Member Info for Phrontist

Just remember...
No debt (ignoring back to back Alaska Gov / Bank loan)
Over 500,000 acres working interest leases
Low overhead
Good results on our original land
Good results knowing there are better places to drill
High technology will continue to aid our efforts
Phrontist

PMO walked before 90% or so of Charlie-1 evaluation had occurred. Many times it has been said, the crude oil price crash had a detrimental effect on their business, plans and priorities changed.
Central North Slopes are beginning to flex their oily muscles.
Phrontist

Glad I kept my holding.....
Phrontist

Actually Guz, I do not agree.
Bad luck, two deaths in the family, poor medium/long term
cash planning, debatable competence of BoD, oil price battle between Saudi and Russia, coronavirus.....

None of these affect the reality of :
...is there conventional and/or unconventional crude oil under the substantial land leases owned by 88E / BEX ?

Phrontist

Des45, why do you say, CP will 'never farmout into these leases....?'
P

Rabito et al, everything we say here is speculation.
So saying something is just speculation has little meaning....
I speculat $3b for 88E total group Sale Value as a target in a year, possibly.
Then we need to see if this target is plausible.
FO Drill of a Double on XCD Patch and Larger Single on Central North Slopes is a must.
DW proved his worth on Charlie-1 FO.
He and the team can do this again, with more proof to offer Farminee.
Of course, the farminee will want 60% of Production Flow, but this is on a limited area of our vast patch.
If the Oil Flow and tests are excellent, the farminee will be at the front of the queue to buy 88E out.
The USA oil industry is obviously undergoing a re-vamp to a revised economic model.
They are not shutting down.
The original plan for 88E (with PB) was to discover, de-risk and SELL the leases.
I am suggesting although the plan is taking longer than expected, it is still the plan.
Also, and this is key, we need XCD to flow oil in at least one of the two Drills in Spring 2021.
This will strengthen the SP making forward planning more realistic.
Phrontist
PS don't forget imminent HRZ Lab results. Is it a Go'er?

Interesting.
Norway's Equinor will not drill any more wells in the US shale patch this year as it slashes £billions in spending in response to the oil price collapse and coronavirus consequences.
Namely the Bakken and Marcellus shale plays. But no asset sales.
Equinor aim to be cash flow neutral at oil prices of $25/barrel.
Plans to be a lower margin longer term business.

Really, this is amazing. It implies once oil discovery has been made, then production costs at that well are pretty low.

Can this be replicated on Central North Slopes, following our oil discoveries in 2021 (optimist speaking here....).
This 88E business still has plenty of oomph under the accelerator pedal.

Phrontist

I have a nice photograph of the Globe occasion, about 20 of us in the picture.
Phrontist

Zoro, of course we cannot predict the future.
It is interesting to note, DW in his controlling position knows more about 88E prospects than any other person. He is not a geology or technology expert, but he is able to assess 'positions' with advice from 'experts'. Such is a company MD.
DW is not only still here, he is increasing his holding at a steady rate.
And he understands $$$$$

Next point is this. We are unexpectedly short of money due to Icewine-2 issues. So we are going slower in our exploration activities than many other companies in the region. Because we are going slowly does NOT mean there is any more or less oil in our ground of which we have plenty.

It appears that some other exploration companies in the region are having reasonable success. Our next drills (XCD and Charlie-1 area) are more likely to be successful because the companies geology knowledge guides us to homing in on successively better drill locations.

Junior exploration businesses are nothing like any other kind of business. All the ones that eventually make it big had struggled during their early years. And, we note, some of them never make the grade.

As for oil price, that adds another layer to our risk. It is reasonable to speculate that oil will be over $50/b within two years, a timescale when 88E could be producing. And it could be over $60/b.

If 88E strikes oil on XCD area and in Central North Slopes area, then possible bidders for 88E could force the BoD's hand. Should an offer come in for US$2b during 2021 the BoD cannot just ignore it. A shareholder vote seems likely and current sentiment would snatch at such an offer.

That is about US 25c/share or 20p. DW would make over £20million.

But we must not forget Burgundy. Make the $2b become $3b, then above figures still hold.

Phrontist

Alaska Drilling and Completions are already a supplier to 88Energy:
https://www.ak-dc.com/projects/
(AEA is last one on the list)
Watch the two short videos, showing low cost transportation to drilling site and installed operational pics.
I think US$15m for two XCD wells is on the high side.
But this is how it is done.
Phrontist

MSMN - good people, good strategy, but everything will not happen in a day.
The share Buys and Sells are all very small values, hardly significant on the MC.
It is possible larger buyer commitments are held back by the Crude Oil Price.
US $40 /b for Brent crude has floated up to over $45/b.
Good progress, but still very low margins for crude oil producers.
If more aeroplanes can get into the air and ships into the sea, then crude oil $ will rise to $50+ and up.
Then oil producers can make better margins, share prices will rise.
Just a thought, Phrontist

Good morning all.
Cd66
Where did Eric Opstad say this?
Phrontist

S-fx
Just click on Phrontist and follow back a few hundred, or thousand....(DYOR)

WAussie, I have also sent an email to DW about 8 weeks ago, with three reminders.
My last email, I requested acknowledgement of receipt.
Still nothing.
It is only my second set of email questions in five years.
I am not pre-judging DW. 88E is working in a complex business situation during catastrophic times for the oil industry.
I felt some progress information was provided in the recent webinar release and DW's video interview.
Shareholders have been highly critical of the Charlie-1 project.
I am the opposite view, believing that it brings immense geological information of the central area of the Central North Slopes.
Meanwhile, it takes time, effort and money to analyse samples, relate to 3D Seismic computations, and ultimately work out where the next steps should be for both conventional and unconventional in this region.
On the plus side, note that this $23m Drill programme has been paid for with our contractual obligations of 'giving away' 60% of the production oil being cancelled.
88E and BEX JV is in a strong position, except for the usual cash planning requirements before resolved (again) by FO contracts.
Phrontist
PS all this and coronavirus .....

In the UK the role of Company Secretary is often carried out by a specialist Accountancy Practice who act as Company Sec for 100's, even 1,000's of companies. Their billing rate will be higher than a junior employee but cheaper than Finance Director.
Since they carry out these functions for so many companies, they know the ropes 100%. Mistakes are rare, advice is based on experience of specially trained staff, and actions happen quicker.
When 88E had two company secretaries it indicated that all staff in 88E did not have a clue about running a business.
Phrontist

Definition and detail from school science learning about exploring for oil:
Cap rocks
Oil and gas can only be trapped in reservoir rocks if there is something above to stop them escaping. This needs to be an impermeable rock or ‘cap rock’ that will not let fluids flow through. Although well-cemented rocks are usually impermeable to begin with, they often become cracked later, allowing oil and gas to escape.
Do we have any RNS or Presentation details on cap rocks covering the reserves we are targeting?
Have our reserves depleted naturally a few thousand years ago?
Over to the geology experts.......
Phrontist

Just closed, final comment:
'I'm a big shareholder and I'm not selling.'
P

Webinar with MSMN is still on...nearly finished...excellent presentation by genuine guys....
Phrontist

Cash Raise? Nasty smell for shareholders? True.
But we are on AIM Market.
This is where Investors meet Entrepreneurs.
We are buying into a companies future business position.
88E remains a business with extremely good prospects.
If they borrowed money whilst in early exploration phase, the balance sheet would degrade.
Leaving two ways of raising short term money - FO and CR.
And when a well is fully derisked, it can be sold for a substantial amount to a production company.
Leaving us with surplus cash in bank and many more wells to explore and derisk.
Not every step of the way will be successful as in oil flow.
But every step adds to geological knowledge which guides us to - OIL GUSHERS.
So, to LTHers, grit your teeth and look forward to next vertical drill and first horizontal drill.
Phrontist

The presentation states what we already knew, more or less.
The picture and outlook is extremely good.
It is a well prepared document consolidating our overall position.
Four FOs on the go, all with pretty good prospects of success.
Real debt is nil.
The company still does not show our Intellectual Property as an Asset from an Accounting viewpoint.
But I would say, it's value must be many 10's of millions of US$.
If the 88E Group agreed to a US $ 1 billion, that values us at US 10c per share approx.
Personally I am comfortable with prospects noting some regional Oil Flow Rates are over 3,000 bopd using horizontal technology.
Soon we will have at least one of these, maybe a few.
Phrontist