Member Info for moneyhawk

The current 88e board can be viewed here:

http://88energy.com/about-us/directors-management/

Including Dr Stephen Staley. Is someone with a PhD in Petroleum Geology and 34 years experience in the sector, including Conoco and BP, not a suitable geologist to have on the board of an oil exploration company?:

"Dr Stephen Staley ( Non-Executive Director, appointed 9 April 2014). Dr Staley has 34 years’ of management and technical experience in the European, African and Asian oil, gas and power sectors, including with Conoco and BP.

More recently Dr Staley was founding Managing Director of upstream start-ups Fastnet Oil & Gas plc and Independent Resources plc and a Non-Executive Director of Cove Energy plc. He is a Fellow of the Geological Society, holds a BSc (Hons.) in Geophysics from Edinburgh University, a PhD in Petroleum Geology from Sheffield University and an MBA from Warwick University."

Is someone with a PhD in Petroleum Geology and 34 years experience in the sector, including Conoco and BP, not a suitable geologist to have on the board?

I don't really see why all that information is needed or why it should be released to the market. Name of the laboratory used to examine the HRZ samples? Really? What on earth would this mean to most investors here? If anything. I think 88e probably releases too much information that isn't strictly necessary, and I believe that is down to DW understanding his main investor base wants regular information and to be kept informed of small details.

As for a geologist on the board, sure perhaps we could do with a new board member particularly after the sad news last year of Brent Villemarette. But isn't Dr Stanley at Geologist? From 88e's website:

"Dr Stephen Staley ( Non-Executive Director, appointed 9 April 2014). Dr Staley has 34 years’ of management and technical experience in the European, African and Asian oil, gas and power sectors, including with Conoco and BP.
More recently Dr Staley was founding Managing Director of upstream start-ups Fastnet Oil & Gas plc and Independent Resources plc and a Non-Executive Director of Cove Energy plc. He is a Fellow of the Geological Society, holds a BSc (Hons.) in Geophysics from Edinburgh University, a PhD in Petroleum Geology from Sheffield University and an MBA from Warwick University."

Agree Newanda, I don't think that DW would be talking about the HRZ farmout at the moment if he didn't have a pretty good idea what the final analysis is likely to show in a few weeks. Very positive. I think that once we have the conventional farmout sorted out (fingers crossed!), it will settle many doubts people may have about DWs credibility, and what he says about the HRZ will be taken a lot more seriously.

DW - "Usually at preferred bidder stage its a matter of weeks to close out."

Other updates:
- Winx, disappointing but not a write off
- HRZ, update probably late April, interest shown during the conventional farmout, but the data isn't ready yet.
- Yukon, Update in April.

My take on it is that having chosen a preferred bidder there is likely to already be a deal on the table that all parties are happy with and which outlines the key components, and now its a matter of agreeing exactly how the plan will work with all the necessary contract clauses to support it.

Difficult to say if this will stretch beyond Q1. I'm not really that concerned if it does, the most important information we now know is that we are in negotiations with a 'preferred bidder', which is a big step forward from just having people in the dataroom.

Planning for next season should help focus minds on both sides to get the deal finalised in time for that. A lot will need to be done, applying for permits, logistical planning, getting rigs and people etc etc. So it can't drag on indefinitely.

I also felt at the time of the AGM announcement that it may have signaled progress with the farmout. The question now is whether DW is confident going to the AGM with just negotiations underway, or is he expecting to have a deal finalised by then?

7.27 - Conrad, have you not read the RNS? If you're looking for a cheap entry point I'd suggest that now is the time. The horse hasn't bolted yet, but the stable door has been opened.

So we have the update as promised, and puts to bed a lot of the nonsense that's been posted here in the last few days. Also that the rumour created yesterday about Winx and a side track about to start is exactly what most thought it was, a complete fabrication by a desperate RMP ramper.

Re the Farmout - Confirmation that not only were parties interested in the farmout, but that bids were received and a preferred bidder has been selected.

So no deal finalised yet, but it looks very promising. It would be interesting to know just what the bidders were asked to submit. Presumably more than just their interest or how else would a preferred bidder be selected? So probably could have included $ amounts, number of drills and other exploration they're prepared to do, what their wider plans are and what experience/benefit they bring to the table.

It would also be reasonable to assume then that the negotiations now taking place are more to do with fine tuning the bidders proposal and agreeing timings/locations for the work program, rather than starting with a blank piece of paper. So the final deal may not be that far off. Maybe still within the Q1 timeframe, maybe not. But previous indications from DW is that he wants to stay within the logistical timeframe for the next drilling season.

I thought the china/sinopec speculation had some merit as an outside chance with the proposed Chinese investment in the Alaskan gas line project. But that project is far from certain now, and trump's trade war doesn't help if Chinese investment in us was ever likely.

Agree SA. If there was any chance of a sidetrack they would had said so, or at least said that further analysis is being carried out before a decision is made to plug and abandon.

Not really helpful, just looks like someone trying to limit their loses by tricking the gullible.

Looks like its this guy creating the rumour:

https://twitter.com/investsight

Complete nonsense imo. Was ramping the **** out of RMP up to the last RNS, claiming he has an uncle on the ground in Alaska updating him. And after the RNS tweeted this:

https://twitter.com/investsight/status/1105732283011612672

Their MCap has fallen to sub £4m, which probably reflects their cash position. Its not going to take much for some big % swings either way.

With all the statements made about the farm out there will in all probability be something happening in terms of bids and/or negotiation by now.

I think its reasonable to assume that a farm out agreement will take longer than 2 weeks to put together from scratch, so if there was absolutely no progress with no interest at all with then DW should have made the announcement by now to extend the Q1 guidance that has been given to the market.

Doesn't mean that it will definitely be finalised before the end of the month, but a good chance it is close.

Looks like MMs found all the panicking sellers yesterday.

Chinese involvement is a possibility, but if thats what we're waiting for we'll have to wait for the US-china trade dispute to be resolved. I can't see the Chinese government allowing their oil companies to commit to a large investment on US soil before that's resolved, and would possibly be using it as a bargaining chip at the trade talks.

So I'm hoping this isn't the case or it could be a long wait.

A good FO deal would include cash for our costs so far, commitment by the new partner to drill exploratory wells and 3D the rest of our acreage, and for us to be on a free carry for the work program agreed upon.

Likely the farmout deal will see about 70-75% go to the farmee, and I would think that will be in stages that specify how much % share the farmee earns for each stage. So the farmee will only earn their full share if all the stages are completed.

A reminder of a worthwhile petition to ban shorting on AIM

https://petition.parliament.uk/petitions/242399

Just checked, and the kitchen sink is fine, no sign of any leaks. But I can see a few trees shaking.

You really need to read beyond the opening bullet points in the quarterly report to interpret what it might mean.

This paragraph gives some further information:
"During the quarter, 88 Energy elected to accommodate requests for an extension to the year end deadline to the campaign to maximise the number of bid ready parties, whilst also honouring the logistical timeline to enable drilling of multiple wells in the 2020 operating season. Consequently, the Company is now targeting close of a deal in 1Q 2019"

The use of the word "requests" implies that more than one request was made. This could either mean one party making multiple requests, or more than one party requesting an extension.

The word "maximize" in this context could be taken as meaning to have more parties in a position to bid than would have been possible without extending the deadline.

What drills do you think we are going to do Welshy88?

All the drills penciled in are 'subject to farmout'. i.e. no farmout means no drills, and therefore no drilling cost.