Member Info for Phrontist

Doing this on my mobile is always error prone.

A slight adjustment....

Number shares 17.5 billion approximately

Size of Hickory-1 commercial oil resource to 88E below is $1.750 billion selling forward at 3%

$/share= 1.75/17.5 = $0.1 = 10c = 8p/share

Phrontist

Hickory-1 has current estimated resource of 650 million barrels of oil (DYOR) mean average to 88E. This is 5% of Prudhoe Bay's output to date.

This is a staggering good place for owners of Hickory-1 to be.

Tests so far indicate 12% to 16% porosity, by far the best oil level found by 88E in it's 8 year lifetime.

But note, there are other factors before the magic Commercial word can be used. These factors should be assessed in the upcoming Oil Test on four strata.

If results are good, extracted oil can be 'tanked' and delivered to the nearest TAPS offloading point, a few miles north up the Dalton Highway.

Success can lead to selling this resource area for 3% of $90 X 650m = $1.75 billion.

DYOR because this number seems quite incredible.

It is about $9 per share=£0.55 (55p)

So, 88E are doing well so far.

Be happy for them and us, and just a little more patient.

Hope for about 15 bagger.

And it is only part of Accumulate Energy which is only part of 88E.

Phrontist

15:31 accounts, ha, they can reveal good points and equally cover up bad points.

No core debt is generally a good sign and substantial core debt is a bad sign. But other factors come into play.

The question with large debt is how able is the company to pay it off?

First answer is to look at size of annual Sales and size of annual Profit?

S4 last year had Sales of £1b and have never made a quarterly profit.

WPP last year had Sales of £14.4b and most quarters make a profit.

Then compare size of loan debt and compare.

One can see that over time WPP can pay off the debt , no other factors required to change.

S4 cannot pay off the debt unless they make profits and which likely requires increasing sales whilst keeping costs level.

This is something they have not done before and therefore has higher risk than WPP needing to hold the ship steady.

S4 have not been specific in how they expect to do this.

This is just an initial look, you would have to study the accounts in more detail to other pros and cons that affect the timescales for each.

Phrontist

12:43 you make my point

Directors are suggesting a dividend

whilst

Shareholders keep away due to unforecast debt

Phrontist

13:44 88E SP is GBX 0.330 meaning:

0.33p or:

£0.0033

Phrontist

14:27 go to 88energy.com

They have a number of well presented documents issued over the last year providing good information building up to the expected Oil Flow Test early 2024.

Phrontist

Error 2 should be:

Make an issue on a USA Stock Exchange

Not sure why that changed....

ashley may be reviewing a double whammy in late 2024 made possible if the early 2024 oil flow test results are substantial:

1 do a 100:1 share reduction (eg 15b becomes 150m)

2 make an issue on a usa **************

usa investors will be more attracted to 88e buy/sell under us law in usa $ currency using us broker.

dyor for the technical possibility of this.

phrontist

Us little UK and Aus shareholders could soon notice that 88E has big strategic value to the USA and USA based oil production giants such as Chevron, Conoco Phillips, Exxon Mobil.

Alaska are desperate to find new oil sources noting the TAPS is under 50% utilised.

USA is desperate to ensure is still vast annual oil consumption is supplied from USA based resources.

War with Russia through Ukraine.

Potential war with Arab States due to Israel situation.

The global trade situation becoming dire China clearly planning to take Taiwan.

This is the worst I have seen in my life (long).

So, 88E just has to create good oil flow with projection of potential oil resource in our original Alaska property, for SP to go BOOM

Phrontist

18:48 - you say - once a year a 50 day operation.

You imply during the other 300 or so days the company is not active. This thinking 🤔 is fundamentally incorrect.

There are sample tests, 3D Seismic tests, the collection of geological information from other parties (PANR + etc) and historical sources.

Then integration and analysis, endlessly building knowledge of underground geological patterns, working out where the best oil resources are.

A big plus is, 88E has explored and researched a substantial region south of Prudhoe Bay and slowly the pictures take form to guide us to the first commercial find.

So, following a successful Flow Test over the coming months, where does that leave 88E's options?

One is, a substantial Oil Production company will make a bid for 88E as a whole, or just to buy Accumulate Energy.

Plenty of positive possibilities to think about coming into 2024 IMHO.

Phrontist

12:57 - how can S4 start paying a dividend when the Loan Debt pile is still increasing?

I feel that 88E's strategy is spot on.

Zero debt, no plans to borrow.

Small revenue underway in Texas.

Careful technical study across the board of all projects in Alaska.

Hickory-1 at the front of field work plans with Flow Test commencing early 2024. The project seems well planned and strong chance of success. This could move the SP up and hold to support a Cash Call of a reasonable size.

Ashley is managing good, what else could be done at this stage?

I felt DW would annually dash from one project to another without prior extensive investigation, just gut feel.

Nothing is guaranteed in exploration but Hickory -1 could definitely become a commercial site and not too far from the highway and pipeline.

In summary, the SP downside is low and the upside is good, even high.

ATB Phrontist

If the government take 35% of the shares then when the BoD make a Cash Call on shareholders, the government will have to find 35% of the Cash Call.

Clearly the government will refuse to pay since they don't have spare money. So then shareholders are unlikely to pay up making the companies growth destroyed.

The last accepted two trades were Sell of 65,000 shares total after the Close of Business at 16:30.

For some strange reason these very small Sell trades dropped the SP from 0.35p down to 0.30p, about 15% drop.

Other factors aside, tomorrow at 08:30 the SP is likely to be 0.35p.

SpaceX satellite/internet system has definitely helped Ukraine a great deal.

Without going into details, Microsoft, Amazon and Alphabet have all assisted Ukraine relating to high tech solutions.

They and many big business companies have gracefully buried these costs in their accounts.

It is reasonable to speculate that as and when Russia undergo the final humiliation, western economies will return to significant growth, and S4 SP could well do a 5-bagger in rapid time.

WPP down 35%

SFOR down 55%

Saatchi down 65%

Perhaps if the big S4 expansion program had started two years later then they would be starting with the advantage of hindsight, able to buy up 30 companies at a fraction of the price.

Who could have predicted the COVID endemic immediately followed by Russia military aggression and Chinese spying with decieptfull trading practices.

P

Answer: it is likely that the 88E north slopes area contains more commercial oil than the PANR area north of the 88E area. But both could turn out good 💯😊

Why suggest a possible annual dividend when sitting on a £100+ million cash debt? There should be a commitment to substantially reduce debt.

Chester2, I smile 😁 and admire your patience.

This oil flow session will be the 7th major operation for 88E since start of 2015.

This is our 9th year.

And this well has already indicated 9% to 12% porosity which is better than the previous 8 years of mucking around with underground mud.

We have zero debt.

Plenty of cash in the bank to accommodate this oil well test and maybe even get a tanker or two of oil 🛢️ to sell.

The possible commercial oil find is substantial.

If the oil flow is excellent (I not quantify) then the SP could hit 3p, even 5p. And report evidenced as a strong commercial well for continued development.

With a very positive report, 88E could raise some REAL cash. Instead of £6 million it could be £30 million.

This is what the company really needs for a Production Well with lateral pipes.

But don't quote me, I am not an expert.

This time is it worth hanging onto our shares right through this oil flow test? Making the big break?

I think so. The signs are better than any of the previous 8 years.

Phrontist

The_Bishop, thank you for comment.

Well, the company is worth what the shareholders decide, just with share Buy & Sell.

Like the Auditor with at least one qualifying statement, I can't see it.

All the revenue came from HK and China customers.

The plan is to get UK and Europe customers.

Maybe they are VERY CLEVER people.

P