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I keep seeing this mentioned, so looked it up. Its found in Note 11 of the annual accounts.

The key points are that it is a 'potential liability', it does not say that cash is instantly payable, and it doesn't have to be cash at all, it could be paid in shares.

We can also assume from the past SP and shares in issue at the highest past SP that the MCap would need to be in excess of approx. £190m to trigger this clause. The MCap needed to trigger the potential liability could be far in excess of this figure. But even if its not, for us to get back to that MCap would no doubt require some good news, very possibly involving money coming in from a farm out, so it appears to be a bit of a non-issue to me.

From the accounts:

"(ii) On 29 May 2015, the Company received notification that the Moroccan Minister for Energy and Minister for Finance had executed the assignment document, finalising the divestment of the interests of DVM International SARL (“DVM”, 88 Energy’s subsidiary in Morocco) in the Tarfaya Offshore Block. A liability of the Company remains subject to the market capitalisation of 88 Energy reaching a determined level before September 2021 which would trigger a potential liability of the Company of US$3.4m in cash or 88 Energy stock. In the prior year, this amount was recognised as a contingent liability."

Thanks for posting the link. I listened over the weekend, and found it very helpful to understand the presentation slides better and what to expect going forward. It appears to me that the BoD have developed a new 'Plan A' since icewine2 was shut in, and that plan has multiple parts, but there are also other alternatives that they've given a lot of thought to. 'Plan A' sounds like it is: 1. A farmout to an oil major by end of the year for conventional - to include 3D over the remaing 75% of the acreage, a couple of test wells to start with, followed by more later on. This won't involve a huge cash payment to us at this stage, but the work program they're looking at will involve hundreds of million $ to be funded by the partner. 2. A separate farmout for unconventional next year, once further analysis is complete on icewine2 results to confirm their working theory on what happened. 3. Carry out the drill in the western blocks which is already funded. If successful then preference would be to look at going into production, alternatively sell to one of the neighbours if suitable interest and offers are on the table. 4. Assess Yukon gold further, with 3D results due in the next few months. Sounds like from the preliminary results there could be an upgrade in estimates coming.

Troajan, I’m sure they do, if we’d bought up Kabwe instead of working on hernic it could be fully up and running now with quite possibly much higher revenue and profits for similar development cost. But on the other hand, we’d have had to pay a lot more for Kabwe than we have now!

Let’s hope this is the start of a longer term trend for platinum, would be good with two more pgm revenue streams starting next year (assuming dcm platinum gets approval). But I am looking forward to Kabwe production to start, after which we won’t be so dependent on the prices of just one group of metals.

Couldn't agree more, another instance of misinformation. GLRs NOMAD and joint broker is now just their NOMAD with the remaining joint broker now the sole broker.

I’m hoping there’ll be something soon, I would have liked to go but have been too busy at the moment. Maybe next time.

I think I get the logic in that, it may not be as straight forward as just drilling horizontally. What the vertical test may have established is that a horizontal drill in the wrong place along the 128' section may not be successful either, which may explain why the estimated barrels have reduced for the unconventional. Hopefully the data collected shows where the horizontal drill should be for the best chance of success.

Supposing they had proceeded with the horizontal drill straight away, and it didn't work because they picked the wrong place. We'd probably be in a worse position than we are now.

It would be interesting that know the rough split for individual pgms we produce. Lonmins last quarterly update showed that while platinum has fallen since last year, their average basket price for pgms has actually risen, I guess largely due to the price rise for palladium.

I've had a look through the performance rights scheme, and it seems reasonable to me. It does give a generous reward if 88e is successful, but if we do achieve that success then I see it as fair that the person who gets us there has a good pay day. And if it all fails, then there are no performance rights, so its not as though something is being awarded for nothing.

I don't understand how the 3.6p SP ceiling has been arrived at. Taking the current price as around 1.2p for the first tranche, it would need to rise to an average of 2.4p over 60 days to activate the full amount. Now assuming the SP then just stops moving for a year after that rise, the 2nd tranche would then require a SP of 4.8p over 60 days to get the full amount, and on the same basis the 3rd tranche would require a SP of 9.6p. Therefore as I understand it a ceiling of 3.6p can only be based on an assumption that the SP will fall back after each tranche. It may do, no one knows for certain what will happen.

But the other parts of the scheme require proving reserves and production. Does anyone really believe that the SP will remain around these levels if we do prove up reserves and actually start producing oil?

Yes would be good to get some news soon. Update on Kabwe by the end of the month maybe, with hopefully news on the final design and confirmation that we do have gov approval for the changes to the plans. A quarterly update around mid October will show whether or not hernic has continued producing at a decent rate. Final results for the year end I'd expect around November time, which might tie in nicely with confirmation that the upgrades at DCM have been completed

Just an observation - Whether or not you view the share price as having been destroyed of course largely depends on your entry point. e.g. If you bought in on the spike post the tjate licence announcement believing the SP would just keep on rising you might have a different opinion to if you bought in at a much lower point.

I personally don't view the SP as having been destroyed, and I'm happy with the progress and reasonably near term prospects. Of course I'd like to see much quicker progress, but overall I see this as a better bet than most junior minors.

Good interview, sounds positive for the next 6 months with quite a few things happening. And yes he did say two more fine chrome plants, or rather that they expect two more to be on the cards following the first at DCM coming on stream in November. Perhaps that means the deals not quite finalised, but are close to being announced. Maybe one at Hernic? Would make sense if the new owners want a quick way to improve efficiency once they complete the purchase. But that would still leave one more at a new project which is as yet unknown.

Klueloss, the plan has changed somewhat. BMR's old plans for the plant look to have been torn up which were the basis for the original timescales set in the conditions, and new time scales are emerging, presumably for a bigger plant from the start. JLP have indicated that the government are in agreement, which would seem likely otherwise you'd think they'd be building something/anything to comply with the conditions. Still a lot of question marks on it, such as cost and what kind of capacity the plant will have, and I guess we'll find out on the 1st October if the government really have agreed to varying the conditions and that we still have the licence.

Or perhaps some of them are retried with not much else to do?

Mikesurt, will you be getting the Harley from the dealership in godalming, Surrey? It’s a long way to Kabwe from there, might need to take a packed lunch with you.

Wouldn’t be surprised to see mikesurt back again in the near future, with some new information uncovered by his crack team of investigators. Hopefully not long to go before some actual news.

The 2010 reference is of course the date for the UK Corporate Governance Code being published, which requires such committees. No relation to the date of the committee itself or any members thereof.

So, to quote Mikesurt "unless you cannot read...."

Just read through some of mikesurts posts on JLP over the past few weeks. Reading those compared to what he's saying today is the most amusing 10mins I've had for a while.

MVZ,

"When last did good news reverse the history of the share price carnage? If any RNS is released, based on past history, the share price will fall."

You will find the answer to that by checking the RNS history. You may not remember, as you always seem to be on a day off when these things happen, so as a quick recap on some of the recent good news:

6th Aug RNS - 16.41% rise
3rd Aug RNS - 18.24% rise
5th Apr RNS - 14.51% rise

https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/exchange-insight/news-analysis.html?fourWayKey=GB0031852162GBGBXASQ1

Perhaps he believes in the paperless office concept and uses his keyboard instead?