Member Info for Phrontist

How many people remember:

During 2015 PB designed the original Icewine 2 well for Vertical AND horizontal application.

88E were smart, they discovered how to save some money - drop the horizontal support.

I word this kindly - BEX (geologist and oil well experts) were over ridden by 88E (the field operator with no fracking expertise).

Just look what happened.....

Phrontist

JofHoggit

RMP has dropped because it failed on Winx, a very new project for them.

Meanwhile, their web site covers other investments they work on, not in Alaska.

Winx was FURTHER diversifying for RMP. Adding to several other expensive pastimes.

I think and hope they recover, within a few months. If a geologist can find correct place to sink Winx-2. With evidence. Not just the mantra - 26 out of 26 wells, the 27'th is bound to work.

Geological evidence is what is needed. Not sticking pins in a map.....

Phrontist

S4K

This posting site is for shareholders to examine the pluses and minuses of investments we make.

Rampers and Derampers both, are useful weather vanes of deeper problems in the company.

If you think everything is just great, good for you.

I do not think that.

This is a moment to realise that shareholders are being manipulated not rewarded.

OK S4K, you are happy to see losses, one wave after another. An annual Event that can be guaranteed.

The BoD need to have a BIG rethink, with BEX, about our crass performance.

Sure, I may be singing a positive tune next week.

But this week I make a serious marker.

This BoD are failing the shareholders.

If you can manage to cast an eye over ASX Hotcopper, you will read some very serious, almost suicidal investors comments. One after another.

S4K, I suppose you wish to blame other shareholders for these OBVIOUS failings? Excepting yourself, of course.

Deramp?

Most of us focus on over 4bbo under Central North Slopes. HRZ is thought to be recoverable. FOCUS.

Maybe the conventional is 'water and clay' like Winx. We have never dropped a well over there. Too busy increasing land by 4 times, buying Yukon, palling up at Winx.

I sincerely hope the BoD have their act together by the AGM.

If not, the SP will do its own downward thing, without help from Derampers.

Phrontist

WAussie, what can I say? Offer accepted, your office is somewhere in Perth.....

I think we and many LTH agree. This business has not panned out as well as it might have, or could have.

I have often said the problem with AIM is, spending too much money.

Taking eye off the objective - get some money in from selling product or service.

Until then, stay focused, avoid distractions, do not diversify.

Up until Icewine 2 we were quite efficient and focused.

Then big problem to sort out.

From that moment the BoD failed us.

All spending should be restricted to that one task - HRZ.

New tech 3D Seismic on the area is a possible, not sure of the cost.

There are a few High Tech oil well problem fixers, we should have hired one immediately Icewine 2 was first shut in. Then were the first signs. The company should have acted immediately instead of spending money on other activities.

Two years later, still no answer.

Winx will probably go the same way......who needs geologist on the board?

Phrontist

Neversatisfied

BH being the British oil exploration expertise company in Aberdeen?

Their history is excellent.

But 9 months has passed now, maybe 8 or 7 months. Still, long time.

They are not meant to be learning on the job. They are meant to be finding the problem with rapid expertise, as promised on their web site.

We have not been made aware of the cost of this job, or aware if it finished yet, if not, likely completion date?

I would suggest, this is an event that qualifies for RNS on its own.

For me, Yukon and Winx are not viable for us yet.

Reason, the company has unfinished business - Icewine.

Now we have four projects hanging out there, instead of being focused on the original two.

If we had ceased from trying to buy up entire region of land, and spending on other projects, then Icewine would have been cracked by now.

The SP would be 6p or something quite strong.

THEN we could wander off for the Yukons and Winxs of this world. From a position of strength.

Instead SP grovels at 0.8p, pre 2015 Christmas.

And no date for a barrel of oil from any of them. No focus.

Phrontist

13:01 errata

Salary is circa £470,000
Drop is half - £235,000
So new DW salary and Geologist salary are £235,000 each.

How many of you have earned that kind of money?

Phrontist

csw2, lovely stuff. When did you first buy 88E shares?

The change from Tangiers to 88Energy occurred end 2014.

2015 it was (like) a new company, new objectives, new partners, all but one new BoD.

If BoD had said we have no target date for first oil, would you have invested?

If BoD had said we lift first barrels in 4 years time, would you have invested?

If BoD said, in for years time we would not have lifted any oil, AND we will not have a plan for when we will lift first oil, would you have invested.

In 2015 we were advised there was oil 'down there'.

Icewine 1 proved there was when it raised HRZ sod and it was examined.

Said to be excellent stuff, amenable to commercial extraction, etc.

4 years later, still not a drop of oil.

What is your verdict of such a company?

I tell you what, how about ANOTHER 4 years, is that OK?

Will investors come pouring in, SP rising ….

Phrontist

All inputs are appreciated.

I am sure there are many diverse views.

garrym will know this, but is he field operator / operations extracting oil
or
Geologist by training
or both?

Certainly more knowledgeable than most of us.
Perhaps he should be new Geologist Director of 88E?

Phrontist

It is nearly 2 years since Icewine 2 was drilled, and it has still failed to flow oil.

It is nearly a year since specialists were hired or contracted to discover the underlying issues.

But we are told nothing.

Shareholder money is pouring into 'behind the scenes' activities yet we have no RNS of progress level, completion date, findings, etc.

Directors are meant to 'report' to shareholders. All we get is nothing or very spread out releases, with little real information.

Has HRZ been examined in laboratory? (of course it has, which one, when, …)
What was precise result of HRZ?
What is the recoverable oil per cubic meter of HRZ?
Is it deemed commercially viable? (or is this a pipe dream?)
What are the target production costs to extract?

These are facts and issues we need not know if Icewine 2 worked the first time.

But since then I feel we should be knowing this information.

What does it tell YOU when DW spends money on a little known about project on someone else's land instead of spending OUR MONEY on a project we have been paying for over years (Icewine)?

It tells me, DW thinks low of HRZ and high of a new 'shoot from the hip' project 'out West'.

It is well past time when real information was given to shareholders.

The only thing between extracted Icewine oil (conventional and unconventional) and us shareholders is, yes, The BoD!

Phrontist

I have mentioned over the weeks, months, years...

We no longer have an oil exploration geologist on either of the JV boards (88E and BEX) or RMP. Otto Energy, I don't know.

JW, GB, MM etc all have their various talents, but they are nothing like an experienced oil exploration geologist.

Those three assessing where to put Winx-1 on the Western Blocks is laughable.

At this level of exploration, it is not enough to seek advice of geologist, or even employ (contract?) a geologist. He needs to be part of the final discussion and the decision. And earning from the profits (hint).

Loss of PB hits us time and time again, no one listens.

I have suggested that:

1 DW accepts 50% salary drop (yes, £470,000 drop)
2 88E hires a geologist director at SAME salary (about £470,000 pa, yes....)
3 Performance bonus's apply when successful

Would you employ a boxer to run a kindergarten?
Would you employ a doctor MD to run a building business?
Would you employ business / salesman to run an exploration company?

It is four year now and:
1 Not one barrel of oil been lifted.
2 Not one FO contract signed.
3 No date for next attempt to lift oil. 2020? 2021?

The above named are good at fanfare and spending money, but none of them have actually had experience at making money from oil underground.

I have met 2 of above 3, they are great blokes, but they are incomplete without experienced board level geologist.

(We have SS but as non-exec director, they are often referred to as absent directors, lending their name to a business. And he has issues with Upland which may become Downland soon...).

Icewine 2 (2 hits and 0 lift) and Winx-1 both prove my point.

Why are we here (shareholders) ? Because a certain PB led the way in 2014 to Central North Slopes holding over 4b barrels oil. Maybe double that. We know it is there!!! But unfortunately the oil has not moved upwards yet.

Phrontist

Thank you Nigoil.

I have been shareholder for 4 years now.

I am sure the quality and depth of our 'team' is better than a slow coach to failure, as described by many here.

They are sharp, hard working, contacted, clued up people. OK, we lost the best geologist on the planet, but I hope PB is looking down on us favourably.

At last Presentation I had a 1-2-1 chat with DW for 20 minutes. He seemed happy, confident, focused, relaxed, aware of all issues I could fire at him. As we all know, DW is far from being a Ramper. But the business and its parts seemed to be going well.

Of course, we all hope 88E / BEX pull off a successful FO deal.

Phrontist

And did you know?

That Australia's largest export is Education. )))

Asia and Far East students attending residential Australian Universities.

Yes, it is true, Australians do speak English.....

Farmee could be from India.....and many other possibilities we have no idea about.

So, lets give DW and rest of BoD a break.

And remember where SS used to be a director - Cove Energy. Tough secret negotiation. Then wooosshhh.

OK, that is a small ramp, I admit. )))

Also, take note. A large Farmee is looking to buy and operate the site for 30 years. This company, organisation, government will be undertaking massive planning task. This is months of working and investigation on their part.

Issues of Due Diligence...…

I am sure DW mentioned Tier 1....he certainly did to me at last Presentation evening. But chat is just chat, I not hold him to that. Negotiations have their own ebb and flow.....

Phrontist

Someone mentioned 88Energy name was selected to attract Chinese involvement.

I understand that Australia and the Far East are much better connected than UK and Far East.

A recent Australia PM was fluent in Chinese, it is an indication of the mutual influence between these two countries. Europe does not see Far East being other side of the world.

Suppose 88E negotiation is with a Far East company or Government. Constraints of PR and RNS's would be extremely tight. 88E would have to fit in with such a Farmee ways of doing business.

Delays can occur based on US and/or Alaska Government approval, such red tape is notorious for taking its time.

Again, I am not trying to ramp. But there are scenarios which make todays SILENCE a necessity whilst assuring a positive final outcome.

Ultimately the result could be excellent.

Phrontist

that if the FO negotiations had failed, then DW is obliged to tell us.
AND
if there is to be another postponement, DW would know by now and again be obliged to tell us.
SO,
a positive outcome does seem likely IMHO.

I am not trying to ramp or de-ramp, just view the position logically.

It could be that DW is dying to tell us something positive, but commercial confidentiality prevents it until Farmee agrees to announce something.

It is quite possible a contract is concluded, but Farmee wishes to make preparations prior to announcement.

I feel sure that if the FO result was/is bad, we would have been informed. It is the Rules.

If the Farmee is a quoted public company, they will also have shareholder considerations and Exchange Rules to follow.

The Winx result has caused negativity in 88E and RMP. But clearly, the Western Blocks are not connected to Central North Slope area, any geologist will know this.

Phrontist

Nobody knows the FO position except a few people involved in the negotiations.

There do not seem to be leaks.

The company can ethically lean on commercial confidentiality to keep quiet until final contract agreement.

Fact is, we have no idea.

Decide to sell, hold or buy.

And wait.

Remember AGM is 15 April in Perth.

It is reasonable to assume a full activities report will be issued before then.

Less than 2 weeks to end of Q1 19.
Less than 4 weeks to AGM.

Phrontist

All LTH investors still believe in the vast area of land and the large amount of de-risking that has occurred across about one third of this 500 sq mile area.

Potential benefit to shareholders remains substantial.

The problem is, BoD have followed a business strategy over four years that has failed to raise even one barrel of oil.

But they continued to buy up leases expanding our original sub-100,000 acres to over four times this size.

The BoD must make proposals to raise oil in the short term.

Not Yukon or Western Blocks diversions.

But oil from Central North Slopes.

Phrontist

Shareholder money has paid for:

Nine months of conventional Farm Out negotiating, which includes creating and maintaining Data Room for Bidder use.

Over 12 months investigation into Icewine 2 to discover problem and to propose the route forward, popular feeling is implement horizontal wells as recommended by PB over two years ago.

So, since DW recently promised, we can expect a Report with results and plans for way forward on Central North Slopes Alaska. It is a long time for shareholders to wait with no feedback or progress information at all.

Tonight, David?

Phrontist

There should also be a review of the Winx-1 program to avoid repeating same mistakes.

It is easy to say in hindsight, but this project did not seem to be based on quality computer based information and analysis.

The four companies got together, likely in Perth.

It must have seemed like a great idea, let's go ahead guys, Wooosshhh.

Oh, and tell shareholders 30% chance of success.

I am no expert, but has any other drill program in this region managed to find water followed by clay?

Did the three CEO's each review the technical grounds for drilling Winx-1 in the final spot?

Or was it gung ho approach....

Phrontist

Our JV may do Winx-2 themselves or they could farm it out.

But there are important steps to happen first.

Full 3D Seismic across whole Western Blocks area.

Computer processing on the data.

Geologist in depth study.

Linking to surrounding area Seismic geological data.

Gaining insight into oil reserves, rock types and strata etc.

Selecting best places for possible Winx-2 and understanding what to expect in the drill program.

Then decide Go Ahead or not, and FO or own (88E) drill.

Shareholders should be given timescales and progress reports.

Professional approach not speculators approach.

Chances of final success should be very good.

Phrontist

This could be the start not the end.

Winx-1 is history.

But there could be a Winx-2

Our Western Blocks is a significant area.

Winx-1 gained important geological information.

Further analysis may reveal an attractive place to drill Winx-2.

The Seismic Data is old, not up to standard of todays 3D Seismic.

Perhaps a new 3D Seismic of the whole area is on the cards.

But what do we know?

This needs some geological study and assessment for a new well location.

Divide well cost by 3, it could be economic...…Otto Energy, Red Emperor, 88Energy

Phrontist