Member Info for moneyhawk

I think that if they already know the FO has no chance of happening (i.e. all the interested parties have walked away) we would have had the announcement to say so. There isn't anything I can think of that would be more price sensitive information that has to be disclosed.

I'm hopeful of the same and unless we get an official announcement to say otherwise, have to assume that a farm out by the end of the month is still very achievable. When the AGM date was announced this week they must have already had a very good idea that Winx wouldn't flow. The AGM had to be called, but it could have been pushed back into May, and I doubt they would have committed to the April date without knowing they would be a position to set out a forward plan. The farmout is key to that forward plan, its plainly obvious we won't have the cash to really progress any of our prospects without a partner coming on board.

Good point LTI. It is a self imposed deadline, not something that we are bound to. I think should be treated more as guidance than an absolute date. If there is a major offering a great deal, but its not going to be sorted until after the end of this month I can't see DW closing the door on them.

Waiting until we know the terms of the farmout would be a better time to review where the company is going and what the forward plan is.

Personally I don't see a reason to panic, and bought a few more this morning. Very happy to have seen the trade go through at a better price than I had set as the limit.

Should we end up in a position in a few months and there is no conventional farmout, Yukon is looking doubtful, and the Baker Hughes analysis on the HRZ leads to a winx style RNS, then I'd have to change my opinion. But until then, I believe there is good reason to be hopeful.

Phrontist, your posts this morning are very different from the £3 a share predictions you were confidently making on Monday. Winx wasn't worth anything near that to us, maybe a few p per share if it was successful. Nothing else has changed between Monday and today.

It does rather look like they're leaving the interim's until the end of the month.

The negotiations will be confidential. It would signify a problem if we knew who was in the negotiations and what terms are being negotiated.

DW has made several announcements to suggest that there are parties who are interested and preparing bids. If there was no longer anything happening on the farm out and everyone had walked away it would be highly price sensitive information that would have to be disclosed without delay.

This time last year we had:
*No Winx
*No 3D
*Yukon
*Icewine HRZ
*Approx 1B bbls Icewine conventional
*Farmouts not started

Now we have
*Still no winx
*3D across Yukon and 25% of Icewine
*HRZ one step closer to be unlocked
*2.2B bbls Icewine conventional
*Farmout for conventional well underway, and HRZ farmout in motion.

Net result is that good progress has been made and Winx isn't that major a setback from where we were a year ago. Would have been better with it, but its not worked out. Hopefully the market will recognise sooner or later that its not a major factor compared to what else we have going on.

Agree Manwell, there's more involved in a farm out deal than most realise. And we're probably looking at a multiwell deal which is even more complicated to negotiate.

Posted before, its a lengthy read but a good indication of the many factors that have to be covered in the deal

https://scholar.smu.edu/cgi/viewcontent.cgi?referer=http://88ewiki.wikidot.com/drilling&httpsredir=1&article=2690&context=smulr

Conoco would be great, but there are others as well that could be just as likely and good for us.

Exxon and BP have a huge investment in Prudhoe Bay which has been producing for about 40 years. Something of the scale of Icewine could be very attractive with reducing reserves there and the facilities they've already got in place.

Exxon have also recently announced revised growth plans to increase earnings by 140% by 2025. Again, something of the scale of Icewine could be attractive to help achieve that target.

https://corporate.exxonmobil.com/news/newsroom/news-releases/2019/0306_exxonmobil-updates-growth-plans-significant-additional-upside-possible

Oilmajor, that's not what 88e have said. What has been said is:

"The level of interest and the quality of parties in the Project Icewine Conventional farm-out data-room was highly encouraging, with 88 Energy deciding in December 2018 to honour requests for an extension to the year-end deadline in order to maximise the number of bid ready parties, whilst also remaining within the logistical schedule necessary to drill multiple wells in the 2020 operating season"

The implication of the words being that more than one party has requested more time to submit a bid. Which is somewhat different to 88e delaying to attract more interest.

The line in the AGM resolution about potential production testing at winx is the same line from the last RI/placing. Its an example of what funds may be used for, along with other examples. Its means flow testing, not going into production. Obviously the flow testing at winx is no longer happening

On proactive investors here:

https://www.proactiveinvestors.co.uk/companies/news/216403/cantor-fitzgerald-keeps-buy-on-88-energy-despite-chopping-back-its-target-price-after-winx-1-disappointment-216403.html

The Cantor analysts said: “While a disappointing result after promising early signs during drilling, we would note that Winx only represented c16% and c5% of the net resource base across our RENAV and 88E’s wider portfolio.”

They added: “Focus will now shift to the proposed farm-out of the Icewine conventional portfolio, where a deal is targeted this quarter.”

The analysts said their target price cut reflects the removal of Winx from its valuation for 88 Energy."

So from that they appeared to be valuing a successful Winx at 1.7p.

Yep, winx is dead. Its possible that a different site will be identified using what they've learnt from this well. But funding will be an issue, not just for us but all the consortium partners.

I would be rather disappointed if we now committed more funds on a different winx well over prospects on our own leases.

Agree, it does look an over reaction, although not as bad as the other week. Over £25m lost off the Mcap for something that has probably cost us less than £4m.

Some positive news by the end of this week would be very welcome!

WAa, I think it'll work out less than $6m. $1.2m was our share of a performance bond, refundable if we drilled before 31st May, and abandoning early before flow-testing will have hopefully limited the cost.

lol.

Problem now with Winx is funding to do anything else. RMP look in a pretty dire position and unlikely to be able to contribute the same % share they did before, and both Otto and PANR have spending commitments on other projects. If we get cash from the farmout, it looks like that would be better spent on Icewine2H or a drill at Yukon.

So at least in the short term, I can't see anything else happening at winx.

l-a, what about the parrot?

At least we can move forward now without daily posts telling us that RMP is a better investment because they're going to get a much bigger % rise from Winx!

12.13 - "An extension till end Q1 was the maximum length of time."

According to who? Its DW's own deadline he set, no rules or regulations govern how long a company is allowed to give for negotiations as far as I'm aware.