever receive production income from. If we are very lucky we could see a buyout for 1b in a year or so, if it all comes good. But who knows what the future holds. I have no crystal ball and am usually wrong. Lets see what DW has up his sleeve. All IMO as stated.

jawdz
If you are looking to base the valuation of the company and the safety of your investment on profits then I don't think Oil and Gas exploration is for you, certainly not 88e for the next 5 years. These companies obtain licences, prove up assets with monies raised for share issues and then (hopefully) sell all or part of the assets to a larger company to develop. Until the asset is sold or costs covered by farm out there is always a risk of another share dilution, even here. We could conceivably get one with the farm out announcement, perhaps to drill Yukon with a partner or to partially contribute to a conventional well, though I think it unlikely. We have 3 key assets represented via 3 sub companies which the we have now decided to either monetise through farm outs or de-risk via partnerships. We will hopefully be looking at profit down the road if we retain royalties from production or more likely sell on our remaining WI once we move into the production phase.

We have been unlucky on our drills, there is still some proving up to do and hopefully the cost of this final piece of the puzzle will be carried by the new farm out partner, but this will mean we lose more WI, or obtain less value, than we otherwise would have had we flowed oil.

Oil and Gas exploration/production companies can be better valued by profits, there are often mid tier and can offer really good value though there is usually some over/under valuation built in with regards potential/risks. I am currently invested in UKOG which is ramping up production in the near term with a much smaller asset base than 88e. Dilution is a real risk there.

Large oil and Gas companies can be much better valued in terms of cash flow, you will not get any dilution but they are essentially a play on the oil price. Maybe that is for you? 88e offer plenty of risks with the chance of large rewards £££££££(BTW the share price will never be 50p)

All IMO and all that

Remeber DYOR and GLA all IMO and all that

Desmond

A farm-out is a sale of assets. It is not 'technically' a dilution unless more shares are issues, which technically would be a dilution.

Update coming tonight imo

Jeez, Angus flowed 3000bopd from Kimmeridge at Balcombe-2z its not just a trick of the geology under horsehill

a big buy could push this up, Conleyj?

Conleyj
...

Glad to see we are still moving up, assumed the gradual decline would start again after the recent rise to near the top of the trading range. Would be nice to break free of it before announcement.

WI transfer requirements looks like a complete pain in the backside, DNR may well request additional info too. I hope it doesnt go beyond July...

Oh and on Kimmeridge flow 'uncertainty' have a look at Balcombe horizontal

"The test utilised Nitrogen and coiled tubing to clean and prime the well which when removed allowed a natural flow at 853 bopd equivalent, not including 22.5% water. A second flow period was undertaken with the well flowing naturally at 1,587 bopd equivalent, not including 6.6% water. The Balcombe-2z well produces from a single Micrite Layer, just one of the Kimmeridge Micrite Layers. During the initial flow period, the well slugged at up to 3,000 barrels per day which had to be reduced as it exceeded separator operating capacity. Duration of the test runs were limited."

So yes the initial flow was 3000, that wont be maintained. Second flow was 1587, unlilely to be maintained over 12 months. But 1300? 1200? No worries. Portland is commercial at 200bopd. Once we are producing from Portland Kim just has to be commercial at the marginal cost. So yes no worries there I think.

"Portland test production remained robust, continuing at a stable 220 barrels of oil per day ("bopd") from the unstimulated HH-1 vertical well using a very modest pressure drawdown. The test continues to provide further data necessary to finalise development plans and surface facility requirements."

"For prudent Portland reservoir management purposes and to ensure there is no detriment to the expected high performance of the HH-2 Portland horizontal well, the average pumped rate from HH-1 continues to be maintained below the previously reported 362 bopd calculated sustainable rate. As previously stated, based upon well-established reservoir engineering metrics, it is expected that HH-2 has the potential to achieve a rate of 2-3 or more times the HH-1's vertical rate of 362 bopd."

"This robust EWT performance led HHDL to declare the Horse Hill Portland oil discovery to be commercially viable in October 2018."

Doesn't sound like cherry picking flow rates to me - SUSTAINABLE RATE

Kimmeridge is still an unknown quantity in terms of what it will eventually produce but there is no denying the amount of oil that has already been taken out of the ground and that it came at a faster average rate than Portland.

Mirasol

Thanks for the info makes complete sense - The layers are the layers it’s just about communication between them - load of oil

That 1m buy on the ASK sparked a mini FOMO buying spree.

2.5m buy- someone thinks it will be a good week for ukog. Good call.

JB has raised the maximum allowable - will it be enough?

The BLOE horizontal targeted 325bopd and got 1100 bopd. Maybe we will see something similar with Portland - 3000bopd/well anyone??? thumbs up emoji

Do we still refer to the 'KL' layers? KL3 and KL4 commingled and now shown as a continuous pool of fractured rocks from K2 to K5 and possibly beyond?

No wonder they need more time to work out the optimisation of Kimmeridge at Horse Hill.

RNS any time any day. GLA

88e Twitter follows 2000 accounts. I doubt they are getting services from all of them.

Got shite quickly