Member Info for Phrontist

Brent crude oil, and all crude oil variants, are enjoying a continued $/barrel upward trend.
This is excellent for 88E and other oil companies, during these months.
IF Peregrine is successful, the chances of a rapid sell on are greatly improved.
88E spends a lot and makes nothing, depressing the SP.
One oil strike followed by sell on will transform the SP and 88E's future.
Myself, I am positive this will happen.
Who are the funding parties behind the FO? We don't know.
But for sure, their assessment of Peregrine must be VERY positive to fund this project.
Phrontist

A more prudent strategy would have been:
Don't buy XCD, they were not going anywhere, better to buy cheaper and later.
Don't buy Uniat or expand Yukon. Same applies.
Do this FO on Heavenly-1. After all, we bought these leases 5 years ago. The region has been 3D Seismic'd, computer processed, historic BP drilled, Charlie-1 drilled, significant more computer processing....
It is called FOCUS and CONSOLIDATE on the assets and work in hand. Don't keep forcing CR situations until previous expenditures are fully worked.
Phrontist

It is 88E's 7th year in Alaska and 5th with 6th Drill Program.
Every RNS has been about expenditure.
Not one RNS is about earnings for oil or gas.
Clearly this must change.
Just look at the ever increasing lease assets we own!
And consider how much of it lies unattended each year!
This is not good enough.
On the upside, I am positive about chances of Peregrine success but annoyed that the BoD cannot help spend spend spend BEFORE existing assets have been fully investigated.
Phrontist

DW has followed a strategy of disrespecting LTHers and appealing each year to New Investors.
He can afford this on the generous remuneration package extracted from shareholders.
After all, an early CR is only needed because new expenditure is hoisted on us when focus on the project in hand is needed. Surely Yukon expansion and XCD expansion both could wait for a few months until Peregrine results are known?
Phrontist

11:41 correction of the spell checker:
11:27 SAFE for who?
P

11.27, sage for who?
A CR now makes BoD safe but not 88E.
If the XCD program fails then from my shareholder viewpoint it is time for a BoD change.
The new BoD should then investigate selling the business or merging into a senior partner.
After all, XCD merged into 88E on that basis. So it will be time for 88E to merge onto a business with a more workable strategy.
Phrontist

The 88E conforms to the Calendar Year, I believe.
88E has a long standing Resolution that permits the BoD to issue up to 15% of new shares per annum.
Although the SP has doubled from recent depths, it is still extremely low.
To use any or all of the permissable 15% in this first or second month of the year would be to edge the company towards bankruptcy.
Shareholders have not yet had any benefit from the recent 2020 dilution of 35%. This from 20% for XCD and 15% for a low amount of Cash.
It is time for the BoD to have confidence in the Drill Program now in progress. There should be two drills and two Oil Flow Tests.
On some degree of success a summer CR can then bring in 5 times more cash for half the 15%.
A CR before then is a BoD admission of failure relating to the 35% expenditure and the US$ 12 million FO.
Phrontist

Here is an example of consolidation covering up important
subsidiary detaill 6:
Who were the directors of AEA two years ago?
Who are the directors of AEA today?
P

Brom
Consolidated Accounts consolidate.
They cover up subsidiary details.

I am not suggesting that either 88E or PANR are perfect.
But combining operations can lead to advantages.

Example. XCD were unable to launch a Drill Operation.
After merging with 88E, two Drill Operations were on the road within 6 months. And at little cost to either company.

Phrontist

It is similar to the 88E and XCD merger.
P

rfarfa
Suppose PANR had 575,000,000 issued shares.
And 88E has 8,600,000,000 shares.
After negotiations it is agreed PANR will be holding company and 88E shareholders and PANR shareholders will own half each.
PANR issue new additional 575,000,000 shares.
8,600/575=15 approx
So each 15 88E shares get 1 PANR share.
The 88E shares are cancelled.
PANR has 575x2=1,150 issued shares split equally across PANR shareholders and 88E shareholders.
Done. Phrontist

There are things about 88E that erk me:

1 How is our working relationship with BEX developing? (financial, personal, contractual)
2 We should be able to see the Annual Accounts of 88E subsidiaries. (bad stuff can be buried here)
3 Who is doing our geophysical analysis / computer processing? (are we using a team with global experience?)
4 DW has started the 'conglomerate building' scenario. Now I would like us to merge in with Pantheon.

Technically, PANR should 'take over' 88E with:
1 BoD increase from 1 to 4.
2 Combine our geological knowledge.
3 Make more astute decisions regarding each years Drill location. etc
4 Enable DW to focus on Farm Outs where he has raised substantial funds.
5 Enable PANR staff to focus on the geology and exploration strategy.
6 If PANR made a new 100% issue (for example) to swap for 100% of 88E shares, this would enable cancelling of our ridiculous 10billion+ share issue at No Cost.

Phrontist

Spine, yes I'm back for a while....
I used to be an Investor, committed to 88E 100%, for over 5 years.
Sadly PB died and the 88E Mission Plan (unpublished...) changed (without consent...).
Since then, too many mistakes and personal greed from within.
So, now I am a Trader, passing by so to speak.
But not as a Day or Week Trader...more of a month or few Trader.
ATM 88E looks excellent with Peregrine.
Then possible subsequent activities, if Peregrine is successful.
If March / April / May 2021 results are good, 88E should have an excellent 2021.
Looking back from 2015, the XCD site seems to show the greatest promise so far.
And assuming the Brent Crude Oil Price continues it's upward trend (timing is perfect).
Phrontist

The 88E Buys and Sells are quite low volume and evenly matched, except for:
3 Sells totalling 7,000,000 shares at £48,000 between 0.57 and 0.58.
So, possibly just one person has caused the 8.6 billion shares to fall 5% in value.
An MC drop of approx £2,700,000.
MM's are manipulating?
Or offsetting possible larger Sells from the cut-price shares of last CR?
So long as that pressure is present the SP will struggle to go up with positive shareholder sentiment.
But once those cut-price shares have shifted, the SP should drift upwards....???
By the end of January???
Phrontist

And....Brent Crude oil is at US$ 56.55
It seems possible that this will rise to between $60 and $70 during Q2 2021
Clearly a very positive trend for 88E and Pantheon
Phrontist

Over the last 22 days the SP has risen from 0.38p to 0.64p based on RNS described progress.
An increase of 68% yet still mighty 'low cost'.
It is unlikely a major oil company will bid for 88E before the full Peregrine results are aired.
We can hope for a long Spring/Summer with two Drill Operations and possibly two Oil Flow Tests.
If successful then 88E will be on a completely new financial footing.
And, a good result from the Pantheon Drill program will add to the 88E MC position at no extra cost to us.
Phrontist

I agree Rabito, but £10b this Quarter?
If Peregrine Flows this will drive forward all other Projects.
Maybe 2022? Will I live that long?
All the best, Phrontist

On a related topic, I read an article yesterday.
Shorters on the UK Exchange were truly screwed in 2020.
It is one thing for a little ramping and deramping every so often.
At least we are both owning real shares in the company.
But shorters are betting against the company which causes destabilisation of the SP.
IMHO it should be banned and policed with significant fines.
Phrontist

Rabito79, hello.
I sold out of 88E at a lucky moment, relatively speaking.
Then another company gave me a 'leg up' with a generous Rights Issue (for the brave...)
Now I look around for a nice share with plenty of promise, and guess what?
88E has it all....
Phrontist

Share price 0.63p and Number shares 10.6 billion.
MC Market Capitalisation £67 million.

Site leases/projects:
Yukon + extended strip to coast.
Peregrine + Umiat.
Central North Slopes – conventional.
Central North Slopes – unconventional.

Past RNS’s say it all.
We have many substantial pockets of oil and gas yet to commercialise.
Backed up with 2D, 3D, computer analysis, drill data, historic contributions, etc.
Brent crude hit US$56 today.

Look at 88E valuation from another standpoint.
Suppose a ‘major’ wishes to expand into this oil rich region.
IF (this is just a suggestion) they offered £1 billion for 88E (ASX and AIM), then:
SP = £1,000,000,000 / 10,600,000,000 = 9.4p

Current SP = 0.63p
Suggesting an under valuation of 15 times.
Risk – Yes. But lower risk than many exploration sites and companies.
Potential upside on Peregrine success – substantial.
A drill based on a mixture of evidence - proximity to flowing wells, computer analysis, experience and judgement, prior company works.
Drills funded by Farminee, such as Charlie-1 and now Peregrine.

It is opinion as to whether the company with subsidiaries could attract £1b
Shareholder Vote could Accept or Decline a serious large offer!
There are plenty of USA and foreign companies that could be interested, with £1b small fry….
- In the light of oncoming virus vaccination, increasing oil price, increasing travel demand, etc
Economies will be growing during 2021.
Oil is still a cornerstone of industry, commerce, tourism, energy, transport, chemicals, electricity generation.

Phrontist