Member Info for Phrontist

It is worth observing something.
The net to 88E is volume of oil that is going to be raised and sold for us - Free of Charge.
No further CR's required (on this).
Here is calculation: $/barrel x no. barrels = $ to 88E over period (?) of time
This is a great deal.
Congratulations to DW, ME, SS, MM and EO plus teams of Negotiator, Computer Tech, all other staff.
This is a really efficient deal for 88E.
Read that long article Jiddy reminded us of below.
Please do not whinge until you have read this article and understood it.
THEN if you have problem, air it on here....
Phrontist

After all the PR yesterday, DW has issued today 23rd August 2019 his official 88E RNS on the FO Contract.
The second page is a usefull table of our conventional oil resources post-FO Deal.
RNS's are always essential reading (between the lines....)
Phrontist

Think guys.
Others are paying for the wells.
We remain Operator (get revenue)
Do this for 2bbo at 30% interest to 88E/BEX.
Knock off 16% tax from $65/barrel = $54.6/b
Take 30% for net JV (88E/BEX) share = $16.4/b
Take 63% approx for 88E share =$10.3
Lets be conservative, only 1 bbo....
Over 10 years say, revenue to 88E = $10.3billion
EAO excepted. Opinions and corrections accepted with grace.
But lets be frank, $10billion revenue drilled by others is one amazing deal for 88E
Come on guys, get smart, SP should be 2p, 3p, 4p etc
Praise to DW, ME, MM, SS, EO and rest of staff and team.
Would we get this from BP or CP? Not a chance.
Phrontist (likes low risk to 88E, zero cost, many years of revenue.....))))

SP = 1.19p
Kisses everyone ha ha Phrontist

An old name in the industry, but a new name for us in the Alaska Region.
See small section near the end of Premier Oil's H1 2019 Release:
http://www.premier-oil.com/sites/default/files/files/2019-half-year-results.pdf
It seems, they are paying for first phase of the drill, with 88E still Operator.
Based on results, they can pull oil to sell, and
Finance second well
Our first oil revenue will be Q1 2020.
That result will kind of 'underwrite' the value of our Central North Slopes area.
Speaking of Conventional only.

Now we expect News on Unconventional, Yukon and Winx...

Phrontist

Thanks Keefy
Now we can expect 88E RNS at 8am today on LON AIM market.
Let the trading commence.
Phrontist

Additional Details
· 88 Energy to retain 30% working interest in Area A
· Premier has an option to earn 50% working interest in Area B or C by spending US$15m, if the Charlie-1 (Malguk-1 appraisal) well in Area A is successful
· 88 Energy to operate the Charlie-1 (Malguk-1 appraisal) well via its wholly owned Alaskan subsidiary, Accumulate Energy Alaska Inc
· Standard completion documents have been agreed and are in the process of execution, including the Joint Operating Agreement and assignment forms
· Permitting on track: amendments to key permits, associated with 2020 drilling, submitted

A more detailed presentation on the upcoming drilling of the Charlie-1 (Malguk-1 appraisal) well will be released in early September.
DYOR Phrontist

Premier has signed a Sale and Purchase Agreement with 88 Energy and Burgundy Xploration LLC to farm-in for a 60 per cent interest in Area A of their conventional Project Icewine acreage in the proven Alaska North Slope basin. This acreage lies close to the Trans-Alaska Pipeline and the Dalton Highway. The transaction provides Premier with a cost effective entry point into an emerging play, following recent advances in drilling and completion techniques, within a proven oil province and one which has the potential to deliver significant organic growth opportunities for the Group.



Area A contains the Malguk-1 discovery drilled by BP in 1991. This well discovered but never tested 251 feet of light oil pay in turbidite sands in the Torok formation, within the recently emerging Brookian play. Premier estimates an accumulation of more than 1 billion barrels of oil in place, based on the original well data and its evaluation of the existing 3D dataset. There is also considerable upside in the shallower Schrader Bluff formation which has yet to be explored in a play similar to the Pikka/Horseshoe trend. The Alaska North Slope has attracted considerable industry interest recently with technological advances enabling these once stranded resources to now be commercialised. Several similar developments are already underway at various levels of maturity involving operators such as ConocoPhillips, ENI, Repsol and Oil Search.



Under the terms of the SPA, Premier will pay the full costs of an appraisal well up to a total of US$23 million to test the reservoir deliverability of the Malguk-1 discovery. The well will be drilled and tested in Q1 2020 with rig options having already been identified and contracting negotiations underway. On successful completion of the work programme, Premier will have the option to assume operatorship.
DYOR Phrontist

We still have no idea of the FO Contract situation.
But hold faith in our leadership, JV, teams of staff, etc
I feel they have worked extremely hard this year to recover from Icewine 2 difficulties.
My best wishes to all of them and hope for all of us this will be a whopper, ha ha.
But, lets be honest to ourselves.
A small, smart, efficient, value for money 1-well deal with a good company can be effective for us.
This time I am sure planning and well location have been worked over a 100 times to get great result at drill time.
And such a small deal will maximise the amount of resource that we retain.
Once oil is struck with good quality oil, good pressure, etc the value of our retained resources will rocket.
There are many good possibilities.
I am sure The 88 Team have discovered and secured the most appropriate solution for shareholders.
My respect to them all.
Phrontist

What makes this RNS difficult to manage for 88E is this. There could be 2, 3 or more companies involved in this project. All have Exchange Rule compliance requirements. So, they plan and agree a strict process.
Since rumours can start before release, some companies need their SP protected against malicious speculation. This applies to small and vulnerable companies the most.
Phrontist.

Batfink
The Farminee will control when first release is.
And they are probably not on ASX.
Meaning, ASX:88E would have a day of wide fluctuations based on rumours.
A working day on GMT for business open is:
ASX 1am
LON 8am
NYSE 3am ish
Usually the 'customer' in this case Farminee, has first rights on Release time/date.
Remember, most companies are Exchange Listed, so usual strict rules apply on how / when / where etc new information is released.
Good morning all, make the coffee strong, 8am will be interesting...
Even great news....
Still, we have no idea.....
Anyone seen a leak?
Phrontist

There seem to be two possibilities for 88E on AIM at 8am commencement of trading:
First is, the RNS is not ready for release yet. So AIM will open suspended.
Second is, RNS is ready for release at 8am.
In the former case, it is possible that the Farminee has set the timetable for release. We are falling in with this. If it is UK company such as BP, they could release announcement at 10am or something. According to nature of the news, MM's will set opening SP value.
Farminee could be USA company such as CP so we will remain suspended all today. USA announcement will be made later today, ASX and AIM will both open Friday.
Second is RNS is released at 8am, perhaps in conjunction with eg BP.
Oh well, wishing everyone good news.
Phrontist

It could be a whopper.....
Based on a small start of 1 or 2 wells.
And ramping up based on Q1 2020 drill results.
P

Bothwell, I think there are NO leaks because seller and buyer are working through an FO Negotiator.
Meetings, documents, emails, everything will be at and through this middle man.
All we get is a few snippets and unsubstantiated rumours.
Could anyone at 88E have advised us of timescale from July 2018? NO.
Have any posters on LSE had experience of an FO Negotiation? NO
This is a new experience for all of us.
I suspect the idea came from MM at BEX.
We can ask DW at a London meeting in the future.
Phrontist

BP has dropped 1.9% today from a £100b MC.
A drop of £1.9b, quite staggering.
Many reasons possible, we are not experts.
But one is buying a new asset which requires expenditure to develop.
Remembering, DW says this is only an FO.
Meaning, they are doing drill tasks for us to be paid handsomely from the oil proceeds.
But fixed contract FO, not some option to buy.
(DW email early Nov 2018)
Upside is, we are relinquishing a very small part of the total asset.
Phrontist

Correction:
BP at global no. 4 is a revenue giant compared to CP.

V111 this is a discussion based on rumours that are claimed to have legs.
BP could be selling out their leading position at Prudhoe Bay.
Purchaser could be CP and Hilcorp.
This will leave BP with little reason to stay in Alaska.
But, there are many titbits that suggest our Central North Slopes land is attractive to BP.
We offer circa 4bbo conventional and unconventional.
Likely to double over next 5 years since our exploration has much more yet to discover.
So far, CP have unearthed 750 mbo over last 10 years.
But BP is a giant compared to BP who are no. 4 of global oil company revenue.
Do we have a chain....?
Get it?

Alaska's Tuesday morning is our Tuesday afternoon.
Will relevant knowledge be out before ASX RNS Wednesday?
Ummm, long afternoon and night in UK.
Phrontist

There is more to BP than first noticed.
They have been selling assets globally since the Mexican Sea oil spill.
Of course, this was to enable financial requirements of the spill to be met.
But they carried on and on. Streamlining the remaining assets.
BP are an amazing business, you should study them.
Perhaps they had a big think about our patch.
For them, this is easy to manage financial stuff.
Something to chat about before their BoD go out for afternoon lunch.....
Phrontist

I should mention.
Our Central North Slopes geology database was created by Paul Basinski.
He had been at it for, possibly 8 to 10 years.
DW says that PB was many men at once, his knowledge and output immense.
The doubters should seriously reflect on PB's experience and abilities.
With a lifetime working at CP in Texas on geophysics of that region.
Following his sad death, 88E/BEX put together a team to continue the work.
And keep continuing following July 2018 Conventional FO Tender.
So, possibly only 4 working days to 'something' due to BP's internal Alaska pre-announcement.
Phrontist