Cenkos Research Note Summary12 Nov 2020 08:11
An independent resource estimate at Project Icewine has assigned 1.77
billion barrels of gross mean prospective resources to the prospects in the
vicinity of the Charlie-1 well (1.1bnbbls net to 88 Energy). Significantly,
1.4 billion barrels (889mmbbls net to 88 Energy) have been assigned to
the Seabee Formation, where 88 Energy encountered substantial net pay
and excellent oil saturations in the cores taken from this horizon during
the drilling of the Charlie-1 well. At Project Peregrine, after receiving
multiple bids, 88 Energy has selected a preferred bidder, with execution
of the farm-out expected in the next few weeks. Planning and permitting
remains on schedule for an initial exploration well at Project Peregrine in
late February 2021. Project Peregrine is located south of and on trend
with the ConocoPhillips Willow discovery to the north, with ERCE
Equipoise assigning 1.6 billion barrels of prospective resources across
three prospects. We update our valuation, setting our price target in line
with our Risked Exploration NAV (RENAV) at 2.8p, a 600% premium to the
current share price, and reiterate our BUY recommendation