Member Info for Phrontist

It is quite possible for BXP / 88E to receive an acceptable bid for AEA in Q4 2018. Of course, Ice-2 FRT must have been good and 3D Seismic analysis must be good. The companies hold a substantial amount of geological information on our Central North Slopes Regions. PB had discovered the Sweet Spot, an underground HRZ plane right across our region. The situation of a Big Player wishing to buy AEA could become very competitive. Bid Acceptance could be inside 2018, with final payment in Q1 2019. This type of situation was always The Plan of PB and DW. Phrontist

Reaper007, The figures are there to be checked, discussed, argued about, adjusted. I am not claiming it is 100% accurate. Phrontist

Reaper007, The figures are there to be checked, discussed, argued about, adjusted. I am not claiming it is 100% accurate. Phrontist

Important point to add. This calculation means shareholders still own their 88E shares. 88E still owns Yukon Gold site. As a successful company with $1b in bank, the SP should be over 30p / share. Phrontist

Accumulate Energy Alaska (AEA) are the owner of our joint 88E / BXP leases and operator of our business in Alaska. Yukon is owned separately by 88E, not considered here. Assume we have recoverable oil = 3 billion barrels Assume average sale price per barrel = $80 Typically takes up to 30 years to recover all oil. The oil price will rise over the 30 years. It is possible we sell AEA to a Production Company (eg BP, CP, etc) Total revenue to Production Company (buyer of AEA) = $240 billion Cost of production / barrel = $30 Total Gross Margin to Production company = $50 x 3b = $150 billion The way this Oil Asset is valued will have many variables, such as: Efficiency of production machinery to extract Ease of access and ease of oil removal from site Security and safety within region Weather conditions Prevailing tax demands Quality of extracted oil Economy of scale (density oil / acre) Let us suggest 10% of estimated Gross Margin is reasonable estimate of Land Sale price / value. Sale price of AEA = 10% x $150 billion = $15 billion. Attributable to 88E vs BXP = 60% vs 40% (estimate by me) 88E revenue = 0.60 x $15b = $9 billion Number shares in issue = 5.4 billion Assume 88E retain 10% of revenue for ongoing operations Capital Refund / share = (0.90 x $9b) / 5.4b = $1.5 / share The 3b barrels was an estimate several years ago. Our land leases have increased 2.5 times Further exploration and de-risking has / is occurring It is possible the total recoverable oil resource is 4 x 3b = 12b barrels Revised Capital Refund for 88E shareholders = $6 /share IMHO Phrontist

Who knows? No one. For LTH ers it does not matter. It is FRT results that decide much of our future at this stage of 88E life. June belongs to HRZ.... Phrontist

You never know the reasons why individuals BUY or SELL. Some people have some cash to invest, and if they lose it there is no immediate detrimental effect on self or family. They follow opportunities on AIM or elsewhere. Or become LTH'ers. Some people invest cash that they will need in medium to long term eg retirement or pay off mortgage. LTH'ers. Some people borrow money and have to pay it back short term. And so on, meaning every BUY and every SELL has a personal story behind their timing and decision. Then, of course, each individual has a personal view on 88E prospects and risks. Short term, medium term, long term. At the moment 88E has exciting projects in motion. Buy now at high risk and high gain. Buy later at low risk medium gain. etc. To my mind, the game changers are bigger investors, business investors, fund managers. These people are mostly medium and long term. It is the BUYs and SELLs of these transactions that matter. It is these ones that will drive SP up or leave the SP to struggle endlessly in the Short Term Traders market. It seems very likely these Investor types will pile in when we have good FRT results. They will pay more for a definite picture of the long term outcome. And to avoid expensive 88E Money Raising from shareholders. Between now and end June (FRT results) some large Investors may BUY in. But 88E history indicates most will wait for the Dead Certain existence of post-FRT. Catch the SP at 5p or 7p, you can hang on for a possible 10 or 20 times gain with little downside risk. Phrontist

Brom, the scene seems set for a successful run to end of 2018. I feel DW and BoD have put in relentless planning and managing on all fronts. I guess to show 88Energy is a fantastic business even if Ice-2 needs more time. The scene seems set for Farm-In on Conventional leaving 88E to continue with unconventional. Maybe. If FRT is good, will they continue with a horizontal? Thing is there is a lot going on now, I am truly impressed. DW and BoD always say, they keep options open until decision times are ready. I think the most important step for Ice-2 is to produce some oil of a high grade. It may then produce great FRT or take longer to work out the complications of the Ice-2 well. But producing some oil is very important. Of course, I still guess FRT produces 288 bopd. Then many BIG Buyers will be vying for a slice of our Black Gold Cake. Phrontist

Maybe Flow Rate will be 288 bopd? Best wishes to LTHers, this has been a well deserved day, and past week. Everything at BXP and 88E looks solid and under control. I think PB has left LTHers a present, soon to be revealed. Phrontist

Only 9 mins to go, Phrontist

Who knows? Not even DW. But he may issue a Progress Report to keep us informed. I would say, regardless of the Closing Price today, the Opening price on Monday will be higher. Phrontist

PT, that is a nice Email exchange you had with Paul B. ))) He has been completely dedicated to this project, I think for 8 or more years. He gained his fracking experience working for Conoco Philips on the Eagle Ford project in West Texas. I am not sure of the details, but he was one of, if not the one, original motivators for CP to start the EF Project. He stayed with it for 25 years or so. His experience is extensive and detailed in the world of exploration and production of fracked oil. A few dozen shareholders have met PB a few times at City Presentations. Having conversations with him is a great experience. I still find it difficult to believe that PB died through medical ill health reasons. To us, he is an honest person, and generally right. Ha. Exploration Companies are renowned for ambitious and risky projects. We are in part of this world. BXP with 88E as partners, have stepped through the de-risking process in what appears to be a number of sensible and manageable steps. This reduces risk substantially. So, now we are likely to produce our first few barrels of oil by 11th June. That being successful, a full Flow Rate Test with following two weeks. PB's experience and guidance has been with us every step of the way. For me, the 50/50 stage has been passed. A successful June is as near 100% likely as anything in industry. I am confident 88E with DW have planned for all likely situations to complete this importent few steps with much success. Guessing the FRT figure has been heated discussion in the past. We must remember that Icewine 2 is a Development Well not a Production Well, so my assumption is that over 200 barrels/day is unlikely. But following 9 months of soaking under enormous pressure, over 120 bopd seems very likely to my mind. My shareholding suggests near 200 bopd. ))) Wishing all LTH's the very best. Phrontist

garrym, I have been an electrical and electronic engineer all my life with industry and academic employment. I used to teach global energy - power generation methods, electrical distribution, environmental impact, and power consumption trends. A big plus for electricity is that Alaska just has to route its cabling to connection point(s) on the USA Super Grid. And Canada Grid as well. )) Electricity generation and distribution works better in a very cold place. That is it. No pipelines, tankers, storage tanks, etc. Reduced refining costs. Just distribute via the USA electrical distribution infrastructure. Alaska Government would like this, because the power generation in Northern Alaska would need significant employment. They would need to take a lead on planning, the environment and encouragement. But many big global players could move in from the manufacturers of power generators such as Mitubishi and General Electric. This would add to Alaska inward investment. Land cost is cheap and plentiful. Taxation would be very competitive but massively beneficial for Alaska economy. As many say, it is a no brainer! (brain not needed to say YES). Phrontist

Alaska could become the USA's supplier of oil, gas and electricity for next 50 years. Central North Slopes can be a big player in the strategy. US$ 25 billion seems a fair price to me. The cost of buying Accumulate Energy Alaska Inc. Phrontist

88E / BXP is not the only player in Northern Alaska, obviously. There could be a substantial increase in oil and production in the region over this coming 30 years. The most economic and flexible method of distributing energy from source to Users is by high voltage electricity. The scale of oil and gas in Northern Alaska warrants construction of hydrocarbon to electricity power stations. And 'shipping' the energy to USA States using electrical transmission as opposed to oil pipelines and shipping tankers. Technology of efficient clean power generators has also improved dramatically in last 10 years. Accompanied by ease of manufacture, high reliability and much lower cost. Electrical Generators run 24/7/365 with low maintenance. Laying out high power cabling is not expensive. Just more thoughts IMHO, Phrontist

88E/BXP seem to be coming to fruition at the same time as signals on Global and USA Economies are looking up. In particular the US economy. Trump tax and import duty changes to motivate US based business are having strong effect. And this is early days for his time at the White House. Bringing steel and aluminium production back into USA will require oil consumption on a grand and long term scale. Oil price is rising and many suggest US$ 100 is strong possibility by end 2018. Reduced production by Saudi and Russian countries combined with planned lock-out of Iran oil will guarantee the $100 mark. Perceived costs of fracking production are declining based on advances in technology, particularly with multiple lateral (horizontal) drilling and multiple vertical wells on the same conctrete base. Expected production costs could be as low as $30/barrel. So, the Gross profit margin could be the best the oil industry has ever seen. $100-$30=US$ 70 / barrel. Almost 500 square miles of Central North Slopes could produce a quarter of a trillion US$ of gross margin. $250 billion. If sale price of the total is 10%, that means $25billion revenue for 88E/BXP. OK, I may be accused of a little ramping. This is the higher end of possibilities for us, agreed. But a year or two ago, finding someone to fork up $10billion would have been a tough job. With current global and US trends, raising $25 billion is becoming a regular event in the world of takeovers and big business deals. IMHO 88E / BXP are looking for a complete sale deal by end of 2018 if the opportunity arises. Otherwise the company will be hit with low ball bids every month, forcing share holder voting Yes/No and generally disrupting the BoD towards their hoped for goal. Just some thoughts, all IMHO, Phrontist PS it is great to see such a happy shareholder board as today. )))

I have to smile when you say: �.just 97.6p to go... For �1 party. Ha ha. It has taken four years to go from approx. 0.50p to 2.40p Let's hope the growth trend will be exponential and not linear, latter being over 40 years. ((( Phrontist

Reaper, I agree. Can HRZ be made to produce even one barrel of commercial quality oil? What sustained flow rate can be achieved, acknowledging that Ice-2 is an Investigation well not a production well. Taking this into account, what is maximum as limited by the well geometry: What is the maximum as limited by the fracked and soaked HRZ chemical properties? Phrontist

The key is knowledge of chemical engineering processes 11,000 feet down. Temperature of 120C or so (stand to be corrected) Pressures of 9,000 bar or so (stand to be corrected) Starting with hard rock that is supposedly soaked in oil (Icewine 1 samples as evidence) Blast a series of fractures in the pipe matching expected HRZ vertical height and position Added 1 million gallons of proppant under considerable pressure to force through fractures Let this soak and react as it will for 9 months What is chemical composition of the rock itself in the HRZ layer? Will such proppant, temperature and pressure cause the rock to yield its oil? Is the rock just cracked or is it softened, if so, how softened. Think of clay, at room temperature and left for a few weeks. It dries out into a hard rock form. Soak it in warm water, it will soon become soft mushy material again. Conditions at 11000 feet down in Icewine 2 are extreme. The combined temperature and pressure are putting energy into the rock. This energy will change its form, possibly mushy, enabling oil to be forced out and rise based on lower density than water. If these suggestions are happening, oil will be produced as expected. There should be nothing to worry about. in June with FRT I am no expert, I do not know facts. Does anyone know HRZ composition? Does anyone know what happens in chemical process at Eagle Ford, for example? Garry, it is nice to read your posts. It raises more questions in my mind. Of course, we can disregard a need to know techical info, and just wait for results. I would like to know more. Phrontist

Brombard. I am not suggesting anything. I have asked a simple question. Perhaps you can answer the question? Phrontist