Member Info for dazzle1000

Jptop7 hope your derisking plan pays off for you... great strategy to use and very prudent... wishing you all the best and those who truely believe in the 88e story. A journey and a financial adventure once in a life time opportunity. ... to put into perspective and putting AL and 50/50 aside " the saudi gawahr field is huge but it has been run as a private company for decades until next year perhaps.. now alaska which holds prudhoe bay 30bn recoverable comnercial oil 15bn roughly extracted already, was fuled/ replenished by a source rock uhm sounds familiar... thus source rock gave 36bn to prudhoe bay which originally had 90bn in the beaufort arch i believe. Until the anrak meteorite hit prudhoe bay and leaked 60bn over millenia sorry to say.. but a happy ending to conclude this tale of not woe but joy WE icewine are one of the source rock formation shublik being the other part 60% contributing.. yes that means icewine gave 40% around 36bn. Leaving 30bn OIP of which our shale fingers crossed can flow akind to commercial oil... so anywhere between 17% and 50% depending on certain factors of course being ticked off... of which many ticks have.. and reassuringly by paul basinski with his amazing knowleadge has given us part of his legacy, not looking a gift horse in the mouth but a gift all the same. Is to experience an amazing and im hoping an historical event rarely seen not since eagle Ford in Texas ( now helping america produce and export oil ).... god willing and with paul by his side and in the spirit of his dream, we can share this dream and see it materialise into something special that we can talk about in years to come and say yeah i had faith and held on to the belief thst this will flow and make our lives a little more stable and secure..... regards dazzle

Found this link to a slide show of how artificial lift works... https://www.slideshare.net/AndresMartingano/al-selection-process

Thought i link this in for those who like to challenge their grey matter... (disclaimer) this link may contain info that people may find challenging. ... https://www.ektinteractive.com/artificial-lift/

MB: And will ICEWINE2 go to production, is it planned as a production well do you think for the future or is it literally just a test at this stage? DW: It’s a test well, contingent upon the results it can go on a longer term test up to 6 months, and that will give us some useful information about how the pressure drops in the reservoir and then the performance once that happens in terms of decline rates and so forth. And then the follow up plans will be a horizontal well initially with a multi stage stimulation, and that will give us an idea of the relationship between the rate that we get in the vertical well, which we think if we get something in the order of 100 barrels per day is a good look through to a potentially commercial rate from one of those horizontal follow up wells.

Q&A 35 : DW...We remain confident as per previous guidance. The sticking points are now deliverability of the reservoir – have we effectively stimulated a large volume of rock or created ‘planar’ fracs? Can we get effective connectivity to the reservoir itself, where the pore throats in the hydrocarbon hosted pore spaces deliver oil to the created fractures? Will the fracture remain open over time? Have significant ‘fines’ been created that will clog the fractures? This is a subset but gives a flavour of some of the outstanding risks/questions. 36. what are your thoughts on flow of HC after swabbing has finished, (how soon if at all would you expect a flow?) hours,days,weeks? Why is swabbing so expensive, what are time scales, will the narrower Gage tubing stop in place after flow or will it be removed? We are not planning on swabbing – gas lift is the current plan as it is the most effective at both lifting fluid and reducing bottom hole pressure. Swabbing is the least expensive option – but also the least effective.

The 88 Energy boss also talked about the possibility of a partnership deal for the shale, albeit he said that any deal would depend upon the outcome of testing operations and future work. “What we always say is that we’ll do the best thing for creating wealth for our shareholders, so [we’ll do] whatever is accretive. “One of the things we’ve also been communicating and guiding in recent months is that we have spent a lot of shareholders' money on this project, Project Icewine, and predominantly in relation to the HRZ [shale discovery], but, also on the conventional. “We think that it is appropriate that we start to validate the value that we’ve created, by bringing in a third party to help bring the project forward and also underpin the valuation of the company by having a ‘look through’ transaction which will show that someone else from industry also agrees that we’ve created significant value.” ..... http://www.proactiveinvestors.com.au/companies/news/196643/88-energy-well-test-restart-is-only-a-few-short-weeks-away-196643.html

Icewine No. 1 tested the potential of the HRZ shale and also conventional targets. The company initially planned to return to the well to drill a lateral with multistage fracturing but later abandoned that project in favor of drilling the 11,200-foot Icewine No. 2 well. The vertical well would be cheaper and simpler than a lateral and would provide a wider array of rig options, saving some $5 million in operating costs, according to the company..... http://www.petroleumnews.com/pnads/924157051.shtml

Lazarus651,537 Posts. 119 25/05/1813:48:30Post #: 33309739 Pangzi2 said: ↑ I don't think you will get much argument with the fact that IW2 flow result is the key at this moment. But the point is that while the market will only look at bopd before voting with the SP, industry players will look at much, much more. They will look at the frack plan and whether tweaking that could result in quicker completion/flowback timeframes. They will look at decline rates and whether that balances (positively or negatively) the initial flow rates. They will look at GOR to see if the composition of the flow rate affects the economic potential of development. And mucch, much more. They will determine whether the rich data from what the market has priced as a 'sub-optimal' or 'failed' 2V justifies pursuing and already permitted 2H flow test. While we are at it, have you thought about the converse scenario where the market gets over excited about the 2v flow rate and hypes the SP far beyond a fair reflection of intrinsic value? Sounds like a nice problem to have if contemplating a rapid exit....but in that scenario, less likely to have industry partnering and more likely to fund ongoing funding for broader reservoir/acreage appraisal and delineation from CR (probably insto rather than retail). Too much paper from fund raising raises other risks and complications IMO, and the sooner we get industry involved the sooner the creaming starts. I may be reading announcements with rose-tinted spectatcles, but I sense that industry conversations and options are already in the mix for both conventional and unconventional (separately), each subject to certain triggers for both farmer and farminee. Time will tell.

28. Why wasn't the correct equipment ordered and ready for artificial lift pre-winter? As 95% of all wells need such an assist. DW 95% of wells do not need artificial lift. It was theorised that the soak would mean we did not need it. Ultimately, the well has done something unexpected. It is a new play – this will happen from time to time. 29. What point in the advancement of the unconventional prospects is seen as prudent to explore a 'farm-in' arrangement, to speed up progress, reduce need for funding from the market, share risk etc. ? DW A probable year, a probable number of drills, a probable point in the spend curve, …. Any of those are a reasonable way of adding to our understanding. Any time that the right deal can be struck that maximises shareholder value. Typically this is post 3D seismic for the conventional and post decent flow test from IW#2 for the unconventional. We have come close on both prior to these events – which is a testament to the quality of the project but ultimately we did not close a deal.

24. With the possible Conventional assets being in excess of 1Bb. Is there the possibility of developing a part field strategy, which will bring income, whilst proving up the Unconventional play. DW YES – it is possible 25. You suggested that you may not be around for full field development. Since then Conventional leads have appeared and may grow further. Do see yourself being around for full field development, for just the Conventional play.? DW Also unlikely. Same strategy – prove it up and sell it to a bigger player would make more sense. 27. Is it possible that a 'farm in' arrangement, to progress the conventional prospects, will include a timely injection of funds that can remove/reduce the need to raise money by other means for the advancement of the unconventional prospects? DW It is possible 28. Why wasn't the correct equipment ordered and ready for artificial lift pre-winter? As 95% of all wells need such an assist. DW 95% of wells do not need artificial lift. It was theorised that the soak would mean we did not need it. Ultimately, the well has done something unexpected. It is a new play – this will happen from time to time.

20. Prosperity and Beyond 1. What does the JV place as the chance of success for the artificial lift working given that the Frac fluid flow back / clean up was occurring naturally till shut in granted at a slower than expected rate to achieve the > 30% expectation prior to expected reservoir connectivity and then hopefully production testing? That is the specific phase of flow back / cleanup chance of success and not just the overall chance of success for the Icewine 2 vertical well. 2. Dave I know you can't speak for Mr Paul Basinski, however does the JV still maintain the theory that HRZ oil migration occurred via the thrust belt as articulated by Mr Paul Basinski in response to Mickey's question in the London February 2017 presentation video? 3. I ask question 2 above on the basis that once the Frac Fluid has been retrieved > 30% is the belief and expectation that the HRZ reservoir will flow on a similar acknowledging that it won't be exactly the same as the theory above given the thrust belt theory obviously occurred without Frac fluid? DW Artificial lift is highly likely to effectively lift the required fluid off the reservoir. We will release the plan and modelling over the coming weeks to support this No reason to change this. Not sure what this question is but I would guess that this will have no bearing on the outcome.

18. blondedog 1. Given we have now shut in for winter with no plan in place for this to happen would Dave still consider that when we come out of hibernation are we still looking at 50/50 for a successful of IW2 or has the chances diminished to something less than 50/50. 2. Are we considering becoming a producer with a partner on the conventional oil to give us a war chest to do more work on the HZR at so point down the road. DW We have not modified the 50/50 – if there was a material change we would announce. We consider a lot of things. This is a possible outcome. No guarantee it will happen though.

17. Cosmoterios 1. Why didn't the company use anti-freeze, which I believe many drillers in that region are doing - including BP, at Prudhoe Bay? and 2. How come IW1 was able to be completed during the Winter, but not IW2 - why wasn't the company prepared for the cold (IW2) when they are operating in the Arctic region? DW Companies do not use antifreeze in this manner. Drilling mud has agents in it that prevent freezing during drilling operations (which we of course used when drilling as do all operators). Flowing back frac fluid – which is basically 100% water (antifreezing agents are not used in frac fluid – it would not be allowed). Water freezes. As per above – frac fluid is 100% water and it freezes in winter. Fraccing can be done in Arctic conditions but it is far more expensive and carries increased operational risk. We try to mitigate risk where we can. Obviously, we had hoped to have finished the cleanup prior to winter onset (oil does not freeze so we could have continued flowing if we had oil…). Ultimately, we cannot predict the future and this is a new play so we are going to continue to encounter things that we did not expect. Hopefully the next one will be positive.

14. Spinefx With the release of the updated Spill Prevention Permit, that contained detailed info pertaining Bravo and Charlie for late 2017/early 2018. As you would understand caused quite some excitement. Why has this now been delayed? - Funding? DW - Resources would be stretched to thin? - Focus on Icewine2v? - Existing 2D seismic inconclusive, 3D required? - Early stage farm in discussion? - Or other reasons? We concurrently permit all potential activity – it does not mean we are going to execute. It just means we can if it is appropriate. If we did not permit B/C and then we wanted to drill (or someone else wanted to fund drilling) and the permits were not in place then that would not be a very good outcome. On that basis – this is not delayed – it is just not considered part of the BOD plan to maximise shareholder value in the medium-long term. 2D is not inconclusive – 3D provides more detail and decreases risk to a more appropriate level. Basically, we believe that the conventional potential is exceptional and we don’t want to drill in the wrong spot and get a false negative. We aim to get this as right as we can.

DW Yes horizontal drilling with multiple fracs has less issues with removal of frac fluid. Confident. Modelling of the shut in data is confirmatory. There is risk of some closure over the prolonged shut in period. No – seismic work (as with the 2D last year) is done in winter on snow. $6-8m (net) is the estimate provided in the latest presentation for cost of seismic. This is in the presentation also Slide 16. US$14.6m in cash vs work program of US$8- 10m. It did not fracture more than expected per se. The fracture grew through the frac barrier in the middle HRZ – that was neither expected nor unexpected – it as an uncertainty. We now know that we can frac through this layer – what remains unknown is whether the fracture through this layer will remain in communication across the layer over time. IW#2 flowback results next year will shed light on this and that will impact which zone any horizontal is located.

Why after 6months of imbibe & pressure build up are they going straight to artificial lift? Could they just not use the 6 month imbibe & pressure build to re flow the well? Thus saving money DW We will flow until the pressure gets to the ideal level for artificial lift based on the modelling. The jury is out as to whether imbibition was effective. Once we open up Ice2v, are we likely to be pumping oil out of it for the rest of summer?" DW It is possible.

29. What point in the advancement of the unconventional prospects is seen as prudent to explore a 'farm-in' arrangement, to speed up progress, reduce need for funding from the market, share risk etc. ? DW A probable year, a probable number of drills, a probable point in the spend curve, …. Any of those are a reasonable way of adding to our understanding. Any time that the right deal can be struck that maximises shareholder value. Typically this is post 3D seismic for the conventional and post decent flow test from IW#2 for the unconventional. We have come close on both prior to these events – which is a testament to the quality of the project but ultimately we did not close a deal.

35. We know this territory is virgin territory and the flow rate on the unconventional is proving to be challenging, but are the BoD confident that they will achieve commercial flow rates in 2018 and if not, can they elaborate on what the "sticking points" are that they are trying to solve - in layman's terms. Thanks. We remain confident as per previous guidance. The sticking points are now deliverability of the reservoir – have we effectively stimulated a large volume of rock or created ‘planar’ fracs? Can we get effective connectivity to the reservoir itself, where the pore throats in the hydrocarbon hosted pore spaces deliver oil to the created fractures? Will the fracture remain open over time? Have significant ‘fines’ been created that will clog the fractures? This is a subset but gives a flavour of some of the outstanding risks/questions.

Q36: what are your thoughts on flow of HC after swabbing has finished, (how soon if at all would you expect a flow?) hours,days,weeks? Why is swabbing so expensive, what are time scales, will the narrower Gage tubing stop in place after flow or will it be removed?...A: We are not planning on swabbing – gas lift is the current plan as it is the most effective at both lifting fluid and reducing bottom hole pressure. Swabbing is the least expensive option – but also the least effective.

Dave did mentioned that eventually our shares will be taken away from traders into LTH and eventually institutions and far bigger holders...