The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Thanks for your comments, come back tomorrow to justify your comments. By the way buys and sells are all in blue. I have added another million. I just get the feeling that it’s going to turn around tomorrow being the new ISA YEAR commencing on 6 April , which is a Saturday. 88E is going to be good in 2024, my gut feeling. Looking forward to the next RNS , next week onwards. HOLD YOUR BREATH and let MM’s play their games. EEENF CLOSED AT 0.050 last night and the weather in Alaska is - 28c, kinder than last week. GLA HOLDERS. We deserve good returns from this one😎💊👀🚀🚀😊
I think MM’s done there tree shake for the day . We’re in auction now at the opening price, won’t take long for it to move back on to where we started it. Some rumours of a webinar, don’t know the exact date, if true then we would know why the tree shake this morning. We have still 10- 15 waiting days; I am holding my golden ticket until the next result and that’s my choice, should be ticking up soon!💪💪🦾🦾🚀🚀
How did 88E’s first flow test results stack up against our expectations?
We published our expectations for 88E’s flow test results in our last 88E note: What Success Looks like - 88E’s Pathway to Commercialisation.
Our expectations were based on the flow rates 88E’s neighbour Pantheon Resources was getting at its wells immediately to 88E’s north.
Today’s result sits right in the middle of our base case expectation at 70 BOPD.
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(Source)
The results also sit in line with other vertical wells drilled by 88E’s much larger neighbour Pantheon Resources.
Pantheon across its three tests produced between 45 and 108 barrels of oil per day.
AND during the ~4 year period when Pantheon was delivering those flow test results, its market cap was at one point was almost ~A$2BN...
So even though 88E has managed to deliver results as strong as Pantheon from a vertical well flow test - its market cap is much less...
(not to mention 88E’s Namibian assets... which are similar to the TSX listed Recon Africa - more on that one later)
Right now Pantheon is capped at ~A$524M - whereas 88E is capped at ~A$150M.
Upper SFS flow test results
A 20ft perforated interval in the Upper SFS reservoir was stimulated via a single fracture stage of 241,611 lbs proppant volume. The well was cleaned-up and flowed for 111 hours in total, of which 88 hours was under natural flow back and 23.5 hours utilising nitrogen lift.
The USFS test produced at a peak flow rate of over ~70 bopd. Oil cuts increased throughout the flow back period as the well cleaned up, reaching a maximum of 15% oil cut at the end of the flow test program. Oil rates and cut would have likely increased further should the test period have continued. The well produced at an average oil flow rate of approximately 42 bopd during the natural flow back period, with instantaneous rates ranging from approximately 10 - 77 bopd with average rates increasing through the test period. Importantly, the USFS zone flowed oil to surface under natural flow, with flow back from other reservoirs in adjacent offset wells only producing under nitrogen lift. A total of 3,960bbls of fluid was injected into the reservoir and 2,882bbls of water was recovered during the flow back period, most of which being injection fluid. Total flow rates (inclusive of recovery of frac fluid) averaged ~600 bbl/d over the duration of the flow back.
Multiple oil samples were recovered with measured oil gravities of between 39.9 to 41.4 API (representing a light crude oil).
Additionally, some NGLs were produced but not measured, as was anticipated in the planning phase. The presence of NGLs was demonstrated by samples from the flare line and by visible black smoke in the flare. Historically, NGL prices on the North Slope of Alaska have been similar or slightly below light oil prices and are therefore considered highly valuable. Further work is required to quantify the exact volume of NGLs, which 88 Energy intends to include as part of a maiden certified Contingent Resource assessment at Project Phoenix for the SFS reservoirs
It’s not a question of “if”, it’s how much is down there- the fact that we have got the oil in SMD , is proven, just need to know how much? Fill your boots 🥾 and wait for the flow test RNS, like we the investors waited for this one. One does need the nerves made of steel, it was a long waiting over Easter Weekend for this one. GLA✈️✈️✈️👀🚀🚀🚀
What raise? The AGM is on 13 May, the results are due from next week onwards. If the results are good or excellent then plenty of time before the AGM to get out of it, no need to stick around until May 2024- strong buy in my opinion especially at this price🚀🚀🚀
I have added a few more, looking forward to next week or end of April.
The company has let the cat out by mentioning the INSERTION. ONE NEEDS SOMETHING TO HAVE JOINT PARTNERSHIP, that’s the clue, sell or buy more is one’s choice😊
Re- Insertion of proportion takeover provision: It’s a very good proposal ie the company is looking forward to times , if and when the need arises to have a partner, possibly after good flow results , in order to develop further, they will need a JV. Why panic selling, this is what the MM’s want, why not wait until the full flow tests and that might be just at the end of April. It’s my opinion , sell or hold is individual choice. GLA until next week or beyond.