Member Info for mikemike

Dubs

The IW2 vertical well will be the entry point for the horizontal drills, providing horizontal fracs for the fluids to flow. If there is no flow then yes there would be weather issues.

In the event of an flow which is warm as it is 130c in the kitchen then the oil will flow all winter without an issue same as happens with other producers on the NS such as BP.

There is the possibility subject to a farm out partner for a horizontal drill .

Question is will there be a farm out partner at this stage who wants to take the risk of a horizontal drill, gross cost 16m$?

Mi how do you know this, did you ask Tg?

I thought not

Just confirmed to the Tg that the financials of this project are in effect underwritten. With SEPCO!!! tack record This should give the TG all the confidence in Kibo that they need.

PPA & SML anyone??

and poop in the bush

kangaroos

I would have no issue if we actually gave up the full 642 acres of IW2 and a bit more to let an farm out partner take all the cost is proving up this part of the HRZ. We hold 300,000 acres of HRZ, so why not let the value get proved up.

One stipulation being full access to all data and log work, plus techniques used.

In saying that if we can get a %, then it would be rude not to take it!!:)

We can then focus on the conventional in the other 4 opportunities. The farmout of that would I think be very useful in supporting further attempts at the HRZ.

I am sure DW will let us know once he has more solid news re farm out partners.

Mickey,

''According to a friend of mine and ours. Still happy''

Yes, agreed, very much watch this space.

Yes i agree, the market will either attribute an accretive value to the intellectual property, which it should, or not which it shouldn't!!.

Excitement everyday from here on in.

I know we have seen a lot of speculation re the sp on a successful outcome I am assuming the 15p thought is based upon 300mw.

I wonder how much more intrinsic value will be added to Kibo with the PPA when applying the formula for success to MCIPP and BIPP.

Setting a floor after an initial spike will be most telling !!

AVB

DW is a winner

winners do not quit, quitters do not win.

I intend to be a winner too.

Kangaroos

I think you may be right. In addition the budget for the well was $1.5m. Could be the costs of taking it to completion may have been outside of what we can spend without the farm out for conventional coming in.

As Mickey says all is not lost and Dw plus the science and engineering guys are working out how many ways they need to skin this cat.

Dilution from farm out is not a concern, it is part of the journey of creaming the curve. Equity dilution outside of converting existing options would be a disappointment.

I am in for more as I suspect the next RNS will not add instant gratification for traders or the impatient.

AVB

Good morning all

Looking forward to the next RNS which should hopefully map out the route that Dw will take us.

Yes, the Q2 end of H1 report is due by end of July. I be surprised if that does not come sooner than later.

I suspect we are all interested in the financials and the forward guidance on costs.

Income from SOA rebates due, net 2m$, could be more. Plus Q4 options valued at $1m not far away from pricing if we get the 3d and farm out news for Q12019.

The gravel pad can support a Horizontal drill 365 days a year, so is not seasonal, or weather restricted. Just like to see an announcement covering this as well.

Traders trade, holders hold, each to their own, without either dictating to the other.

LTI then you need to go to wiki and look at the live shareholder presentations where this was covered. DYOR

Phrontist some have suggested re BEX getting out(which ever way)on posts today, I do not agree with them

Stalin

if we get no income from this but lose the cost burden of proving up which adds value to 88e then It will not be such a a bad thing, if we get to share all science and data from IW" going forward. After all the science and engineering at this point is premium.

Would I sacrifice such a small amount of income at this stage if I had nothing then the answer is no.

I am expecting far more from the two conventional wells in the west for farmout financials.

If a farm out partner takes this up sooner and completes the horizontals. The science and engineering may then be applied to the two wells in the west which may then go beyond the stacked plays into the HRZ.

I see IW2 as a very small but very costly stepping stone for 88e. Of course if it had l flowed this would not be the case.

Stalin I disagree

Mr market wants to see flow rate

Industry needs to know what it needs to do to get flow rate. Yes a flow would have helped but it will be the science and engineering that industry will want to see. The latest set of results or the IP may count for more than we realise. A horizontal well cost about 16m$ gross. I do not expect 88e will gain income from this. I expect they will agree to unrestricted sharing of science and data. Should the well then flow, knowledge is everything.

Tundra travel is a very narrow window

suggest you google Alaskan ice road and construction times. there is a wealth of info from the DOG(dept of government) Most tundra travel ends mid May. Rare to start travel before Dec1st and then in specified areas depending upon freezing point and depth of snow.

Moneyhawk

The speed in which they moved to announce they would not proceed but did not mention plug and abandon but did mention farm out is I believe a possible hint.

As long as IW2 horizontal gets proven it does not matter if 88e are involved or not.

The value of a successful Horizontal shale well will be the start of the curve which 88e can cream along the way. 88e is not giving up much, if anything at all, if the agreement is to share all the science and engineering that IW2 has to offer.

Or it will be next year for shale

Still a lot of work to be done on bringing the conventional farmouts to completion, they are already on the table.

Looking back at the January presentation and the recent reminder re farm out

I would not be surprised to find that the farmout deal is pretty much on and needs agreement to the intellectual property value in the tool kit.

As IW2 is already permitted would a farm out partner want to wait until next year?or start asap to get a positive result with oil flowing through the winter. Proving up part of the HRZ will be to 88e benefit.

I think this may be a case of watch this space!!, or, it is next year.

Monty888 that you and the usual suspects do not get it comes as no surprise. IW2 is not a duster or Plugged and abandoned.

I will help you along not that you deserve it

IW2 is

1/ already permitted for a Horizontal

2/ Has more science and engineering completed than ever before. The moment the Doyon Arctic Fox completed the drill. This well has been all about Science and Engineering and still is.

3/ Farm out for IW2 was already advised in the January corporate presentation. This will happen sooner than later.

4 A Farm in partner with IW2 642 acres and probably a few thousand more will be an attractive Farm out target. The resource is proven and the above ground support is perfect. In addition the intellectual property now in the tool kit will be of value in its own right.

Letting a farm out partner take IW2 on is what it was going to be all about at the end of the curve, just started a little early for smaller value with a very small part of the acreage. Then there is the Conventional to look forward to.

But hey Monty it is far easier to Fib about oil not being successful in Alaska in the winter when BP and others produce all year round:)) your speciality

Amateur!

''trying to become an oil producer'' testing for commercial flow is a technical production to place on any Horizontal drill. This is also designed to show flow and decline rates. How else do you value a shale play. ??

You will fall by your earlier comments