The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Hi WAaussie Fri 16:50
Sorry for the delayed response, but he we go.
Responding to "Do you ever think we do anything that creates shareholder value in the long term? It appears quite weak based on crap they promised months ago.
WAaussie, that all depends what you consider long term mate; 6 weeks, 6 months or 6 years.
I have been looking back through 6 years of Investor Updates from 2015, starting with this -
2015 - Icewine #1 exploration well spud October 22, 2015 - targeting billion-barrel potential shale oil prize ;
right through to this last year -
2020 - Merger of 88 Energy and XCD Energy creates a substantially enhanced Alaska focussed oil exploration and appraisal company.
Alaska North Slope: Four Farm-outs Underway Operator on Multiple World Class Assets
Project Peregrine: Recent addition – drilling planned early 2021
• Adds ~195,000 highly prospective exploration acres in NPR-A region of the North Slope of Alaska
• Large prospective resource, located on trend to recent discoveries
• Permitting commenced and farm-out discussions underway for drilling of two wells in 1H2021
Project Icewine: Charlie-1 Condensate Discovery / Further Farm-out to Commence
• Condensate discovery in Torok Fm announced April 2020, oil pay interpreted in Seabee Fm
• Excellent oil saturations indicated by core analysis in Seabee and Torok in Charlie-1
• Preferred drilling location away from Charlie-1 – more oily, with better reservoir quality
• Farm-out process to be relaunched with integration of positive Charlie-1 data
Yukon Leases: Existing Discovery – Interpretation Complete on 3D seismic (2018)
• ~90 million barrels mean prospective oil resource (100% 88E)
• Negotiations underway with nearby resource owners to aggregate and farm-out
Icewine: HRZ Liquids Rich Resource Play
• De-risked by three wells: Icewine#1, Icewine#2 and Charlie#1
• Results from Charlie-1 analysis of HRZ expected to facilitate farm-out process
The cycle is:- obtain somewhere or something to explore, explore it until you find something worthwhile & then monetize it.
Personally, I think we have done that to the point where we have various projects on the cusp of monetization.
We haven't drilled many holes but have been really close to discovery on 3 from 6 , if I am not mistaken.
Not many fast results in this High Risk/High Reward industry, but I do believe the company have brought us a long way in a relatively short time period & not much further to go.
Have a read of the Chairman's Letter on Page 3 from the Annual Report, December 2014, with a new company name & a new set of board members including one, D. Wall, ready to do business on the North Slope.
https://www.asx.com.au/asxpdf/20150330/pdf/42xly5vvf6dbn3.pdf
I think we are doing OK WAaussie but I, like you, get frustrated at the timing of announcements sometimes, but it is what it is & think (hope) we are going to be pleasantly surprised.
GLA keefy
Hi Rab79 16:31,
Rab79,
Either this whole investment is One Big Charade or it is something really special.
IMHO
Independent Resource Assessment of Merlin & Harrier put the mean value at over 1 Billion Barrels.
We also have Umiat, which does not form part of the deal, that has flow tested oil on 2 different occasions spanning 50 years.
Following the $14M cash payment, the deal offers up a maximum of $22.5M, for ~10% of 2P reserves up to 250 million barrels, which equates to ~10 cents/barrel (Not inc $14M), within 3 years. This is only on Proven & Probable reserves (2P).
We were within decreasing days of a discovery at Merlin & given the original timetable & no halts, we perhaps would have had the time to do a side-track drill when we hit hole deterioration at TD & prove the discovery. Who knows?
The initial results & positive responses from DW & AG, lead me to think we have hit the spot at the 1st attempt at Merlin. It says in the ANN that communication was established with the reservoir in the deepest zone of interest, before the power & tooling issue occurred.
Comparing Pikka after 12 plus wells with little old us with 2 + 1 drills @ Icewine, 1 @ Winx & 1 @ Peregrine, plus 2 astute purchases @ Yukon & Umiat, both with proven resources, is not really comparing like with like. Apart from Icewine 1 & 2, we have managed to secure farmout or JV partnerships to fund 1 hole per season drilling. What does that say about what our potential is?
Looking at Peregrine / Umiat right now, why wouldn’t an Oil Major want that piece of action in their portfolio, even if they didn’t touch it for 5 or 6 years?
I remain extremely optimistic about this next stage of our adventure.
Holding firm.
keefy
Hi Rab79 20:45
$14m plus
By July 2024 APDC will be paid US$10m
IF
• gross 2P reserves = 100 million barrels
+ US$12.50m IF
• gross 2P reserves >100 million barrels, <=250 million barrels
plus
o 10% of gross sale if >49% sold within 24 months
AND
o 1.5% overriding royalty interest on all future production.
That's how I interpret the deal. Open to correction
Appears to be a decent deal to all concerned.
Plenty to be bullish about, the very fact that they are talking 2P volumes of this magnitude within a 3 year window.
GLA keefy
6th April Details COMMUNICATION WAS ESTABLISHED WITH THE RESERVOIR
The first run of the wireline program included a standard triple combination log with nuclear magnetic resonance (“NMR”). These tools are designed to identify potential reservoir and resistivity (elevated resistivity is an indication of hydrocarbon saturation), as well as provide an estimate of the mobility of the fluid present.
Multiple prospective zones were identified, consistent with the shows and logs obtained whilst drilling, and the NMR tool indicated good mobility across most of these zones.
The second run of the program was designed to take samples across these zones. Initial observations indicated the presence of an oil signature in the fluid using an optical fingerprint sensor in the downhole sampling tool, AFTER COMMUNICATION WAS ESTABLISHED WITH THE RESERVOIR IN THE DEEPEST ZONE OF INTEREST.
Slugging¹ of hydrocarbon and water then occurred, which is often a precursor to hydrocarbon flow from the RESERVOIR, however; a power outage due to equipment failure necessitated pulling out of the hole for repairs, prior to any sample being obtained. After repairs were completed, the run back in hole encountered several sticky sections, indicating poor hole condition so a clean out run was undertaken.
Re-entry with the sampling tool was then executed to move to the LOWEST zone for testing but GOOD COMMUNICATION WAS NOT ABLE TO BE RE-ESTABLISHED WITH THE RESERVOIR DESPITE OBSERVATION OF A SIMILAR HYDROCARBON SIGNATURE on the optical fingerprint sensor. The time the hole had been open and consequent potential formation damage may have contributed to this issue.
A decision was made to move to the next shallowest prospective zone, which had exhibited good oil shows and petrophysical characteristics, but wellbore condition issues prevented a test as the tool became stuck. The tool was freed but the risk of returning to that zone was deemed too high. Not being able to sample THESE TWO MOST PROSPECTIVE ZONES, does not preclude a discovery; however, analysis of sidewall cores and potentially further drilling may be required for confirmation.
SIGNIFICANTLY, ONE OF THESE ZONES is considered to be A NEW PROSPECTIVE HORIZON WITHIN THE NANUSHUK FORMATION, THAT MAY BE WHOLLY WITHIN THE PROJECT PEREGRINE ACREAGE AND WAS NOT ONE OF THE PRE-DRILL TARGETS. THE OTHER ZONE IS INTERPRETED TO BE SHARED WITH ONE OF THE ZONES IN THE HARRIER PROSPECT, to the north of Merlin.
Further work, integrating the results from logging with the seismic, is required to map / re-map the volumetric potential of these zones. Several samples were taken in zones interpreted to be less prospective on the way out of the hole, all of which contained low saturations of hydrocarbons, which will now be sent to a laboratory for testing. The presence of hydrocarbons in these zones is considered encouraging for regional prospectivity.
Is the 1000 foot potential, directly above the reservoir?
keefy
New Horizons
The company also was pleased about finding a “new prospective horizon” in the Nanushuk formation that may all be within its Peregrine acreage and was not one of the pre-drill targets in Merlin 1.
But Wall did say: “Particularly encouraging is the apparent presence of oil in a zone that has not previously been targeted in NPR-A. Whilst the potential volumetric size of this zone is not yet known - as it was not a mapped target in Merlin-1 - the formation could be extensive based on initial interpretation.”
Who said this?
“Another interesting fact is that all these fields were found by accident while actually pursuing other plays and are predominately stratigraphic traps. Compared to the other places I have worked; the Slope is wide open with opportunities and lots and lots of running room.”
https://www.geoexpro.com/articles/2019/01/geologist-bill-armstrong
One solid Petroleum News source said HEunderstood the new interval might be 1,000 feet thick. No corroboration was provided by 88 Energy on April 6.
Who mentioned 1000 feet?
Kevin Frank, a geologist and section chief of the state Division of Oil and Gas’ resource evaluation team. “I think they (88 Energy) have done a good job,” Frank said, following a lengthy meeting with members of the division’s resource evaluation team. “They’ve collected well information from targets in the Nanushuk,” which is the hottest oil play on the North Slope because of Pikka, Willow and other recent substantial discoveries. “They found something they had not anticipated - a new prospective horizon in the Nanushuk formation that was not one of their pre-drill targets. It’s always nice to find something you hadn’t expected,” Frank pointed out. Was, what 88 Energy found, promising? “There is still uncertainty, but they have reduced it by getting some positive signs. I think it is encouraging - what they did get,” he said.
OR
Division of Oil and Gas Director Tom Stokes, his boss, endorsed his comments; “88 Energy has actively explored the North Slope for many years. It is encouraging to see the results they achieved during this winter’s drilling activities.”
Part 2 to Follow
Hi JofH 21:19,
they have his birth year as 1960. He graduated Western Australia Uni 1995. Unless he was a mature student, does add up IMO.
1970 could be nearer, making him 51 now! Certainly doesn't look 61.
I've looked previously for a DoB for DW but found nothing, only graduation date on his LinkedIn profile.
keefy
Hi moda 22:35,
Good spot buddy.
Interestingly, having watched that, I thought I would have a peek at this: https://m.youtube.com/watch?v=LFnF5MabqPo&feature=emb_rel_end
100 minutes duration but much interesting information relative to 88e (IMO) can be heard & seen between 20 - 80 minutes.
Definitely need a few of our SME's to have a look & voice an opinion if they would be so kind.
GLA keefy
Hi Brom 09:59,
a little supplement for 11'ss
Courtesy Shares Magazine: https://www.sharesmagazine.co.uk/news/market/lse20201204070001_3804093/Project-Peregrine-Farmout-Executed
Managing Director of 88 Energy, Dave Wall, stated: "Being able to secure a farmout deal with a high calibre partner on close to two for one deal terms in the current oil and gas environment is a major coup for our shareholders. This is especially true given the short time period in which it has been achieved as we only acquired Project Peregrine in July of this year.
APDC is a close cultural fit for our proposed future plans for Project Peregrine and it has been a pleasure to work with them to finalise the farm out deal within a tight timeframe. We look forward to potential success as we approach the imminent spud of Merlin-1 in February 2021."
About APDC: APDC is a special purpose investment vehicle organized for Project Peregrine. Its members are a consortium of private US entities managed by individuals that have extensive experience in oil and gas, including owning businesses that directly operate in the sector.
What is a special purpose investment vehicle?
A special purpose vehicle (SPV) is a subsidiary company that is formed to undertake a specific business purpose or activity. SPVs are commonly utilized in certain structured finance applications, such as asset securitization, joint ventures, property deals, or to isolate parent company assets, operations, or risks.
Courtesy of Investopedia:
https://www.investopedia.com/terms/s/spv.asp
keefy GLA
Hi Brom 13:36,
not just the single piece of info regarding Emerald but the string of her tweets & down the other various links. Just makes interesting reading & some stuff in there I had not seen before including this guy, who I have seen some of his tweets previously.
https://twitter.com/HarisRad88/status/1397335719664828418
All helps to try & understand & appraise new features.
keefy
Hi moda 06:17,
I think we have a lady Sherlock in our midst. Check out this thread of tweets from Katie who is trying to complete the 88e jigsaw
https://twitter.com/Thoughts_NJ
Enjoy & GLA
keefy
Supplementary articles: Courtesy of Michael Fitzsimmons
https://seekingalpha.com/article/4432146-why-biden-approved-conocophillips-willow-field-in-alaska-its-all-about-securing-the-taps
https://seekingalpha.com/article/4400621-conocophillips-ironically-biden-be-great-for-stock
Enjoy & GLA
keefy
Good Morning All. it could be a Good Day Today, depends whether you are half full or half empty.
$eeenNF OTC are seeing the positive side to latest releases from Joe B.
Apologies if the link has been used previously.
https://twitter.com/search?q=%24eeenf&cn=ZmxleGlibGVfcmVjcw%3D%3D&refsrc=email
As Usual Good Friends, GLA.
keefy
Hi rfarfa 16:47,
well supplemented buddy.
A ~10 year well life I feel could be most attractive. Who is the likeliest candidate?
Or maybe with a futuristic approach for their shareholders, 88e may be considering gas/hydrogen production.
Sell off current oil projects once proven & perhaps JV with a Gas major for 10 years. It keeps them in Alaska & in good books.
Just thinking(hoping) aloud.
GLA
keefy
Hi rfarfa 13:30,
thanks for that buddy , its been a while & tucked away at the bottom of 6th January 2021 Operations Update.
In-house analysis has commenced on various commercialisation options for the gas condensate
discovered in the Torok Formation by 88E’s Charlie-1 well in 2020.
The discovered resource comprises over 1 TCF of independently estimated gross mean prospective
gas as well as associated condensate. The commercialisation options include, but are not limited to,
possible local power generation, compressed natural gas as well as potential for conversion to hydrogen
using steam methane reforming (SMR) with carbon capture and storage (CCS) processes. It is expected that this
work will move to a formal feasibility stage during 2021.
In vogue "Green", right now & going forwards. The following phrase from the above section would auger really well if possible to achieve: -
"as well as potential for conversion to hydrogen", using steam methane reforming (SMR) with carbon capture and storage (CCS) processes.
This could be a Big Deal for the company.
keefy