Member Info for Phrontist

09:03
Our esteemed MD does have controls on BoD initiated Capital Raising.
88Energy has a Standing Annual shareholder agreement to be able to issue up to 15% new shares in each Annual period.
This Capital Raise is about 10% implying another 5% is possible later in the year.
Phrontist

The proposal and hope is to sell 857 million shares raising £15.8 million (A$30 million equivalent)
This is 1.84p /share. A 10.3% discount to a 30 day volume weighted average.
Reasonable.
How is this process occurring? I am not sure.
But if ALL of the New Issue is to be taken up, I would expect the SP to be 1.8p at some point.
Phrontist

The company is free of past 'person difficulties' and now has the chance of moving forward with a strong board.
I hope all agree now, this is a well set up gold mining business in terms of staffing, resources, equipment and location.
Gold is over $1800/oz now and expected to gently rise into the coming years.
It is forecast to be $3500/oz during 2023 and $5000/oz during 2025.
These factors firmly suggest Petropavlovsk is a fabulous short, medium and long term investment.
Certainly worth 30p to 40p per share as we come into H2 2021.
And possibly 10 times those figures in a few years time.
ATB Phrontist

I still confer with SP = 220p because the company is so well established and proven with this South American mining business.
Also, steady work expanding into new areas will keep the gold and silver volumes steadily climbing.
A solid share to own for medium to long term.

ColonelDrake
It is likely to be Roman Abramovitch who has proven crafty in the way he has taken over at least one gold mining company into private hands last year.

HOC has been a well managed and strong mining business for donkey's years.
After recent accounts, I would say there is no chance of dropping.
Meaning, downside is NIL.
As pointed out below, the H2 2021 results are excellent and justify an SP of 220p
A good place to rest some money with justifiable 50% Upside and 0% Downside.
ATB P

We are into second half of 2021 and had no financial information.
Google Finance is still stuck on 2020 results.
Are there any 2021 targets and forecasts ??
Batm are good with technology to supply but a little backward using computer accounts. If they want a rising SP they have to demonstrate administration and accounting that is up with go-ahead NYSE and NASDAQ growth businesses.
P

I think England are about to play football, against emmm, 'the old enemy' ha ha.
Germany. I still remember the 1966 Final against Germany.
2:2 at Full Time.
Then, wham, 2 goals by England in Extra time.
We won 4:2
Since then played Germany 4 times at senior level, and England lost them all.
Within a few hours we will know who goes through to the Quarter Finals.
Phrontist

Ddraig
What I wrote is all my opinion.
Opinion is simply a persons thoughts.
As for facts, well DYOR.
Phrontist

rfarfa, early days of exploration, that later was the company we know as BP:
https://www.bp.com/en/global/corporate/who-we-are/our-history/first-oil.html
Phrontist

88E Positive:
Company owns leases over 4 oil rich regions of 440,000 net acres just south of Prudhoe Bay
The Merlin-1 Test Program is 25% done with rest within 3 months
The company has experience of Field Experience of 5 Drill Programs over 7 years
For new investors, 88E is a ‘fair risk’ between serious loss and substantial gain once a year!
Long term investors can still be sane if they only ‘bet’ a limited amount of their available money.
One season (2021/22?) a Commercial Find will give a 10-bagger or much better.
When BP started, it took until 7th Drill to strike oil, so 88E still have 2 Drill Programs in hand.
88E has at least 4 valid, sensible options for Farm Outs 2021/22 –
-South of Talitha, Heavenly-1, Side Drill Merlin-1, Harrier-1, Umiat, Yukon
Once one Option Commercially Flows, 88E can finance drilling the rest.
By / during September, 88E is bound to announce one or more Farm Outs.
The SP could still pass £1, but when?
88E has NO DEBT.
By any assessment and comparison, 88E is a fabulous place to be if you are young, rich, strong heart, prepared to gamble and lose.

88E Negative:
After 7 years, we have not managed a single Flow Test.
Oil Rich (coming second) does not mean Commercially Available (winner).
Charlie-1 Test Program was meant to be a few weeks but was ongoing for many months.
BoD are avoiding to say – Charlie-1 will not be a Commercial Well.
Merlin-1 suffered an ‘industrial accident’ giving 88E a smack of the amateur, considering $14m was spent on this.
Conveniently, two new oil lakes discovered in Mwerlin-1 but no evidence to confirm this.
Alaska weather only permits 4 or so months working on a Drill and Test program per year.
The ‘fair risk’ has been a substantial loss every year since 2014, start of the Icewine Program.
Many long term investors are bitter about many of the past events, in particular, Drill Programs are always in the ‘wrong place’.
SP tends to be at a ‘new low’ each successive summer.
88E NEEDS to raise money during the Summer to drive home decent Drill Programs 2021/22.
Which means Cash Raise anytime the SP ‘stabilises for a few weeks’.
Don’t kid yourself, to really motor, 88E needs much more cash in the bank.
The cynical person will think, Merlin-1 results are stretched out to ramp the Summer SP for a CR.
So many shares have been dished out by 88E BoD to financiers, sub-contractors and ‘staff’, a constant nagging SELL could prevent any serious rise until pre-drill 2022.
Level-2 shows 10 million BUY against 13 million SELL – but at what SP prices???

This has not been ‘pump and dump’. It is an underfunded AIM company trying to bite off more than it can chew.
Merger, Sell Part, Sell All are financially the best options.

Phrontist

Does shares at 0.025 mean:
A$ 0.025 = 2.5c
?

The next Peregrine drill will not be anywhere near Merlin-1.
Too much water, weak results so far.
But good indication of oil.... somewhere nearby.
Also we are obliged to have a 2022 drill on Umiat leases.
So, is Peregrine (XCD) history for a few years?
Was Umiat DW's Umiat purchase a stroke of brilliance?
US Navy found oil there, and follow on work confirmed this.
Meanwhile, I don't think the SP will drop below 1p, but it is possible. New investors late 2021 / early 2022, and holders, are likely to have multiple gains.
Phrontist

Spinefx

It is called 'discussing business strategy'

Think about this....

If the BoD announce the next FO Deal
(eg Kuparuk as PANR's Talitha-A well North of our Central North Slopes Area A)
then...a Capital Raise will be announced....SP drops....
and the usual annual pump and dump, with weak results of our drill program
OR
The BoD announce INTENTION TO SELL PEREGRINE/UMIAT
IMHO the SP will double overnight.....
On completion of a Sale, the SP could be 5 times the current 1.35p
88E will have cash (loads of cash) in the bank.....
Shareholders WILL RECEIVE and Capital Refund (like a large dividend)
AND we still own everything we had prior to buying XCD / PEREGRINE / UMIAT

Phrontist

The Presentation document today is 'nice' in the sense of a good summary of the position today.
88E is famous (with me anyway) for giving vague timescales to action commitments.
It is as though they lack experience in the tasks they are carrying out.
88E - learning on the job...7 years and counting....
The comment at the bottom of Page 6 is VERY interesting:
'Significant industry interest in the results of the Merlin-1 well'
What can this possibly mean?
First, I assume it does NOT refer to hacks and journalists.
Second, I assume it does not refer to similar companies to 88E (small O&G explorers with little money).
Third, the comment has no value unless the 'interest' is an organisation that is able to move our projects forward.
Fourth, they must have Alaska / Prudhoe Bay Region experience and/or presence.
Finally, we could list the number of qualifying companies on the fingers of one, maybe two, hands.
TIME IS MONEY
88E in its current state struggles to do one drill program a year.
This business needs 3 or 4 drill programs a year.
The Presentation document is suggesting Drill Program needs on between 5 and 8 sites.
88E is bursting with possibilities but ATM cannot firmly name even one for the coming season.
The BoD must make a serious effort to UNDERSTAND the place that 88E is in.
Permanently underfunded for the tasks ahead.
Recently we gave away (it seems) 50% of the entire Peregrine Site for US$ 11m.
Any restrictions, obligations, limitations, targets, etc, of the 'contract' have not been divulged to shareholders.
Will we have to do an FO of an FO, meaning only 25% due to 88E?

We own the leases of 5 identifiable regions:
Umiat
Peregrine
Central North Slopes, West region
Central North Slopes, East region
Yukon Gold

Sell one, or more, or ALL.
The BoD should advise shareholders on the 'Significant industry interest in the results of the Merlin-1 well'
SIGNIFICANT INDUSTRY INTEREST IN THE RESULTS OF THE MERLIN-1 WELL.
Then put PEREGRINE/UMIAT UP FOR SALE.
Advise shareholders of the possible band (eg US$1b to US$2b).
Just like advising shareholders of an FO Drill Program starting (each year...).
Nothing is guaranteed, but 88E efforts are deployed on to communicate and negotiate on selling part of 88E.
(Surely 'significant interest = a good chance of success').

IMHO 88E no longer have the financial resources to make any future Drill Program into a Commercial Success.
We just do not have the technical muscle and the financial muscle to make it in this tough Alaska region, to complete a successful drill program within the weather / season imposed timescale limitations.

Phrontist

go to www.s4capital.com/investors
Look at 2021 Q1 Report and 2020 Annual Report, both released in May 2021.
It is just amazing how well this business is planned and run.
Like an emerging Amazon or Facebook, though not identical of course.
P

ATM the real-time Buy requests are 50% higher than the Sell requests.
P

This share is predictable - short term, medium term, long term.
The SP will continue on a relentless upward slope.
Martin Sorrell has all aspects of this business covered, all is within his sights.
Like no other person, he knows how to integrate other businesses into S4 to maximise profitability and growth.
Experience from his previous business has proven useful (understatement).
A great share for PI's to big Fund Managers.
Phrontist

Moda, great video, much of it at Dead Horse.
Quite artistic photography plus informative about weather, working conditions, maintenance workshop, the aerodrome (ha ha). And plenty of snow.
My thanks to the cameraman....
Phrontist