Member Info for Galicia

88 and Monitor agree to remove stage 2 and 3 of the agreement, these were where 88 was going to fund operations in exchange for 25% more lease ownership. This frees up working interest so Monitor can look for another JV partner while 88 keeps its 20% interest. It greatly helps 88, the only way they were funding the wells was going to be a couple of capital raises.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03088610-6A1324894&v=undefined

That’s exactly my point, lots of renewed interest in Alaska, if any of it was directed towards Phoenix why would they extend Burgundy.

Augusta and Namibia look way more promising, there is nothing wrong about moving on and making those the focus.

I was referring to PANR’s search for a JV partner for Aphun, which shares the same fields as Phoenix. They spent 2 years looking before deciding to move forward alone. They should find one for Kodiak.

Franklin Bluffs is not getting drilled without the money from the listing, it’s not a catalyst.

Extending Burgundy was 88s only option, PANR has been fruitless in their JV search so it’s unlikely there is another partner to replace Burgundy. 88 cannot dilute to fund Phoenix because they need to dilute to fund Namibia.

That doesn’t mean it’s the wrong decision, Augusta is a much more promising area than Phoenix.

The delay is not the SEC IMO, they have completed two rounds of questions, that means there is likely 1 or 2 more rounds left. That could easily be done in a month and listing could follow 2 weeks later, they are waiting on a catalyst. This is also why they built in a 6 month extension option in case they don’t get that catalyst.

Unless burgundy found private investors I would expect that 88 gives them another extension. Burgundy filed confidentiality but they are required to make the documents public 15 days before the roadshow or the IPO date if they skip the roadshow. So as of today the earliest they could IPO is May 1st but I can’t see them skipping the roadshow.

PANR is farming out. The JV partner is farming in.

PANR will be giving away part of its working interest in exchange for a JV to provide money or donate labor for X number of wells.

A year or two ago Hobbs said they could sell 50% interest in Aphun for the $300M needed. After the 1.5 failed wells not sure I would expect anything better.

That site has been around a while, at least since March. I’ve been checking it regularly cause the menu at the top right says “new website coming soon” but nothing has changed since it launched.

Correct about the NPRA. On the last page of the 11/20 RNS about the new leases 88 said they relinquished the peregrine and umiat leases.

The Gas Sales Precedent Agreement is like a handshake deal. It is non-binding so either side can walk away and normally they need to be renewed annually. It basically outlines the terms and conditions that will be in some future contract.

To Brom's point the Franklin Bluffs Pad is owned by the state of Alaska, 88 only owns the mineral rights. This isn't the first time the pad has been used for other purposes while 88 has owned the rights. I believe in 2020 and 2021 it was used by a company working on the Dalton highway.

If 88 was making any kind of agreement they would have to announce it on the ASX and if 88 was supplying the gas we would see permit applications for that, although I do not see any way 88 would be ready to deliver gas by the end of this year.

The application also says this is temporary, a proof of concept that if successful will lead them to developing a larger operation at a new site. Stax isn't going to be drilling a new well for gas just for a POC.

PANR has an agreement to provide up to 500mmcf per day, AGDC is estimating central Alaska needs just over 200 mmcfd. So not exclusive but PANR can meet the whole need and then some, the agreement covers like 20 years too. 88 if going commercial would have to find a buyer for their gas at the end of the pipeline, which in phase 1 would probably require trucking it somewhere which is going to hurt the economics.

That being said the GSPA is more like the pre-contract. These typically renew annually and either side can walk away at the renewal. I’m not celebrating until the full supplier agreement is in place. Might also be part of why the market, in terms of share price, is lagging the enthusiasm of the message boards. Hard to see AGDC ruffling any feathers though, Alaska will want the revenue from PANRs oil as well.

Extending the deadline should have been expected, 88 needs capital not more working interest (as a shareholder you want more WI but the company needs cash to advance the projects). Whether Burgundy paid or not was going to be irrelevant to the markets. The $3M is probably about a tenth of what they need for the production flow test.

Burgundy is trying to do a public listing, if they do then the Burgundy insiders will all get paid and at this point they have invested 10s of millions, so it makes sense for them to continue. I would expect the deadline to get extended again.

Stick picking is when they wait for the ice to melt and go back and pick up any debris left over from the seasons work

A big part of the cause of the low voter turnout is none of the OTC shareholders in the US can vote, the OTC holders have a huge portion of the OS. Not regulatory or anything, the process is just impossible.

Sorry Taximan, I am an 88 shareholder, have been for years, I swing trade it but also hold a small portion as a lottery play (and by small I mean I still meet RedIrons £1000 requirement to be able to comment on 88).

88 believes the Longhorn well upgrades and new wells will increase production to 600-650 gross BOE per day. Current production is 328 gross BOE which netted 88 $713,000. Doubling production will put them at $5.7M annually, not enough to even cover operating expenses and that is not until 2025. They said they expect it to generate $3M in 2024. (All from the latest investor presentation and annual report)

I did just see in the latest investor presentation they have 5 more workovers and 20 new possible wells yet to do in the coming years. It takes about $2-$3M USD to drill a well in the Permian basin so it is hard to see Longhorn doing more than reinvesting in itself for the next few years. That is not a bad thing at all though.

Both companies are going to dilute and both are going to continue in a downtrend until they resolve the larger outstanding questions. This is how long shot exploration companies operate, this isn't Conoco Phillips we are talking about.

Longhorn generated $713,000 last quarter ($2.9M a year). Company operating expenses were almost $6M last year, it is not even covering that at the moment. (these numbers come from the latest quarterly and annual reports)

88 is also spending around $8-10M a year on well upgrades and new wells for Longhorn so, for now, it is losing money. They also took out a $5M line of credit to pay for part of this years upgrades so Longhorn wont generate anything in 2024 assuming they pay that back this year.

Eventually they will have made all the upgrades though so it should be producing profit not just revenue, 88 has not providing long term guidance on Longhorn though so we do not know how many more upgrades and new wells they will need past this year.

They will need:

- At least $10M/year for Namibia for the next two years ( their share of exploration expenses plus the $7.5M each for the exploration wells 1 and 2, they can skip the 7.5M but how would that make sense).

- $3.5M for the annual lease fees in Alaska

- $6M for annual operating costs, salaries and such

So conservatively 88 needs $11-20M a year for the next two years assuming they do nothing in Alaska until there is a partner, I might dive deeper later.

Oh I've been misinformed then! People on this board keep bringing up PANRs debt like it is the end of the company.

I was jumping to the point you made without saying it. PANRs current debt is dilutive because they cannot pay the quarterlies without diluting shares. 88 would be in the same position and PANR would be in further if they financed production with a loan until the work is actually generating enough revenue to make the payments.

Taxi - They can call a special meeting for shareholders to approve the shares that were issued as a result of the capital raise, which means those shares do not count against the 15% and they can do another raise. 88 has done this or had them ratified at the AGM every time they have done a capital raise. For example, this is what they did this past January for the raise in 2023. This does not mean for sure they will do a raise but with their financial situation they have to maintain the ability to do raises at any given time for unforeseen expenses, like the flow test that just ran over budget which forced them into doing that latest raise.

I have bets placed on both 88 and PANR, these are not investments, they are lottery plays with a small chance of succeeding. Both are going to dilute, whether that is doing a raise, giving up working interest to a JV or taking on a massive loan all dilute our interest.

Taxi - They can hold a general meeting to vote on consolidation at any time, so there is no guarantee it wont happen before 2025. But my guess is they wont do it until their advisors believe a capital raise will not fill.

88 will almost certainly hold a special meeting in the summer/fall prior to the release of the final analysis of the flow test data for shareholders to ratify the latest capital raise, they have had shareholders vote on this every capital raise they have done. This would be an opportunity for them to have the consolidation vote as well.

Rpj8438

They always say "they are looking forward to....". They said it in some variation in every PR leading into the Merlin 2 results. Personally I was more of a fan of the "transformational" quote they used.

We are all in this for the results at this point, when they come they come.