RE: Funding27 Aug 2019 21:06
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
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