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There’s an interesting hypothetical question isn’t there? If IW2 doesn’t come off - how would you value 88e? Yukon Gold + conventional? What’s that worth? Less than current map? Gadget - I always try and think about 2 aspects - the fundamentals (IW2 + conventional + Yukon coupled with the price of oil) and the psychology of the market. Possibly naive, but right now the psychology of the market is skittish and negative towards 88e. I put this down to a) lack of understanding b) people derisking ahead of results (one in the hand is worth two in the bush and all that). The fundamentals are unchanged from this time last year, in fact they are improved given Yukon and are on the cusp of being derisked further. What we’re seeing play out here is simply appetite for risk IMHO. Those unwilling to take the risk are cashing out. Those willing to take the risk are sticking. Neither is right or wrong, just different strategies and psychologies.

Just to remind folk - 88e is not all about the unconventional. There are two events this month happening. The primary focus - getting IW2 to flow The lesser focused event - getting the 3D seismic analysis. It staggers me that so little attention is being given to the billion+ barrel conventional potential we have. I keep reading about companies getting excited about 20-40m barrels, and whilst I recognize we are early stage, let’s not underestimate the value.

I totally agree Z. We would have needed to raise 10s of millions of capital, been heavily in debt and been slow. Whilst emotionally letting go of the idea of millions of monthly revenue was difficult, I believe it was inevitablee I see ED, in hindsight, as a profit making very valuable �proof of concept�. Without it we would not be in a position to do it again in WD hopefully faster and more profitably this time round.

https://www.youtube.com/watch?v=znyroTnxf1Y

Hi Noodle, On your points 1 and 2 - I think this was always their plan as stated in the annual report below. Maybe they had hoped for more than 7.5%, but I don't think they have been forced to something different to their strategy for the project. "A 24-well drilling programme may cost in the region of US$120 million or more and the Group's primary objective for the third party funding will be for an investor or group of investors to fund a majority of the capital costs of the East Denver project, with the Group covering the remainder. This funding may be staged over multiple tranches, with Highlands paying for a larger share of initial wells and the project investors covering more or all of the capital costs of later tranches of wells once the first tranche "de-risks" the project. Additionally, the Group may engage more than one investor with varying levels of risk tolerance in order to use lower-cost capital on later stages of development once investors perceive lower risk levels as a result of potentially successful early drilling efforts."