The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Brom 16:09
Message from the Yukon
From 31st July Quarterly Report:
Yukon Acreage : Discussions underway with nearby resource owners to optimise the monetisation strategy of the acreage.
What does that mean you might ask?
It may mean just this:
Yukon Acreage • Discussions underway with nearby resource owners to develop means of producing an income from our own assets.
Brom, you may know better than me, but who are the resource owners?
This could be another rabbit out of the hat for DW. Hopefully in early September.
keefy
oops 15:58
88energy announcements link
http://88energy.com/announcements/
keefy
Brom 15:19
Hey budie, you ave sertainly turnd intwo the phont of oyl knoledge.
Tut, damm spill chocker.
Anyroad up, a solid figure on this board & you have my respect.
Suggesting the doom mongers & nay sayers take a look at 88e RNS & Announcements & don't just speed read the highlights but read them all right down to DW's signature.
There are going to be some pleasant surprises before year end
Hopefully the links work, back to 88energy.com/announcements
31/7/2019 Quarterly Activities Report & Cashflow
26/6/2019 Project Icewine Conventional Farmout Update
22/5/2019 Alaska Projects Update
18/4/2019 Quarterly Activities Report & Cashflow
15/4/2019 Results of Meeting
14/4/2019 Investor Presentation AGM April 2019
25/3/2019 RMP: Alaska Operations Update
19/3/2019 Alaska Projects Update
12/3/2019 RMP: Winx-1 Drilling Update
12/3/2019 Operations Update - Winx-1 Final Report
Still Holding & being tempted to Top Up .
keefy
ldr1s 11:07
from the RNS: Under the terms of the SPA, Premier will pay the full costs of an appraisal well, designated as
Charlie-1, up to a total of US$23 million to test the reservoir deliverability of the Malguk-1
discovery. The well will be drilled and tested in Q1 2020 with rig options having already been identified
and contracting negotiations underway. On successful completion of the work programme, Premier
will have the option to assume operator-ship.
If successful, why wouldn't they take up their option?
However, there is nothing stated about our ongoing working interest if that were to be the outcome.
Hope this helps.
keefy
NeverSatisfied 12:32
NS, please read the extract below your post, very slowly, respond if you wish, as to why you think DW & Team have come up short, IYO.
US$23M, Free Carry + further US$15M option for 50% of B or C.
Plus - if they exercise their rights to purchase, Charlie, we make money from each barrel harvested.
Your Key Words: 88e supposedly had multiple high class interested parties.
I find it very hard to believe that DW would not have accepted this deal with no cash if he has not got a plan for funds going forward.
After all, I thought the reason behind the farm out was not just for the future drilling but to secure some funding rather than going back to market. Hopefully he will surprise us soon.
Highlights 88 Energy has signed a Sale and Purchase Agreement (“SPA”) with Premier Oil Plc (“Premier”) whereby:
Premier will farm-in for a 60 per cent interest in Area A (also referred to as the Western Play Fairway) of the conventional Project Icewine acreage in the proven Alaska North Slope basin
88 Energy will retain a 30% working interest in Area A with the remaining 10% working interest held by Burgundy LLC.
Under the terms of the SPA, Premier will pay the full costs of an appraisal well, designated as Charlie-1, up to a total of US$23 MILLION to test the reservoir deliverability of the Malguk-1 discovery.
The well will be drilled and tested in Q1 2020 with rig options having already been identified and contracting negotiations underway.
On SUCCESSFUL completion of the work programme, Premier will have the OPTION TO ASSUME OPERATORSHIP.
ADDITIONAL DETAILS • Premier has an OPTION to earn 50% working interest in Area B - OR - C by SPENDING US$15m, if the Charlie-1 (Malguk-1 appraisal) well in Area A is successful
88 Energy to operate the Charlie-1 (Malguk-1 appraisal) well via its wholly owned Alaskan subsidiary, Accumulate Energy Alaska Inc
Dave Wall, commented “We are delighted to be partnering with a company of the technical calibre of Premier. Premier has a strong track record of delivering projects through to production and is an excellent addition to the Joint Venture. The deal itself strikes a GOOD BALANCE BETWEEN CULTURAL FIT, VALUE AND THE MEANINGFUL WORKING INTEREST RETAINED BY 88E FOR ITS SHAREHOLDERS.
The Charlie-1 well has been designed to test all of the prospective horizons identified in the Western Play Fairway, giving benefit usually only derived from a multi-well program.”
DAVE is not just pleased, He is DELIGHTED
Prospects and Leads identified from interpretation of modern 3D seismic acquired in 2018, 2D seismic acquired in 2015/2016 and legacy 2D seismic of varying vintages post 1980 across Project Icewine, which comprises 486,000** gross acres on the Central North Slope of Alaska.
88E is Operator of record at Project Icewine with a ~47% over the conventional play fairway where the prospects and leads have been mapped. 226,000 acres net to 88 Energy working interest (p
miloh 10:11
By the way
" The free drill"
Premier has the option to buy it back
So is it a free drill or an Indian Gift ?
If we get it for free & then they BUY it back.
Answers on a stamp please.
Don't waste time on your keypad.
keefy
still holding
Released Nov 07 2018
https://finfeed.com/small-caps/energy/88e-exploring-large-scale-multi-billion-barrel-oil-resources/
keefy
PerthOG 13:11
Just looking at that as your post came up. Sorry to interject Brom.
From a FinFeed Small Cap WebPage
Yukon leases maiden conventional resource: net mean prospective oil resource – 90 MMBO (100% 88E)
The Yukon 3D seismic, acquired by 88E in the first quarter of 2018, has been fast track processed, with mapping undertaken to assess the maiden prospective resource associated with three sand bodies identified on the leases.
The Cascade lead, has been upgraded to prospect, a Brookian Turbidite Fan Play, while additional prospectivity has been mapped within Staines Tongue Topset Play.
The Cascade Prospect is the largest of the sand bodies, containing ~92% of the preliminary mapped resource on the Yukon Leases. The Cascade prospect is interpreted to have been intersected in a downdip location by the vintage Yukon Gold-1 oil discovery well.
Yukon Gold-1 was drilled in 1993 and discovered two oil saturated sands in the Canning Formation with porosities exceeding 18%. Up until the 2016 commissioning of infrastructure at the nearby Point Thomson gas/condensate/oil field, an accumulation of this size would have been considered stranded. Internal modelling suggests that break-even development price is now less than US$40/bbl.
Next steps will involve generation of an inversion 3D volume to further delineate and de-risk current mapping. An update is planned for the next quarter.
Happy Reading Perth
keefy
smoking88 16:39
"However It would be nice to attack more than 1 drill this winter is what I was getting at ie maybe 2 JV's on 2 locations for 2020 I was just thinking out loud."
Thanks for your response & wouldn't it just be great if we could run a similar project to Winx JV &
know "exactly" where to drill.
Just so much about to happen & be enthusiastic about mate & I for one am full with anticipation not knowing what DW has up his sleeve for the next RNS in early September.
I remain completely optimistic & ready for the next few steps.
GLTA to all positive 88E'ers
keefy
smokin88 10:50
from your recent post; last sentence
"In 7 months time (March 2020 ) we may be in a different place all together I've read a few bits on Prem oil and I'm very happy with Dave's choice of JV partner. No cash upfront is a bit of a ball ache as it's going to be another 1 drill a winter again for 2020 unless there is other things to materialise in the coming months with Yukon etc. It would be nice to have a couple of drills going at the same time to help boost the SP this winter but only tome will tell.
From the RNS; section shown in UPPERCASE
88 Energy Managing Director, Dave Wall, commented “We are delighted to be partnering with a company of the technical calibre of Premier. Premier has a strong track record of delivering projects through to production and is an excellent addition to the Joint Venture. The deal itself strikes a good balance between cultural fit, value and the meaningful working interest retained by 88E for its shareholders. THE CHARLIE-1 WELL HAS BEEN DESIGNED TO TEST ALL OF THE PROSPECTIVE HORIZONS IDENTIFIED IN THE WESTERN PLAY FAIRWAY, GIVING BENEFIT USUALLY ONLY DERIVED FROM A MULTI-WELL PROGRAM.”
MULTI = More than one!
Why drill multiples if we can get what we need from ONE drill?
Folks really need to read the RNS's & announcements in full AND then, read them again, before posting on this BB
Still Holding
keefy
Bothwell 10:11
Based on what logic exactly Both?
Conventional Farm-out with Premier Oil?
Potential of Yukon & of course, HRZ Farm-out which has already started?
Non of us, new or LTH, old or young, have any idea of where this SP is going short term. NSWE.
As Brom would say, "We do not know what we do not know"
Just too many variables & unknowns at this time Both.
Just sit tight mate.
keefy
jiddy123 08:24
Too right Jid, every prospective PI should be forced to read this article.
Is the word "ASTUTE" powerful enough to describe what our mates Wall & Co have actually started to pull off here?
Even in the OilRush article, she refers to 50% of areas B & C, but right there in our RNS it quite plainly states 50% of B or C.
I can begin to understand why this FO has taken so long.
Onwards & Upwards.
keefy
V111JAS 21.09
I think Dave & the team have been rather astute in the handling of the entire Farm-out procedure. JMHO
but look & read:
small words but totally different meaning.
from your post:
have options of 50% over B and C and , so assuming a successful outcome (and remember BP proved the Oil was there ) Premier `only ` (!) have to demonstrate commercial flow rates . etc etc ....
Actually reads: from RNS
Additional Details • PREMIER HAS AN OPTION TO EARN 50% WORKING INTEREST IN AREA B OR C by spending US$15m, if the Charlie-1 (Malguk-1 appraisal) well in Area A is successful• 88 Energy to operate the Charlie-1 (Malguk-1 appraisal) well via its wholly owned Alaskan subsidiary, Accumulate Energy Alaska Inc • Standard completion documents have been agreed and are in the process of execution, including the Joint Operating Agreement and assignment forms • Permitting on track: amendments to key permits, associated with 2020 drilling, submitted
Get it? B or C. NOT B and C
Great post btw V111, that's why so many recommends.
GudLuk2All88E'ers
keefy
keefy