Member Info for Phrontist

hello happy_hatter

I am pleased to appreciate the significance of that Post.

I think, about 50 companies showed interest from the start.

It is almost unknown for a company to work through such a bidding process, only to drop out at the end.

I think BoD, DW, BEX really know what they are doing.

Personally I see no reason for failing to sign during December.

I used to be involved in large sale contracts and all parties stick to timescales set.

Phrontist

HSBC told me to use online messaging in InvestDirect for my decision on number of shares being taken up, notified by midday 23 Oct.

Sufficient funds for payment will be taken anytime during 24 Oct.

If the funds in Cash Account are not sufficient for the number of shares requested, then none of your election will be taken.

Hope this helps. Phrontist

HSBC told me a year ago that there were 8 market makers for 88E.

Maybe things change, but 30 does seem a lot.

Phrontist

Eric Idle just on BBC News, his motto

Always look on the bright side of life.....

If you remember this, then you are old....

Phrontist

LTEL

I agree, 10p for me will be wonderful.

Now in 4th year of support for 88E, there have been stressful times to say the least. I am realistic to an extent, there is risk at every step.

I have never been involved in a small oil exploration business before.

It has been amazing eye opener, great education, hopefully successful investment. Much thanks to that hard working and level headed Brom, cataloguing many of the issues arising on this journey.

And most thanks to DW who shows immense determination and resilience.

My calculations in previous Post are simple. The question is, will the Central North Slopes yield as much as 16 bb oil over a 20 to 30 year period?

Definite answer is unknown. But who does know what amount of future resource will be produced from a new virgin discovery?

Coffee time, Phrontist

rfarfa

When I spoke to PB it was almost 2 years ago at another City Presentation.

He discussed setting up a charitable Trust with a specific project in mind.

It was to safeguard youngsters in the Congo. Offer them education, food, accommodation, health care etc. A long term project. Keep them away from the endless terror groups and bring a better life to Congo.

He implied that possibly all of his BEX profit could go this route. He felt his prior earnings were sufficient for his needs, more was not necessary.

But this was chat, not interrogation. I do not know how specific any of it was, except to say, the charity would happen from his viewpoint.

Hope it helps, Phrontist

128064

Don't talk, act.

Many people write to DW at Perth HQ.

He is brief with replies - Yes or No are popular answers. ))

I would appreciate your checking voracity, many people here will wish to know the answer as well.

Read my two posts Tues 9th last week.

All the best, we are all after the same thing, Phrontist

City of London?
Perth?
Dead Horse?
Houston?

Phrontist

Hello 128064

I had a chat with DW in the evening of the City Presentation.

He said (smiles...) it is company practice to NOT divulge names of 88E/BEX suppliers, consultants, etc.

Phrontist

88E and BEX jointly have hired a Professional Oil Farm Out Contract Negotiator company (located in Texas) to handle the immense amount of detail involved in arriving at final contract.

AND, arriving at selected bidder (bidders).

This process of undergoing transition from Exploration Field to Production Field is quite common.

It involves many variables - time, Oil Resource now versus final Oil Resource achieved, crude oil price, costs of production, costs of infrastructure, continuity of oil resource chemistry, oil grade / quality, etc etc.

In 2015 / 2016 the feeling here (88E BB) was that we would de-risk and cream the curve, ha ha.

Then some wealthy Production company buys the resource off us lock, stock and barrel.

Based on PB's personal target of his own return being US$ 1b, an estimate of this 1-hit Sale would be about US$ 10b.

Since then many things have evolved. Crude oil price, fracking lateral technology, 3D Seismic technology, electronic control systems and electronic sensor techniques, even management experience.

Oh, and the emergence of a significant conventional resource.

The Central North Slopes could yield 16b barrels oil over 30 years IMHO.

If a 1-hit Buy All contract is signed, two feelings occur. Buy-In company needs to raise vast amount of money in one go. Very high risk. Plus they need multi-billion ongoing investment to get production going.

If a more spread set of contract terms are concluded, the initial cash demand on Buyer is less onerous. And the ongoing amount of payments to 88E will be a much higher value, but spread over time (many years).

We could receive 2 to 4 times the 1-hit Buy Out value. Maybe more for a variety of reasons.

And the production Company can also benefit from this (as a public company) with less emphasis on big borrowed sum up front, and more emphasis on setting up volume production.

For 20 to 30 years. And we receive $5 / barrel over this time. (Inflation proofed, crude value adjusted, etc).

If eventual (it is BIG area) produced resource is 16 bbo, then at $5/b, 88E/BEX receive US$ 80b over 20/30 years.

And Production company receives about (todays prices) $40 x 16 bbo = $64b gross margin revenue.

So, if anyone is thinking, ohhh 88E/BEX will never get a Farm Out contract with big Guy, then think again.

Our resource is being fought for every day of every week until final contract. Which should be December 2018.

Phrontist

I have given my 3 sons some 88E shares in personal ISA Accounts.

My instructions (wishes...ha ha) are:

Hold onto 88E shares for 10 to 20 years. It is a never ending Project for them in Alaska.

BoD IMHO are planning to have their jobs for life.

Phrontist

Over 4 to 5 years I am sure that:

Share price then + Accumulated capital Refund will =>> £2 / share (£2 or more)

Many people will be buying at £1 as continued oil finds / de-risking advances based on the conventional and unconventional production (then) in hand.

Note 1: The whole of the central part of our land has not had 3D Seismic yet!

Note 2: Unconventional is like a massive carpet of HRZ from West to East, and South up to North. Sweet Spot. This is PB's find. Our level of de-risking so far is very small.....

The amount of land involved is just colossal. Putting in wells across the whole area is a many-year project.

Which asks a question about 'terms' in the Farm Out Contracts. Will they have a 1-hit Fixed price Buy Option during Farm Out period, or will there be a scalable Buy Out Price based on ongoing oil finds?

The Farm Out Contracts will determine much of our future SP path.

Phrontist

continued:

The Conventional Farm Out Project attracted substantial numbers of applicants. This was reduced to 30 several months ago. It is now well underway to be reduced to 5. Then 1 or possibly 2 (I think, maybe) for final contract.

I asked DW why the Conventional Bar on P7 had no obvious milestones for the Farm Out company during 2019. Then followed by 2 oil rig pictures in early 2020.

The answer is, MAJOR OPERATORS (hint) re-do everything again from scratch plus more. Meaning, they will carry out 3D Seismic across the whole of the Central North Slopes region. Then process the data with interpretation of oil resource locations. Surveying for roads, pipes, etc.

Then they plan out how the field will be drilled for production purposes. And the most suitable places for the first batch of wells in 2020. Could be 2, could be many depending on quality of information from 2019 work.

Taking up the option to Buy is likely to occur end Q1 or during Q2 2020.

Will there be any progress payment during 2019? I do not know. The Contract Negotiation company are there to get agreement between parties that are reasonable and fair to both sides, including industry best practice on such matters.

It is worth noting this point. Once the Conventional Farm Out Contract is signed (by end 2018), our work on this project is complete. The Farm Out company is taking over the site for all future conventional work. I am sure we will provide a Support Service through 2019 to avoid unnecessary holdups. This may come with a monthly fee, just my experience says this, not said to me by DW.

I feel that 88E/BEX/AEA etc as a group is maturing and developing along excellent lines.

Phrontist (IMHO, DYOR)

The September 2018 Presentation by DW with document was excellent. Then we had an opportunity to chat with DW for three hours following the talk. He left at 10pm precisely.

I had a 20-minute discussion with DW shortly after 9pm to elaborate on P7. This has the 4 Project timelines from now to Q1 2020.

At the Presentation start, DW oversaw a short silence in memory of Paul Basinski. And acknowledged that PB’s loss had made Icewine 2 progress more difficult than expected.

A specialist group of 6 or more people now undertake the work that PB used to do himself. The volume and scope of this work on both conventional and unconventional is substantial and increasing. It is mostly computer based and includes geology and Seismic information going back a decade and more.

This group are also involved in study and analysis of Icewine 2 and unconventional progress plan.

This hi-tech group is part of the shared activities jointly funded 22:78 by Burgundy and 88Energy as our core JV since late 2014.

IMHO the knowledge base asset could have a book value of $1b in value. That is about US 17c/share value (13p SP)! However, 88E does not put (potential) Asset values into its accounts. Investors should realise that the vast land mass that we lease from Alaska Government only has value based on geological knowledge.

A second sub-contract group / company has also been retained and is also funded 22:78. Texas based, its job is to handle the Farm Out negotiations. This includes options for final sub-lease purchase.

The contracts seem simple in principle, but in practice there is a lot of detail. This includes information from our Knowledge Database, payment terms, land size and valuation, timescales, estimated and future oil resource, and scope of Farm Out field project work.

The current priority is to complete contract(s) for Central North Slopes conventional oil within 2018. The 88E/BEX JV may benefit from up to US$ 20m at contract commencement to cover pre-contract exploration costs.

continued

Lefty,

I thought the Rothschilds made their pile by financing both sides of each war in Europe over the last 200 years. And they wrote the contracts such that the winner each time had to ensure the loser did pay up.

I am sorry to hear of your poor health and wish you the best in any medical way possible.

Phrontist

Tomorrow Brom, I am not at home, but tomorrow I can mention some interesting things discussed with DW. SP might go up.
P

We need a Tier 1 company for area and resource levels of Central North Slopes.

Just noticed, BP are really moving. SP almost £6
MC almost £120 billion (this is MASSIVE)

PE over 19 and earnings/share 31p

They have 30 years experience in Prudhoe Bay.

Taking over our entire conventional AND unconventional would be just what they can do with for more long term growth oil production fields.

Phrontist

BRB1 says - Hope not, any more downward movement could trigger a landslide. :-(

Your mind and body are full of bad vibes not connected with this BB.

The Intellectual Property alone, as owned and continually being developed, is probably worth over US$1b.

It seems Exploration Companies do not assess and value Assets when producing Accounts and Audit.

So, every year it appears the company is spending but not making anything. Part of reason for low SP.

When exploration endeavours finally start to produce revenue, the SP will head skywards.

Our first revenue should be from Conventional Farm Out contract in Dec 2018, being Back Costs.

Our second revenue should be Q2 2019 from Western Blocks asset sale.

Our third revenue could be Q3 2019 from Unconventional Farm Out Contract, being Back Costs

Our fourth revenue is more of a Wild Card, but possibly another Conventional Farm Out Contract for Yukon based on 3D Seismic results sometime during 2019.

Farm Out Contracts include Option to Purchase.

Once the first Farm Out Contract is signed, it will trigger shareholder belief in Asset Value not just on North Slopes Conventional, but on the other Projects as well.

Personally, I feel this business is doing exceptionally well. Activities behind the scenes are going exceptionally well.

Many still suffer from Doom and Gloom on delay in Oil Flow Rate on Icewine 2. Once the reality of Conventional becomes obvious, the unconventional delays will become less of a drama.

Conventional from Western Blocks, Yukon and Central North Slopes now equals Unconventional on Central North Slopes. Further de-risking of North Slopes Conventional during 2019 by Farm Out company could double this asset for 88E.

IMHO 88Energy, its subsidiaries and JV Partners will be growing and developing in Alaska beyond the rest of my life. The first few years are always tough, but BoD have been outstanding in forging ahead, sometimes under extreme difficulties.

Phrontist

TheHappyElf

You say: "Much rather have a tad greedy DW with his new bonus scheme signed off than some of the other AIM directors out there"

Please remove the "tad greedy" because:

The bonus scheme is being advised on by an independent specialist with several of the non-exec directors of 88E.

DW is not in the loop in any way whatsoever. His job is to run the operational aspect of the business. Such personal and personnel issues are generally handled separately avoiding a CEO being caught up in such crossfire that many shareholders are generating.

So, it is fine to praise or criticise this scheme but you should direct your thoughts at the Chairman not the CEO.

Phrontist

Looking at topics like possible / expected revenue stream over next two years can equip shareholders with focused questions for DW.

He is skilled at giving out little. The clever aspect is this, all shareholders in the meeting will have questions focused on the Sept 2018 Presentation document. It is excellent.

But no financial projections of costs and revenues at all. Ultimately, this is what SP is based on.

If the projections are ridden with complications and cash calls, SP will dive. So, keep quiet about it, shareholders will not realise.

Remember, DW works for us. Everyone here is always complaining about low SP. So ask questions that illucidate how 88E management are going to rectify this topic. See if DW is up to this level of communicating.

I think two people are missing from this presentation.

BEX CEO and 88E FD.

Focus your mind on what raises SP in 88E business terms.

Remember also, time is money in business. The company should be able to establish targets and substantially meet them. Shareholders can understand targets and can see when they are met and when 88E fails.

This is a $100m MC company. Proposing to become 10 times bigger. They must show us how.

The time is past when we keep saying there is oil under them North Slopes, we are worth a lot.

Phrontist