Member Info for LeMajor

Is this not typical of the USA legal system. The lawyers will take more money out of this than SOA.
By the time it ends the governor will be out of office and retired to Florida - and the oil companies will be offered 50c on the dollar.

Q: Did the proximity of Icewine1 affect the quality of the data collected or the flow rate achieved?

I should have added that the main area of 88e's and BEX's leases are right over the HRZ "hot spots". The conventional prospects within our leases are incidental (icing on the cake). There is no doubt in my mind that the HRZ is the main chance, nor is there doubt that the conventional deposits will be easier to prove and exploit.
The main concern with farming in or out is having to give away the baby (HRZ) with the bath water (conv) - I think these other conventional opportunities with Horseshoe and Yukon Gold, gives DW the option to trade away from the HRZ lease area. and potentially give us funding without the dilutionary effect (direct or indirect).

You misunderstand - the HRZ is the primary project because it is many times bigger than the conventional in its potential.
The plan is to keep trying to achieve a commercial flow rate, and then repeat it many times over with more wells.
We do not know what flow rate we can achieve at the FB location, and requires experimentation at this and/or other locations, using various techniques and tools until we can prove a good flow rate.
We have no idea when the flow rate (80-100 bbl/day) will be achieved - we all (inc DW) hope it will be "next time" but all we can do is keep experimenting and trying to understand the geology, the physics and the chemistry until the penny drops (finding the code).
We cannot plan a flow rate, we can only plan the extraction using some specific techniques. Having done that we can only measure the flow rate and decide whether it is good enough to be commercial - if not, we have to come up with new techniques and then plan another drilling/fracture/extraction and hope it will give us an improved flow rate next time, else rinse and repeat until it does.
Some PI's on this list have too simplistic a view and think oil exploration is a simple as a Mary Berry victoria sponge - but if she started off with 3 crocodile eggs, four pints of camel milk, a tub of pork dripping, rice flour and a bee hive, she might be able to produce something close to a victoria sponge, but would have to re-think the recipe a few times - tasting and adjusting her techniques as she goes.
As PB said, we do not fail, we simply prove that some options do not work as well as others yet to be tried (I paraphrased).

"Make no mistake the plan was for it to flow" - that's a hope, not a plan.
It's like saying, we've decided to have kids, the plan is twin girls !
Science ain't like that, it is about discovery not manufacture.
As for the HRZ being the primary target - of course it is. Once we have discovered how to get the oil to come out of the shale, we should have about 4 times more oil than what we believe to be conventional prospects. In round numbers that's 2Bn barrels conventional vs 8Bn barrels shale oil. Meanwhile, we pursue both.

You rightly ask "who instructs him" as he clearly does not understand what he's typed.
Permafrost is a permanent state - so why is it responsible for allowing only 5 months work each year?
Most of the drilling in Alaska happens during the 7 frozen months - because equipment can be delivered to site without vehicles sinking in the marshland. Hydraulic Fraccing requires lots of water to be pumped down a hole - it is easier to do this in the 5 summer months as water from lakes and rivers can't be pumped when it's frozen.
88e has conventional targets and shale targets - so summer and winter projects abound.

I think Horseshoe is an oil sands play, but not sure whether this technology can be used in the same context (5000 feet below ground) - however a 99% extraction rate seems pretty good - and if they develop a variant of the process suitable on the NS, we'll be laughing all the way to the bank.
https://oilprice.com/Energy/Energy-General/BREAKING-New-Tech-Just-Unlocked-A-Trillion-Barrels-Of-Oil.html?utm_source=Sir%20Isaac&utm_campaign=Petroteq

HTH the rebates were offered by SoA in order to encourage small companies to explore for oil. The large companies (for whom rebates were just petty cash) were just "land banking" rather than generating royalties for SoA.
The rebates were for the benefit of SoA by providing the incentives to small outfits like 88e & Bex.
Once proven the small/medium size producers will come into play or will force the Big Boys to come out from under their rocks (FOMO works for them too).

MikeMike, I do recall that SOA will repay 90% if a company wants early settlement (so SOA keeps 10%). but if a company decides to "wait it out" SOA are still obliged to pay 100% of what was agreed. So if a company is owed a million, or is nearing bankruptcy, it might be worth taking the deal and moving on - if owed $20m, that's a different ball game..

HTH, I think GB & Otto have been hampered because they were waiting on SoA to provide an immediate cash refund as soon as they submitted their rebate claim. So whether they did not proceed because they could not afford to, or whether they halted progress to pressurise SoA into coughing up the cash, I have no idea.
However they have now secured partners, so although they will have reduced their "take" they no longer have to find 100% of the cost. I believe they have an option to buy back a larger stake at the end of the drilling project, if they have the cash to do so.
This idea of taking on partners to move a campaign more quickly might even catch on.

Nutsy, what we are owed is covered by a "bridging loan" - so if SoA repay 50%, 75% or 100% of what they owe us, it goes directly to the bank - so it makes very little difference to our day to day operations.
My understanding is that when the final rebate installment is in, if there is anything left over from the Bank charges, then we'll be paid the surplus. I think the loan facility is slightly less than the rebate we are due - so we are more likely to have a surplus than a deficit - enough to have a Christmas party on the house, maybe.

Pat, at least with 4 drilling prospects, 3d analysis, and JV deals to negotiate they are not watching Wimbledon every day. The salaries are paying for on-going effort, and apart from some office equipment and a pressure valve at the top of Icewine2, all other equipment has been taken away by the contractors. The next quarterly report is due within 10 days or so - so you will see what current finances are like in no time flat - hopefully, it will give a bit of backbone to the invertebrates, and settle things down - meanwhile beware the tree shakes.

Someone mentioned BoJo has applied for the role at 88e. He has cited his journalistic skills and his ability to influence the cabinet amongst his attributes. Personally, I wold not trust him to be left in a room with a sink unit, let alone a cabinet.

No-one can say you're not a sticker, Jaffa. Bought in just before we ceased to be a Tangerine, but a lot more skin now.
2019 will be a good year, I'm sure - but 2020 could be a sell-out (no reason why we can't have a bit of both) - but will not hold my breath, these things often take a bit longer..

Paulio, just give it a rest - you are out of your depth.
Take a few days off and catch up on the football or some fast paced computer game.
I'm waiting for 6p but the secret is not to worry about how long it takes. You don't have the patience for this game so go for something which your adrenal glands will appreciate.
Actually I'm waiting for much more than 6p but promised the wife a new car, and that is the point at which I'll take a slice.
As for a Jaffa: A fruit which does not produce seed, is the definition I remember.

Brom, dare I say that the comment from Somm, was a bit "over the top".
As we know, theye are many comfirmation-type announcements due between now and the end of year relating to JV's, programme adjustments, Yukon Gold, 3D results and maybe an "autumnal visit". None will cause a spectacular rise in SP (IMHO) but they will give us confidence that the plan is moving in the predicted direction.
The "light the blue touchpaper" event comes in December when the Ice Roads kick-off, and by the time Somm returns, the trenches will already have been filled-in.
We'll have results from 3 conventional completions by then, and hopefully a nice chunk of cash in the bank for 2 more years exploration (unless we get taken out before).

I think the guys at Bex are not short of a few quid, if they put up the cash, I'd think DW would be happy to organise a rush job and maybe adjust the royalties that result - but 88e's cash is already earmarked for the next 12 months on the better understood conventional plays.

I think Bazinski wanted to go horizontal at first, but his speciality was finding the stuff, not getting it out of the ground.
Hindsight is a wonderful thing, but we are where we are. I guess the HRZ could be tackled this year if the JV partner wants to go for it, but my money will be on next year, possibly 2020. Then again, if it does not happen in or before 2020, we will have some "cash-in-bank" by then, so may decide to go-it-alone.

It's been a bit of a coin flip as to which way the SP will go on news at present - I thought the Horseshoe project more than outweighed the IW2 project as it's likely to bring cash to our door in much greater abundance - but clearly it did not inspire the investors with short term ambitions. However with several consecutive "News Dips" it must be time for the pendulum to swing the other way soon. I suspect 3D will do little to change the disposition of most investors - so no point in DW releasing it until it has been used to nail down a JV partnership - so I'm guessing we'll get news on both at the same time. Interest does tend to fall off in July/Aug so now is the time to take up the slack.

https://www.energy-pedia.com/news/usa/88-energy-provides-update-on-testing-at-the-icewine-2-well-onshore-north-slope-of-alaska-174033