Member Info for Phrontist

smiffy I agree with your comments Mon 13:24 and 13:29

mm talks rubbish for the sake of it.

Consolidation and/or Capital Raise relating to shareholders will be a disaster.

The company has been raising cash regularly for this project since 2014

Any small business should set a target for first revenue. That is why we are here.

This target has not been set and is still not set.

OK, a target may be missed, but at least we know what the company is trying to do.

Now there is unconventional doing what and why?
Unconventional reliant on a whole new set of Seismics that have 4 months to run, then?
Yukon Gold, expenditure? Target result? Sell site, do own production, etc?
New JV, this may seem wonderful idea, but we are overcommitted and underperforming.

So, I ask again of BoD:

When will 88E make first serious revenue?
Which project, how get revenue?

We are in 5th year and the BoD seem to be wondering all over the place.

Such a significant Director Payrise was bad judgement by BoD prior to first revenue.

Shareholders need explanations after putting in funds annually into 5th year with no return.

Phrontist

FIFA World Cup is not over yet.

On Saturday 3pm we play Belgium again - for Third Place.

A win will push England up the rankings quite a bit.

And restore some pride after losing to Belgium in our Group.

Also, I hope Croatia beat France, that may also improve our Ranking position slightly.

Phrontist

It is time to keep our cash in the bank, as far as possible.

It is not time to undertake contracts requiring our own cash expenditure.

It is time to use our North Slopes resource to drive contracts forward. Our assets are a massive lever on negotiation with FarmIn companies. The companies that 'get in' with us first will undoubtedly have first options on subsequent full production contracts.

Shareholders will not be impressed with another cash call in 2018 unless at least one beneficial JV/FarmIn contract is signed and progressing.

IMHO, Phrontist

Bad news behind us.
Much work to be done.
Good news ahead of us.

88E fundamentals are still incredibly good.

Last night ASX closed at 2.3c Aus
Exchange of 0.55 to £ gives UK equivalent of 1.28p

We should rise to parity with 1.28p, a modest 7% today is hoped for.
A further 7% is unlikely, but possible giving a possible close of 1.37p

Meanwhile, the Big News we wait relates to JV/FarmIn Conventional and JV/FarmIn Unconventional.

What type of company will we tie in with?

What will the financials of the deal offer us?

What is timescale for Contract Date, work commencement date, oil production date?

Looking forward to progress information on 3D Seismic work.

BoD must be very busy. Negotiation is the key now.

Phrontist

LearningtoInvest, good post.

There are two levels of risk for each of us:

First is the company fundamentals, it is mostly an open book

Second is amount we choose to invest in relation to personal affordability

I am still a firm believer in PB and his strategy of HRZ and the Central North Slopes. Like many LTH ers, my share holding is clearly giving 88E the benefit of the doubt with my investment choices.

But the temporary closing of Icewine 2 prior to oil flow is unquestionably a deep blow. Further, there has been no explanation for failure. No technical reason. Did we drill Ice-2 without knowing the full list of technical reasons leading to success or failure?

I feel we as 88E are teetering on the edge of a precipice.

The BoD decisions in H2 2018 will pull us back or push us over.

It is important to note, 3 of the 4 88E Directors are Non-Exec. They are on-board as advisors, not there to run the business day-to-day. Their CV’s indicate an outstanding experienced team.

DW as CEO is Full Time and runs the business day-to-day. I am sure DW has in depth discussions with Non-Exec guys on regular and as needed basis.

Burgundy has become an unknown to 88E Investors since PB's death. It brings me to tears that he is not here to enjoy this adventure. It also concerns me that such a significant business partner and 88E have not clarified the future relationship. What decisions are now being made by 88E that were previously made by Burgundy?

No one has mentored us on how the new day-to-day contact between 88E and Burgundy will now work out. Has it switched from Technical to Financial? Would Ice-2 have worked if PB was still here? If answer is YES, then what is being done about a technical level PB replacement within our JV? Have Burgundy’s business ambitions changed? There are a few such questions.

My view is that DW is prepared to take calculated risks, and this is necessary in exploration. And he is tempered by caution, he will pull back from the cliff edge when risks are building too fast. The Cash Flow risk in particular.

I think our hands-on involvement in Alaska is coming to an end, at least for foreseeable future. We must tighten our belts and shut down on expenditure to sub-contractors for exploration related activity. (This happened on Ice-2). A Call for Cash could bring 88E to its knees and let in a forced cut price buy-out.

H2 2018 should focus entirely on negotiating Farm In for:

Horizontal up-grade to Ice-2, or an Ice-3 as appropriate, with target date for oil flow.

Conventional oil extraction focused on our first oil revenue and therefore proving over 1bbo on Central North Slopes, with target date for oil production.

Oil production means $ revenue to 88E / BXP. Initially small but proving oil flow.

By the end of H2 2018 we could be back in the money, with SP= anywhere from 3p to 6p.

Phrontist

Mm Who is the 'some' that say Burgundy might pull out? Pull out is odd terminology. Do you mean 'sell out' ? I guess without PB the company is a different beast. Phrontist

Mm Test production does not mean production company. Articles of Association usually include a wider range of related activities. P

Plus BoD and DW have played an honest, straightforward, informative game right from earliest days. The percentage of share sellers is small with excessively adverse effect on SP. But it works other way, when good News is released the SP will do all LTH ers a big favour. Phrontist

I forgot to mention: Be out of 88E shares at your own peril. IMHO. I am not Financial Adviser Phrontist

Ha ha, there is a big difference between Quindell and 88Energy. Having said that, many came out of QPP reasonably intact through the asset sale and 90% Capital Refund. Since then the company has stabilized and has almost £100m in the bank. 88Energy has staggering assets. Our ability to utilize this is limited due to small size of the business. We are a low cost exploration business. We have succeeded in finding oil of two types. We have pushed the exploration and de-risking boat out a long way, and continue to do so. As parts reach the limit of our resources it becomes the time to sell part or all to best offer. The BoD have done remarkably well IMHO over the last 4 years. We are not a Production Company and BoD never guaranteed to reach end of so called creaming the curve. I am pleased and proud of the extensive work achieved by such a small business. Achievements are high for such low expenditure. It is now time to see what part or all of our assets can get. Now and into Q4 2018 following 3D Seismic Reports. The company has considerable cash in the bank, loans and debts cover eachother. As RNS says, position is being reviewed, discussions and negotians are underway. Our main JV BXP have sound contacts in Texas. Normally in business much detail has to remain confidential to protect both parties prior to possible agreement. Phrontist

LearningtoInvest

You describe a perfect position for 88E / BXP. This would be £1 / share.

The oil exploration and production businesses out there are massive and many.

They will make their own calculations based on their own abilities and view of risk.

And how deep their pockets are.

Our little 88E / BXP JV is dwarfed by these giants.

They will take the view, 10bbo mixed conventional / unconventional.
30 to 50 years of production work.

Still some risk, but over time they will steamroller such details as Icewine-2 log-jam.

Some could be operating 5 to 10 conventional production wells during Summer 2019.

IMHO, the company is moving into the Skill Area that DW was born for.
Backed by some excellent Non-Exec Directors.

There is no issue here.

NOT OWNING 88E shares is much higher risk to your investments than OWNING 88E shares.

Phrontist

Small reminder:

88E / BXP Joint Venture had de-risked (partial way) 1.4 billion barrels of conventional oil.

Land holding has more than doubled since then.

Wholesale crude oil price has more than doubled since then.

It is late, I am tired. But simple calculations will indicate 10p per share is low, even very low.

It seems probable that 3D Seismic will capture the attention of big Buyers since conventional is much lower risk. And production is lower cost. And TAP is waiting …..

Phrontist

Fortunately LTHers hold the majority of shares, so their opinions will sway the vote.

Many of the posters on here are likely small holders and happy for 25% profit.

I understand you, several times in the past on AIM I have been in similar position.

Some LTHers have held for over 4 years and will back 88E to recover their potential losses when SP was 5p to 10p.

If there is a realistic chance of exceeding 10p they will hold.

And there is a realistic chance even without Icewine-2

BoD have spread the risk.

Phrontist

This is dangerous times for Long Term Holders with belief in 20p and over.

Because 88E is vulnerable to firm cash offer at, say, 10P or 15p.

I am not fully knowledgeable how AIM, ASX and BoD rules and actions stand here.

But there are circumstances when a firm offer has to be reffered to shareholder vote - Accept or Refuse.

I am very much in favour of at least 50p / share minimum bid.

Offers over £1 / share are realistic if/when Icewine-2 does its job.

But if 88E / BXP fail to recover oil in a commercial fashion by Winter, the company is vulnerable to low cash bids.

3D Seismic on conventional will take over as feature for the key valuation, supported by Yukon Gold and New Venture JV.

BoD are under immense pressure during these Summer months. And they clearly have LTH support.

Meanwhile, as we enter July 2018 month, SP = under 2p is ridiculous.

IMHO Phrontist

sprintman, of course, you are correct.

But for many of the Old Faithful, this Icewine 2 event, low pressure and water flow, is a ball breaker. Ouch.

It is good to chat, hear the variety of opinions. Including olderwiser and others on HotCopper in AussieLand.

This has become a compelling situation, far more so than a Drama film or TV.

This will surely test the mettle of DW and rest of BoD. I would love to be Fly on the Wall of their conversations. Phones and Video Conference. Hmmm.

I just wish PB was here. He was such a liked character, admired and respected. I suspect situations like this excite him and his past colleagues. To him and others, the question is NOT - Will It? The question is How and When, and possibly How Much?

I am going for a walk in the sun. And look forward to early Monday morning.....

Phrontist

WAussie and others, you have gone negative on 88E.

OK, we have hit a barrier.

Remember - there are 1.6bbo to 4 bbo of unconventional as of 2 years ago, before land expansion.

Notice - fracking has been successful in Texas for 30 years or so.

Realise - high technology applied to this oil production method has moved forward immensely.

Interest - in the success of this multi-billion $ oil field is immense.

Just - escalate resources needed (people, equipment, chemicals) until oil flows.

Sacrifice - The £1 / share if necessary with JV from CP, BP, …?

This is engineering - it is rare such a problem type cannot be overcome. Particularly when such massive oil resources are there to be raised and piped.

Have confidence - in our Team

And - have a good weekend, see what next week brings....

Phrontist

Repeat my question earlier in week? What is the Plan?
Summer in North Alaska is short, every day is crucial.

The Big Question is:

Why is Icewine 2 not functioning as plan?

The Big Answer is critical to any steps we take now and any steps a Farmee may take in future.

Have CP or any other company cracked a fracking well anywhere in the region?

Is it / are they also HRZ, or similar to HRZ?

Does our problem relate to specifics on Icewine 2, such as two layers of HRZ, one above the other?

I must be honest, my confidence in BXP / 88E is weekend with the loss of PB.
This type of problem is PB's bag, his lifetime of education, experience, contacts, etc.

I read somewhere that 90% or so of all oil produced by fracking is in Texas locality.
This experience and knowledge will feed from/to the major production companies, freelance explorers, sub-contractors, Universities, high tech equipment makers, etc. all from that region.

I am sure Eric, Dave, The Team, are working on Icewine 2 like there is no tomorrow.
They all deserve praise and support.

I would be talking to Conoco Philips right now.
Or company with similar profile from Texas fracking world.
With strong finances, a history of resolving Icewine 2 type technical problems.

No question the HRZ can yield its oil, but what conditions are suitable and best?

Obviously 88E staff communicate with Burgundy owners and staff.
What can Burgundy offer? It is they that started this whole project.
What action do Burgundy recommend?

Phrontist

I think possible early Monday morning on ASX
This gives 4 days working for possible progress.

If not, early Tuesday morning on ASX for 5 days.

A statement on progress and plans for Icewine 2 is key to all shareholders.

Maybe water flow has raised itself to over 100 bpd?
Maybe planned agreement on Farm In partner for Horizontal upgrade to Ice 2?

Drill a horizontal pipe through middle of HRZ layer with fresh look at chemicals to use. Etc.

We are not the experts. This is far more complex than we imagined.
Yet the answer could be quite simple.

Phrontist

Difficult times for BoD. I feel they have been wise since Icewine 2 difficulties last summer. Eventual successful fracking across our Central North Slopes is a dead certainty IMHO. But when has become the question. The 3D Seismic to open up conventional is inspired move. Our SP shows zero value for unconventional at this moment. And it is also low for valuing conventional. Q3 2018 computer mapping results will be welcome. And this to be followed with Q4 2018 Farm In contract will conclude a great 2018 year for the JV of BXP and 88E. Meanwhile, we should not underestimate the substantial advances made with our unconventional venture and the ultimate prize for loyal LTH. Phrontist

We still have 9 or 10 weeks to work on Icewine 2. We are in very early stages. All the speculations and analyses are interesting. But we know nothing in shareholders world. Geophysics, fracking, chemical engineering, on-site grafters. Many people will be thinking this out. I remain open minded and positive for success during this summer period on Icewine 2. Phrontist.