Member Info for Phrontist

I do not agree with statement that Bidder is calling the shots.

This has been a long FO negotiation with dozens of bidders.

The 'shots' are being called by the asset - Central North Slopes Alaska conventional oil resources.

And to some extent managed by the FO Negotiator.

My feeling is, all has been 'negotiated' .

And now bidder has some procedures and processes to tackle prior to contract signing.

We just don't happen to know what the reasons for delay are.

Phrontist

How about this Brom:

New Consortium Owning and Operating Central North Slopes:
88E / BEX 10% of revenue, no operating costs
Each of BP, CP, EM:
30% of revenue, 33.3% of costs
Similar to Winx JV.

Phrontist (PS it is OK to dream....)

Winston Churchill: “If you’re going through hell, keep going”

SaintAnthony - last Thursday of every month!
Good suggestion. So, Thursday 27 June is D-Day

Thinking positive beyond boundaries, I suggested last year the delay into Q1 2019 could be based on accommodating a Consortium.

The Prudhoe Bay Consortium for 30 years has been:
BP - lead
Exxon Mobile
Conoco Phillips

You all know, I hate to Ramp, but it is possible.

OK, on the deramp side, no FO Deal at all.
Does anyone actually believe this is possible?
See your Doctor.....he will buy your 88E shares off you.

Phrontist

Many posters here are focusing on DW as 'the man'.

Choosing or selecting the Preferred Bidder is not a one-man job. It is teamwork.

PB's partner, Michael McFarlane will be quite influential in this negotiation process. He has a lifetime of experience in the vast USA oil business. DW is very much a New Boy on the block.

Phrontist

Ah, so feelings are...

CP or Shell

Any more suggestions?

Ummm, many possibilities, at least 50 companies would be comfortable with a large scale, long term project of conventional and unconventional oil reserves like Central North Slopes.

Keep patient, keep positive.

Still no leaks. ))) No facts. Just guesses.

Phrontist

It will be CP....

Phrontist

PIMCO manager Bill Gross (a wealthy man...) says one of the biggest threats to an investor is the emotional roller coaster of watching the stock market on a daily basis.

A lesson to learn. But when waiting for an FO Announcement for over 180 days, this is difficult advice to follow.

Phrontist

Stroan

Yes, I understand your answer.

In a sense it is nothing serious. JKX have had many director changes over recent years.

But curious the SP decline from 57p down to 40p over the last 2 months.

Maybe tracking recent decline in crude oil prices.

Two directors Bukovics and Shtyrba resigned on 23 May, they are currently serving 3 months notice.

Anyone know why they resigned?

JKX are looking for two new director replacements.

And if the drilling results are so good, why is the SP diving?

I would greatly appreciate comments from anyone that has knowledge on this.

Phrontist

What is going on here?

Transformational was the £1 share.

Now we are gasping for 2p, maybe 3p....

Has something gone wrong?

Yes, Icewine 2 and Winx.

But a years investment has gone into fracking.

Over a year has gone into conventional field work, computer work, FO negotiation work.

Winx will return, Yukon could be close to monetisation in some way.

Chin up, positive outlook, next round of RNS should be good.

Exploration is more than drilling one well then holding our hand out.

Phrontist

FO Announcement could result in SP from 0.50p to 5.00p
We are at about 1.00p
I think this is a pretty good bet with potential for much more on upside than loss on downside.
OK, famous last words. It will be 0.4p or 6p.
But this is why many of us are here.
There is no such thing as a Dead Cert.
We are hoping this risk is loaded in our favour.
Something to do with suspected 4.5bbo under the ground.
Phrontist

We have been bogged down with one bidder since Q4 2018.

BEX 88E have many conventional prospects.

Why can't we proceed with multiple Farmee contracts?

Phrontist

Often (mostly?) an individual has strengths and weaknesses.

But a carefully honed Team?
Strengths are multiplied and weaknesses are covered.

Our FO Conventional Team:

David Wall (88E Executive Director, MD/CEO)
Dr Stephen Staley (88E Non-Executive Director)
Michael Evans (88E Non-Executive Chairman)
Michael McFarlane (Burgundy Director, CEO)

More people are bound to be involved, internally and externally.
At Contract Level, Government Level, Technical Level, Financial Level, Strategic Level, Negotiator Level.

But leaks? Absolutely nothing over past year.

Not from 88E or Burgundy, not from Sub-Contractors, not from Bidders, not from Advisors.

Shareholders have suffered a long wait with little information.

Me, almost anything will do in the contract now, so long as it is agreed and signed. And at least one investigation well is drilled in the best spot possible.

But The Team, and the Aura is giving off a message.

A monster (a thing of extraordinary or daunting size).
A whopper (surprising because it is so much bigger than the usual size).
A blinder (dazzlingly good piece of play).
Something worth waiting for.
A contract that reflects 528,000 acres oil reserves within the oiliest place in the world. (349,000 net to 88E)

A thought occurs to one. The Bidder may also be delayed to organise some latest technology to 'guarantee' getting the job done correctly.

IMHO Phrontist

The last RNS was 2 weeks ago covering all projects.
I feel it improved on statement focus and positivity for Conventional FO.
But gave zero information on the expected scope of the contract.

There are 3 weeks left in June.
It seems BoD expectation is signing FO contract during June.
88E / BEX cannot guarantee actions of another business.

If June is missed, next realistic window is September 2019 to continue negotiations.
Most people take summer holidays during July and August.

Have we received a Letter of Intent?
This is normal with large long duration contract negotiations.
Since we are ‘on hold’ with other negotiations until this one is resolved.
After all, you don’t get engaged to 2 or 3 women at the same time. )))
Engagement ring is a promise to marry…..
Letter of Intent would say ‘it is our intention to sign this contract subject to us completing A, Q and Z’.

For me, I am not expecting 'the world', just a good ‘progress making’ deal.
An FO Agreement that attempts to bring up oil in Q1 2020 using 1 to 3 wells.

Why do/re-do 3D Seismic over the 500,000 acres when only 1 to 3 wells are planned?
What criticism can there be of our own funded 3D Seismic take and processing?

Will the wells be limited function exploration wells, or full function production wells?
Could they utilise lateral function to improve Flow Rate and reach?
Could they have option to go past 6,000 ft to 12,000 ft vertical for HRZ frack?
The sweet spot (big oil-soaked mattress) is across the whole region.

Conventional in Q1/Q2 2020 followed by Unconventional in Q2/Q3 2020.

Just some thoughts.
Whilst we wait in hope for DW’s ‘blinder’.

Phrontist

Here here Brom, well spoken.

Phrontist

Is this the leak before the dam bursts open?

As mentioned, this is bigger SP change than the usual 0.77 to .83 trend.

Just remember guys, this is not because 'we deserve it by now' type of sentiment.

It is because there is 4.4bbo under our land as conventional and unconventional oil reserves.

OK, there can be questions as to how extensive our de-risking has been.

But that is not 'will there be a deal'.

It is how good will the deal be?

Remain positive with warmth in your heart.

Stress is bad for the mind and body.

Positive vibes are good. The fundamentals are excellent.

Phrontist

Ha ha, Moneyhawk I like that:

Natural gas renamed Freedom Gas
With special molecules. ))

Now we are close to big new discovery:

Freedom Oil, 5bb of the stuff.
Quietly hiding under Central North Slopes

Waiting for FO Contracts to release these special molecules
Light crude oil waiting to flow down the TAP
And take a Tanker Cruise to California...

Yes, soon, very soon....

Phrontist

h continued, so is this the Rule of Cockneys:

pronounce h's that are usually ignored
and
ignore h's that are usually pronounced

'ow is that, yaw 'onor )))

tinlode, surely

'h' is pronounced as 'h'
meaning, as in the start of hat, harry, hi, hello etc.

A chap called Marushack is CEO of Conoco Philips Alaska.

Read their plans in the North Slopes region:

https://www.ktoo.org/2018/10/16/qa-conocophillips-alaska-president-discusses-his-prediction-for-a-north-slope-renaissance/

from last October 2018.

Clearly they are incredibly active in the region. But are we part of their plans?

Or is it Repsol, BP, Exxon Mobile???

We have a double-big attraction:

The Dalton Highway and Trans Alaska Pipeline both go North-South through the Eastern side of our massive 500,000 acre site.

This is a major PLUS for any major operation. Really significant.

Much of CP's discoveries seem to be East and North of our patch.
Logisitics will be a big expense, even add to risk of oil removal.

Phrontist