Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Good recovery today given the earlier woes on global markets due to Coronavirus.
Plenty of potential upside to come given what Charlie could reveal - multiple of today's sp definitely possible.
The geology isn't changing and the technology is improving, reading tea leaves is the blind leading the blind.
Likely because they're producers and the oil price is falling due to worries over coronovirus amongst other things.
No worries over stagnant share price, it may be actual news of spud is needed to get other punters' interest.
Post Charlie-1 Strategy – On Success
Fast Track Delineation to Enable Monetisation
• Low capex strategy over 2-3 years to minimise dilution and maximise sale value per
share
• Success will result in a horizontal well being drilled from the Charlie-1 vertical well bore
in 2021, as well as a likely step out delineation well*
• Additional drilling of 2-3 wells in 2022 will define the resource potential to the point of
sale for 88 Energy
• Net cost to 88 Energy circa. US$30m over 2 years – minimal dilution (est. <4%) with
maximum returns for shareholders
• If Charlie-1 successful, Premier likely to exercise option over Eastern Fairway of Icewine
acreage resulting in a carry for 88E on US$15m of 3D seismic in 2021
• => additional drilling in 2022/2023
Funding large scale development capex is not part
of the 88E strategy
Drilling and Logging
• Drilling to Total Depth (planned ~11,400’), Logging While Drilling and Wireline Logging estimated to
take ~30 days
State of the Art Subsurface Evaluation Program
• Utilisation of the latest proven technology
• Program specifically designed to evaluate:
• Formations that may have laminations resulting in low resistivity pay
• Formations with low to moderate permeability
• Formations with considerable bound water
• Prior to advent of specialist tools, the above challenges often resulted in pay being left behind
Flow Testing
• Subsurface evaluation to be followed by up to two production tests
• Zones of interest and final test design to be determined by results of logging
• Each test estimated to take ~14 days
Reporting
• Total program estimated to take ~60 days, with reporting of results determined by materiality and
continuous disclosure obligations