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88E 88 Energy Limited

0.2605
-0.0195 (-6.96%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
88 Energy Limited LSE:88E London Ordinary Share AU00000088E2 ORD NPV (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  -0.0195 -6.96% 0.2605 123,445,618 16:35:25
Bid Price Offer Price High Price Low Price Open Price
0.255 0.26 0.265 0.2475 0.2575
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs AUD 3k AUD -70.72M AUD -0.0028 -3.57 251.24M
Last Trade Time Trade Type Trade Size Trade Price Currency
17:08:42 O 1,000,000 0.2605 GBX

88 Energy (88E) Latest News (7)

88 Energy (88E) Discussions and Chat

88 Energy (88E) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2024-03-28 17:08:420.261,000,0002,605.00O
2024-03-28 16:35:250.267,30019.02UT
2024-03-28 16:29:470.263,871,3379,988.05O
2024-03-28 16:27:500.26581,3951,500.00O
2024-03-28 16:26:360.26754,2631,946.00O

88 Energy (88E) Top Chat Posts

Top Posts
Posted at 29/3/2024 08:20 by 88 Energy Daily Update
88 Energy Limited is listed in the Crude Petroleum & Natural Gs sector of the London Stock Exchange with ticker 88E. The last closing price for 88 Energy was 0.28p.
88 Energy currently has 25,124,062,567 shares in issue. The market capitalisation of 88 Energy is £251,240,626.
88 Energy has a price to earnings ratio (PE ratio) of -3.57.
This morning 88E shares opened at 0.26p
Posted at 21/3/2024 09:30 by herecomesthesun
BLIMEY

===================================================================================
Nigoil - 27 Jan 2020 - 14:57:21 - 44383 of 111411 RKH - RKH
Selling Rkh shares at this present time is not a good idea
===================================================================================


share price was 18 pence back then and went all the way down to 4 pence


CRIKEY that's a worse track record than purple


but you are right on one thing Nigoil

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Nigoil - 23 Jan 2020 - 20:57:53 - 44327 of 111411 RKH - RKH
It's all the story telling, lies and deceit they use in the pursuit of making money I can't abide, simples!
unfortunately it's the naive investors who end up feeding the traders greed.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++



it is all the story telling, lies and deceit used in the morally corrupt pursuit of fleecing others of their money that I can't abide with


88E might well turn out to be the kiddy but others should know


Nigoil is a lying deceitful morally corrupt story telling TRADER


FACT


bwahahahahahahahahahaha :)
Posted at 21/3/2024 08:05 by nigoil
PPP share price now 1p, if anyone had followed purple11 advice when they were 2.3p to buy, they would be now massively down!

Good job for purple11 he sees them as a long term investment!.... LOL

88e is the kiddy!

Simples!.... :-)
Posted at 15/3/2024 09:43 by the skipper
Let’s stay grounded folks. The cup and handle formation which is playing out on the chart suggests a target price of around 0.45 to 0.5 upon a positive outcome of the first flow test. If the share price can consolidate around there prior to the second flow test then we can talk about this heading to the stars, with stronger flow rates being likely owing to increased pressures at greater depth.
Posted at 22/2/2024 08:34 by talais
At Project Leonis we will be watching out for:Maiden prospective resource estimate (H1 2024).Farm out progress (2024) - 88E's plan is to farm out the project ahead of a drill program in either 2025 or 2026.88E's onshore Namibian asset - next in lineIn November last year, 88E announced a farm-in deal for ~18,500km2 of onshore acreage in Namibia, Africa.The deal, once completed, will see 88E farm-in a 45% stake in the project.We wrote about 88E's Namibian acquisition in a previous note here: 88E heading to Africa on frontier oil hunt - following Shell and Totals 11 billion barrel lead.We like 88E's Namibian project because:Huge ground position - ~70x the size of 88E's Project Phoenix in the North Slope of Alaska, USA. The project is large enough to host a large resource base.Namibia's fast developing oil and gas industry - recent giant discoveries offshore by TotalEnergies and Shell have put Namibia on the map. Namibia being touted as the next Guyana where US supermajors Exxon and Hess are making discovery after discovery.Next Investors ImageNamibian onshore peer re-rated by over 40x - ReconAfrica drilled its first well at its onshore Namibian project back in 2021. Between 2020 and 2021 Recon's share price went from CAD$0.30 to CAD$12.50+.
Posted at 14/2/2024 17:35 by talais
-- Burgundy Xploration, LLC (Burgundy) has secured US$2.0M in initial funding that has been agreed to be paid to 88 Energy immediately in part settlement of outstanding cash calls-- 88 Energy has agreed to a standstill of the default until 31 January 2024 for Burgundy to pay the remaining outstanding amount-- If Burgundy is unable to cure and pay the remaining outstanding amount in full by 31 January 2024, 88 Energy will receive 50% of Burgundy's working interest in Project Phoenix -- Burgundy remains committed to funding their share of the Hickory-1 flow test program -- 88 Energy is fully funded from the recent Placement and receipt of these funds and is focused on delivering the successful flow testing of multiple reservoirs at the Hickory-1 well in Q1 202488 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or the Company ) is pleased to advise that it has received US$2.0 million in funds from its Project Phoenix JV partner Burgundy Xploration, LLC ( Burgundy ) as part settlement of the US$3.745 million in unpaid cash calls (represented by US$3,452,967 in relation to outstanding cash calls due plus interest of US$292,505).The Company via its 100%-owned subsidiary Accumulate Energy Alaska, Inc ( 88E-Accumulate ) has also entered into a further standstill agreement with Burgundy which provides additional time for Burgundy to cure and pay the remaining outstanding funds due of US$1.745 million by 31 January 2024. If Burgundy fails to pay by this date, Burgundy will immediately transfer to 88E-Accumulate 50% of Burgundy's working interest in all of Project Phoenix's Toolik River Unit leases (or a pro rata amount of Burgundy's working interest if Burgundy pays some but not all of the outstanding cash calls amount by 31 January) ( Transfer interest ).Burgundy will also within 5 days after 31 January 2024, sign and return the Hickory-1 flow test AFE at the revised working interest level post the Transfer interest. If Burgundy has not made payment for its share of the AFE cost within six months after the due date of the AFE cash call then Burgundy will transfer 50% of its remaining working interest in the Toolik River Unit leases, post the Transfer interest.The Company maintains its rights under the joint operating agreement should Burgundy not be able to pay any future cash calls, including exercising the option to require Burgundy to relinquish its working interests in Project Phoenix and the joint venture.Burgundy continues to support the progression of the upcoming Hickory-1 flow test program, and it has informed the Company it intends to fund its share of the flow test program .
Posted at 16/12/2023 07:10 by purple11
88 Energy Limited Acquisition of Texas Oil & Gas Production Assets (8904W)
15/12/2023 7:00am
UK Regulatory (RNS & others)

88 Energy (LSE:88E)
Intraday Stock Chart


Friday 15 December 2023
Click Here for more 88 Energy Charts.

TIDM88E

RNS Number : 8904W

88 Energy Limited

15 December 2023

This announcement contains inside information

15 December 2023

88 Energy Limited

Acquisition of Additional Texas Oil and Gas Production Assets

Highlights

-- Expanded footprint in Texas Permian Basin with acquisition of further non-operated working interest in leases and wells with conventional onshore production and development opportunities.

-- 64.4% net working interest (WI) acquired by 88 Energy in 1,262 net acres, located 1/2 mile south and 1/4 mile north of existing Project Longhorn assets (Longhorn) connecting the acreage position.

-- Joint Venture partner and Operator, Lonestar I, LLC (Operator or Lonestar), also acquired a 21.5% WI in the new assets with remaining WI retained by existing non-operated partners.

-- Purchase price of US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC (Bighorn) which comprises of Longhorn Energy Investments LLC (LEI) a 100% wholly owned subsidiary of 88 Energy (75% ownership) and Lonestar (25% ownership).

-- Attractive low-cost entry of US$0.33 per BOE based on the independently certified net 2P reserves position of 0.68 MMBOE(1,2) .

-- Nine (9) low-producing existing wells (26 BOE/day gross) and 10 development opportunities with potential identified in multiple zones and classified as Gross Undeveloped 2P Reserves (1.2 MMBOE(1,2) ), along with Contingent and Prospective Resources which are yet to be quantified.

-- Coupled with the additional acreage announced in July 2023, Bighorn has reviewed its development opportunities and will now target lower-cost workovers ahead of new drills. Bighorn has approved 5 workovers to be completed in 1H 2024 and upon successful execution are expected to increase production to 180 - 220 BOE gross per day (75% oil).

-- Once the workovers are completed, Bighorn will consider for approval the 2 new production wells, as previously announced, in 2H 2024, which are expected to increase production by an additional 160-200 BOE gross per day (75% oil).

-- Upon successful completion of the workovers and new wells across its acreage, together with the existing producing wells, 88 Energy expects Longhorn total gross production to reach approximately 600 - 675 BOE per day (75% oil) by year end 2024.

-- The new acreage contains 2 injection wells that will be assessed for restoration so that Bighorn has optionality for water disposal, particularly as production increases when new wells come online.

-- Bighorn recently secured a US$5 million line of credit facility to assist in cash flow management associated with the development opportunities.

(1) Refer to page 3 for initial reserves estimates and assumptions.

(2) Net Revenue Entitlement to 88 Energy.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or the Company ) is pleased to announce the execution of binding agreements for the acquisition of a new non-operated working interest ( WI ) (64% net to 88 Energy) in leases and wells with conventional onshore production and development assets within the Permian Basin of Texas, U.S.

The new oil and gas production and development assets (Bighorn Phase 3) will form an extended footprint with the initial assets acquired in February 2022 (Bighorn Phase 1) coupled with the new assets acquired in July 2023 (Bighorn Phase 2), all together known as Project Longhorn ( Longhorn ) as shown in figure 1 below. The new acreage is located approximately 1/2 mile south of Bighorn Phase 1 and 1/2 mile north of Bighorn Phase 2. The newly acquired acreage is estimated to contain independently certified net 2P reserves of 0.68 MMBOE (1,2) .

Figure 1: Project Longhorn acreage

Importantly and alike to the July 2023 acquisition, all proposed well locations have been classified as low-risk, accessing net Proven reserves totalling 0.56 MMBOE (1,2-) , given the production histories from existing wells on the newly acquired leases as well as adjacent leases. The development opportunities should intersect multiple potentially oil-bearing intervals which have been successfully developed in the vicinity of Longhorn and the upside has been identified and classified as Contingent or Prospective Resource and will be quantified.

Purchase price of US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC ( Bighorn ) which comprises of Longhorn Energy Investments LLC ( 88E-LEI ) a 100% wholly owned subsidiary of 88 Energy (with a 75% ownership interest) and Lonestar I, LLC ( Operator or Lonestar ) holding a 25% ownership interest.

The acquisition provides 88 Energy with additional flexibility over development capital opportunities including 4 lower-cost workovers (Bighorn CAPEX of US$800-950k/each) along with 6 new drill targets to accompany at least 14 new drill targets on existing acreage.

Bighorn has agreed a forward capital development program as part of its 2024 WP&B which includes 5 workovers in 1H 2024 and contingent on successful workovers, 2 new drills in 2H 2024. The 2 new wells (on leases which Longhorn has a 75% WI), are each anticipated to deliver IP30 of approximately 80-100 BOE per day gross (75% oil) and cost US$1.5 million each, net to 88E-LEI.

Bighorn secured a US$5 million line of credit facility in Q3 2023 to assist in cash flow management associated with the development opportunities. The facility is supported by a local Texas Bank, with interest at Prime and contains no cash lock up, with security over the Longhorn assets. Hedging is required at 50% of production required to secure the drawdown required.

Longhorn assets in November produced 370 BOE per day gross (61% oil) and upon successful completion of the 2024 work program and budget which includes 5 recompletions and contingent 2 new wells planned on the 2023 acquired acreage, 88 Energy anticipates Longhorn total gross production to reach approximately 600 - 675 BOE per day (7 5 % oil) by year end 2024.

Acquisition details

On 14 December 2023, the Company, via its 75% ownership interest in the Joint Venture subsidiary Bighorn Energy, LLC ( Bighorn ), acquired an interest in the new leases and wells ( Bighorn Phase 3 ) from Endeavor Energy Resources, L.P., for consideration of US$0.35 million gross to be paid in cash by Bighorn. Bighorn will acquire interests in Bighorn Phase 3 of between 51% - 100% working interest of the leases and wells .

Project Longhorn: Conventional onshore oil & gas production

Project Longhorn assets are in the attractive Texas Permian Basin and following the acquisition, cover approximately 2,625 net acres (of which 1,262 acres relates to the newly acquired leases). The combined portfolio of assets consists of 18 leases (5 newly acquired) with 49 producing wells (9 within newly acquired leases) and associated infrastructure. Lonestar I, LLC will continue to have a working interest in the assets, and through an affiliate will continue as Operator for the existing and new leases and wells, with the remaining working interests retained by existing non-operated partners.

New acreage production

The existing production wells in the newly acquired acreage have been in operation for several years. Production from the newly acquired leases in CY2022 totalled approximately 6,200 BOE gross, which had an estimated attributable net profit before tax for the project of $0.2 million (unaudited). Current average production is approximately 26 BOE per day gross (88 Energy's net WI: 17 BOE per day), of which approximately 75% is oil.

Gross (100%) and Net Entitlement Reserves to 88 Energy (64.4% net working or net revenue interest 45%) have been independently assessed by PJG Petroleum Engineers LLC as of 30 September 2023 as follows:

Table 1: Project Longhorn - Bighorn Phase 3 - Reserves (MMBOE)


GROSS RESERVES NET 88 ENERGY REVENUE ENTITLEMENT
1P 2P 3P 1P 2P 3P
====== ====== ====== ============ ============ ===========
1.00 1.20 1.49 0.57 0.68 0.84
------ ------ ------ ------------ ------------ -----------


Further ASX Listing Rule 5.31 Information (Notes to Reserves) related to these Reserves is provided in Appendix 1.

Reserves Cautionary Statement

Oil and gas reserves and resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates that were valid when originally calculated may alter significantly when new information or techniques become available. Additionally, by their very nature, reserve and resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional drilling and analysis, the estimates are likely to change. This may result in alterations to development and production plans which may, in turn, adversely impact the Company's operations. Reserves estimates and estimates of future net revenues are, by nature, forward looking statements and subject to the same risks as other forward-looking statements.

This announcement has been authorised by the Board.

Media and Investor Relations:


88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com

Fivemark Partners, Investor
and Media Relations
Michael Vaughan Tel: +61 422 602 720

EurozHartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829

Cavendish Capital Markets Limited Tel: +44 (0)20 7397 8900
Derrick Lee Tel: +44 (0)131 220 6939
Pearl Kellie Tel: +44 (0)131 220 9775


Glossary
Bbl = barrels Mbo/Mbbl = thousand barrels of
Bcf = billion cubic feet oil
Bcfg = billion cubic feet of MMbo/MMbbl = million barrels
gas of oil
Boe = barrels of oil equivalent Mboe = thousand barrels of oil
Bopd = barrels of oil per day equivalent
Btu = British Thermal Units MMboe = million barrels of oil
mcfg = thousand cubic of gas equivalent
mmcfg = million cubic feet of Mcf = thousand cubic feet
gas MMcf = million cubic feet
mcfgpd = thousand cubic feet mmbtu = million British Thermal
of gas per day Units
mmcf = million cubic feet psi = pounds per square inch
UoM = unit of measure
IP30 = Average production rate
over the first 30 days of production


Appendix 1 - ASX Listing Rule 5.31 Information (Notes to Reserves)

Reserve Evaluation; Project Longhorn -Bighorn Phase 3 Leases

Highlights:

-- PJG Petroleum Engineers LLC (PJG) has prepared the reserve estimates and a forecast of prices and costs evaluation of the oil and gas properties of Project Longhorn - Bighorn Phase 3 leases (New Leases). The effective date of the reserve estimates and cash flow forecasts presented in this release is 30 September 2023.

-- The PJG reserve evaluation has been prepared for 88 Energy in accordance with reserves definitions, standards and procedures contained in the Society of Petroleum Engineers' Petroleum Resources Management System (SPE-PRMS) and reported in the most specific resource class in which the prospective resource can be classified under 2018 SPE-PRMS. The reserves presented in the PJG report are based on forecast prices and costs. Economic Limit Tests (ELTs) used to estimate Reserves shown above were carried out assuming a constant WTI crude oil price of US$75/bbl and a constant US$3.50/mmbtu for the NYMEX gas price. All oil prices used in the evaluation have been adjusted from the reference price for quality and transportation, which is -$0.71/bbl based on historical averages. Gas prices account for NGL's in the gas and have been adjusted for heating value by a factor of 1.30 mbtu/cf based on historical averages. As a result, the net oil and gas prices used in this report are US$74.29/bbl and US$3.13/mcf respectively.

-- The Proved reserves (1P) net of royalties is 0.42 million bbl of oil and 0.76 bcf of gas, or 0.57 million BOE, net to 88 Energy.

-- The Proved plus Probable reserves (2P) net of royalties are 0.50 million bbl of oil and 0.90 bcf of gas, or 0.68 million BOE, net to 88 Energy.

-- The Proved plus Probable plus Possible reserves (3P) net of royalties are 0.61 million bbl of oil and 1.12 bcf of gas, or 0.84 million BOE.

Background

88 Energy, via its wholly owned subsidiary, Longhorn Energy Investments LLC, has a 75% ownership interest in Bighorn energy, LLC (Bighorn) and Lonestar I, LLC has a 25% ownership interest in Bighorn, acquired the new leases from Endeavor Energy Resources, L.P. on 14 December 2023. The leases comprise approximately 1,683 Bighorn net acres across 5 leases with 9 producing wells and associated infrastructure.

Table 2: Developed Reserves of Acquisition


RESERVES GROSS NET ENTITLEMENT
----------------------
UoM 1P 2P 3P 1P 2P 3P
========================= ====== ====== ====== ====== ====== =====
OIL MMBO 0.02 0.03 0.04 0.01 0.01 0.01
================ ======== ====== ====== ====== ====== ====== =====
GAS BCF 0.02 0.03 0.05 0.01 0.01 0.02
================ ======== ====== ====== ====== ====== ====== =====
TOTAL reserves MMBOE 0.03 0.04 0.05 0.01 0.01 0.02
---------------- -------- ------ ------ ------ ------ ------ -----


Table 3: Undeveloped Reserves of Acquisition


RESERVES GROSS NET ENTITLEMENT
----------------------
UoM 1P 2P 3P 1P 2P 3P
OIL MMBO 0.71 0.85 1.05 0.41 0.49 0.60
GAS BCF 1.30 1.56 1.93 0.75 0.89 1.10
TOTAL reserves MMBOE 0.97 1.16 1.44 0.56 0.67 0.82
---------------- -------- ------ ------ ------ ------ ------ -----


Table 4: Total Reserves of Acquisition


RESERVES GROSS NET ENTITLEMENT
----------------------
UoM 1P 2P 3P 1P 2P 3P
========================= ====== ====== ====== ====== ====== =====
OIL MMBO 0.74 0.88 1.10 0.42 0.50 0.61
================ ======== ====== ====== ====== ====== ====== =====
GAS BCF 1.32 1.59 1.98 0.76 0.90 1.12
================ ======== ====== ====== ====== ====== ====== =====
TOTAL reserves MMBOE 1.00 1.20 1.49 0.57 0.68 0.84
---------------- -------- ------ ------ ------ ------ ------ -----


The subsequent sections detail the field and reserves/ resources information for compliance with ASX listing rules pertaining to the first announcement of material oil and gas projects.

Assumptions and Notes

a) The reserves information in this document is effective as of 30 September 2023 (Listing Rule (LR) 5.25.1).

b) The reserves information in this document has been estimated and is classified in accordance with SPE -- PRMS (Society of Petroleum Engineers -- Petroleum Resources Management System) (LR 5.25.2).

c) The reserves information in this document is reported according to the Company's economic interest in each of the reserves net of royalties (LR 5.25.5).

d) The reserves information in this document has been estimated and prepared using the deterministic method (LR 5.25.6).

e) The reserves information in this document has been estimated using a 5:1 BOE conversion ratio for gas to oil; 5:1 conversion ratio is based on an energy equivalency conversion method and does not represent value equivalency (LR 5.25.7).

f) The reserves information in this document has been estimated on the basis that products are sold on the spot market with delivery at the sales point on the production facilities (LR 5.26.5).

g) The method of aggregation used in calculating estimated reserves was the arithmetic summation by category of reserves. As a result of the arithmetic aggregation of the field totals, the aggregate 1P may be a conservative estimate and the aggregate 3P may be an optimistic estimate due to the portfolio effects of arithmetic summation (LR 5.26.7 & 5.26.8)

h) Project Longhorn - Bighorn Phase 3 reserves are located in the Permian Basin, Texas, USA.

ASX LR 5.31 Reserves - Project Longhorn - Bighorn Phase 3 Leases


Project Longhorn - Bighorn Phase 3 Leases
LR 5.31.1 - Material Oil and gas prices - Oil prices used in
economic assumptions this report were kept constant at US$75/bbl
used to calculate the to end of field life for WTI crude oil.
estimates of petroleum This was then adjusted to account for
reserves transportation
and quality differences based on historical
actual prices achieved, which averaged
a $0.71/bbl deduction.
Natural gas prices used in this report
were kept constant at US$3.50/mmbtu for
the NYMEX benchmark to the end of field
life. Gas prices account for NGL's in the
gas and have been adjusted for heating
value by a factor of 1.30 mbtu/cf based
on historical averages. Consequently, the
net gas price used in this report is US$3.13/mcf.

Capex - gross capital costs were estimated
by the Operator covering drilling and completion,
recompletion and abandonment costs considered
necessary to recover the reserves. Capital
costs were considered reasonable by PJG,

which cost between US$0.8 million and US$2.0
million depending on the type of activity
performed.
Opex - gross operating costs were based
on historical lease operating statements.
These forecasts were reasonable by PJG.
Discount rate - pre-tax discount rate
of 10%
---------------------------------------------------
LR 5.31.2 Operator Longhorn Energy Investments LLC, a wholly
or non-operator interests owned subsidiary of 88 Energy Limited,
is a non-operator of Project Longhorn and
has an average 64.4% working interest across
the newly acquired leases, based on area.
Table 5 shows lease working interests for
the new acreage - Bighorn Phase 3 leases.
---------------------------------------------------
LR 5.31.3 Permits or The reported reserves relate to the acquisition
Licenses of 5 leases located in the Permian Basin,
Texas, USA. All leases are Held by Production,
have no expiry date and no drilling obligations.
----------------------------------------------------------------- ---------------------------------------------------
LR 5.31.4 Description
of:
Economic Limit Tests were performed and
* Basis for confirming commercial producibility and project NPVs calculated to satisfy the
booking reserves. commerciality requirements of the PRMS.
PJG carried out these analyses for all
wells - current and proposed, based on
pricing noted above under LR 5.31.1, Operator
provided third party gas plant and oil
purchaser statements, Operator provided
current royalty rates and all applicable
State of Texas oil and gas taxation roles
applicable to the specific areas of operations.
Future capital requirements and actual
historical operating costs were obtained
from the Operator's projections and were
accepted as reasonable.
The commercial producibility of undeveloped
reserves is based on stabilised production
rates from existing wells and production
analogues from the same formations.
PJG has relied on Decline Curve Analysis
* Analytical procedures used to estimate the petroleum techniques for this evaluation. Production
reserves decline analysis was performed using all
available production/well test data to
estimate a range (Low, Best and High Cases)
of production forecasts, which were used
as the basis for estimating reserves. An
uncertainty range in both the decline rate
and the exponent factor of the hyperbolic
decline fit was applied to forecast different
decline trends attributable to uncertainty
in reservoir performance, and to estimate
the oil production volumes for the 1P,
2P and 3P reserves categories. These reserves
were sense checked against volumetric reserve
calculations based on log derived parameters.
Production records were obtained from
the Texas Railroad Commission (TRRC) on
a lease basis, or when applicable, by combining
Operator identified API Number well data
historical records, to serve as the basis
of the production volumes in our decline
curve analysis. This data matched Operator
provided data.
All current and proposed wells will utilize
* Proposed extraction method and any specialised sucker rod pumping systems to artificially
processing required following extraction required lift the oil to surface. The reservoirs
are largely depletion / solution gas drive
with some reservoirs having water aquifer
support.
---------------------------------------------------
LR 5.31.5 - Estimated See Tables 2-4 inclusive at the start of
quantities to be recovered Appendix 1.
---------------------------------------------------
LR 5.31.6 - Undeveloped All undeveloped reserves are all located
petroleum reserves; within 1320 ft (40 acres spacing) of existing
a brief statement regarding:- production; hence development of these
* Status of the project reserves simply requires a completed well
and tie back to existing production. Two
new wells are budgeted to be drilled and
* When development is anticipated completed in 2024. The eight remaining
development activities are planned for
the 2024-2026 period. All existing marketing
* Marketing arrangements arrangements, transportation infrastructure
and approvals are planned and budgeted
to be utilized.
* Access to transportation infrastructure


* Environmental approvals required
---------------------------------------------------
LR 5.31.7 - Unconventional Not applicable.
petroleum resources
---------------------------------------------------
LR 5.32 - Project estimates Not applicable; this report constitutes

that have materially first time reporting for Project Longhorn
changed from when the - Bighorn Phase 3 leases.
estimates were previously
reported
---------------------------------------------------


Definitions

-- Reserves are those quantities of petroleum that are anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria, based on the development project(s) applied: discovered, recoverable, commercial and remaining (as of the evaluation date).

-- 1P is defined as Proven reserves. 2P is defined as Proven plus Probable reserves. 3P is defined as Proven plus Probable plus Possible reserves.

-- 1P or Proven Reserves are those quantities of petroleum that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable from a given date forward from known reservoirs and under defined economic conditions, operating methods, and government regulations. This is typically considered to have more than a 90% likelihood of occurring.

-- Probable Reserves are those additional reserves that analysis of geoscience and engineering data indicates are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. This is typically considered to have approximately a 50% likelihood of occurring.

-- Possible Reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. This is typically considered to have approximately a 10% likelihood of occurring.

-- Developed reserves are expected to be recoverable from existing wells and facilities. Undeveloped reserves will be recovered through future investments (e.g. through installation of compression, new wells into different but known reservoirs, or infill wells that will increase recovery). Total reserves are the sum of developed and undeveloped reserves at a given level of certainty.

-- Contingent Resources (2C) are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies.

-- Prospective Resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.

Qualified petroleum reserves and resources evaluator statement

The petroleum reserves and resources information in this announcement are based on, and fairly represents, information and supporting documentation prepared by Paul J Griffith. Mr. Griffith has over 35 years of experience in senior technical positions in reservoir, production, and field engineering. He is a registered Professional Engineer in the State of Texas (Credential ID 68149), United States of America, his Firm PJG Petroleum Engineers, LLC is registered to provide Petroleum Engineering services by the State of Texas Board of Professional Engineers under Firm #F-23307. Mr Griffith is a Lifetime Member of the Society of Petroleum Engineers. Mr Griffith is not an employee of 88 Energy or any of its subsidiaries and has consented in writing to the inclusion of the petroleum reserves and resources information in this announcement in the form and context in which it appears.

Table 5: Working Interest


Lease Bighorn Energy 88 Energy LEASE 88 Energy Revenue
WI WI NRI Interest
-------------- --------- -----
L2-1 100% 75% 85% 64%
=============== ============== ========= ===== =================
L2-2 71% 53% 49% 26%
=============== ============== ========= ===== =================
L2-3 98% 73% 73% 54%
=============== ============== ========= ===== =================
L2-4 * 75% 56% 59% 33%
=============== ============== ========= ===== =================
L2-5 51% 38% 85% 32%
=============== ============== ========= ===== =================
Area Weighted
Average 86% 64% 70% 45%
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* Working interest in well.

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December 15, 2023 02:00 ET (07:00 GMT)
1 Year 88 Energy Chart
1 Year 88 Energy Chart

1 Month 88 Energy Chart
1 Month 88 Energy Chart
Posted at 15/12/2023 08:00 by purple11
88 Energy Limited Acquisition of Texas Oil & Gas Production Assets (8904W)
15/12/2023 7:00am
UK Regulatory (RNS & others)

88 Energy (LSE:88E)
Intraday Stock Chart


Friday 15 December 2023
Click Here for more 88 Energy Charts.

TIDM88E

RNS Number : 8904W

88 Energy Limited

15 December 2023

This announcement contains inside information

15 December 2023

88 Energy Limited

Acquisition of Additional Texas Oil and Gas Production Assets

Highlights

-- Expanded footprint in Texas Permian Basin with acquisition of further non-operated working interest in leases and wells with conventional onshore production and development opportunities.

-- 64.4% net working interest (WI) acquired by 88 Energy in 1,262 net acres, located 1/2 mile south and 1/4 mile north of existing Project Longhorn assets (Longhorn) connecting the acreage position.

-- Joint Venture partner and Operator, Lonestar I, LLC (Operator or Lonestar), also acquired a 21.5% WI in the new assets with remaining WI retained by existing non-operated partners.

-- Purchase price of US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC (Bighorn) which comprises of Longhorn Energy Investments LLC (LEI) a 100% wholly owned subsidiary of 88 Energy (75% ownership) and Lonestar (25% ownership).

-- Attractive low-cost entry of US$0.33 per BOE based on the independently certified net 2P reserves position of 0.68 MMBOE(1,2) .

-- Nine (9) low-producing existing wells (26 BOE/day gross) and 10 development opportunities with potential identified in multiple zones and classified as Gross Undeveloped 2P Reserves (1.2 MMBOE(1,2) ), along with Contingent and Prospective Resources which are yet to be quantified.

-- Coupled with the additional acreage announced in July 2023, Bighorn has reviewed its development opportunities and will now target lower-cost workovers ahead of new drills. Bighorn has approved 5 workovers to be completed in 1H 2024 and upon successful execution are expected to increase production to 180 - 220 BOE gross per day (75% oil).

-- Once the workovers are completed, Bighorn will consider for approval the 2 new production wells, as previously announced, in 2H 2024, which are expected to increase production by an additional 160-200 BOE gross per day (75% oil).

-- Upon successful completion of the workovers and new wells across its acreage, together with the existing producing wells, 88 Energy expects Longhorn total gross production to reach approximately 600 - 675 BOE per day (75% oil) by year end 2024.

-- The new acreage contains 2 injection wells that will be assessed for restoration so that Bighorn has optionality for water disposal, particularly as production increases when new wells come online.

-- Bighorn recently secured a US$5 million line of credit facility to assist in cash flow management associated with the development opportunities.

(1) Refer to page 3 for initial reserves estimates and assumptions.

(2) Net Revenue Entitlement to 88 Energy.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or the Company ) is pleased to announce the execution of binding agreements for the acquisition of a new non-operated working interest ( WI ) (64% net to 88 Energy) in leases and wells with conventional onshore production and development assets within the Permian Basin of Texas, U.S.

The new oil and gas production and development assets (Bighorn Phase 3) will form an extended footprint with the initial assets acquired in February 2022 (Bighorn Phase 1) coupled with the new assets acquired in July 2023 (Bighorn Phase 2), all together known as Project Longhorn ( Longhorn ) as shown in figure 1 below. The new acreage is located approximately 1/2 mile south of Bighorn Phase 1 and 1/2 mile north of Bighorn Phase 2. The newly acquired acreage is estimated to contain independently certified net 2P reserves of 0.68 MMBOE (1,2) .

Figure 1: Project Longhorn acreage

Importantly and alike to the July 2023 acquisition, all proposed well locations have been classified as low-risk, accessing net Proven reserves totalling 0.56 MMBOE (1,2-) , given the production histories from existing wells on the newly acquired leases as well as adjacent leases. The development opportunities should intersect multiple potentially oil-bearing intervals which have been successfully developed in the vicinity of Longhorn and the upside has been identified and classified as Contingent or Prospective Resource and will be quantified.

Purchase price of US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC ( Bighorn ) which comprises of Longhorn Energy Investments LLC ( 88E-LEI ) a 100% wholly owned subsidiary of 88 Energy (with a 75% ownership interest) and Lonestar I, LLC ( Operator or Lonestar ) holding a 25% ownership interest.

The acquisition provides 88 Energy with additional flexibility over development capital opportunities including 4 lower-cost workovers (Bighorn CAPEX of US$800-950k/each) along with 6 new drill targets to accompany at least 14 new drill targets on existing acreage.

Bighorn has agreed a forward capital development program as part of its 2024 WP&B which includes 5 workovers in 1H 2024 and contingent on successful workovers, 2 new drills in 2H 2024. The 2 new wells (on leases which Longhorn has a 75% WI), are each anticipated to deliver IP30 of approximately 80-100 BOE per day gross (75% oil) and cost US$1.5 million each, net to 88E-LEI.

Bighorn secured a US$5 million line of credit facility in Q3 2023 to assist in cash flow management associated with the development opportunities. The facility is supported by a local Texas Bank, with interest at Prime and contains no cash lock up, with security over the Longhorn assets. Hedging is required at 50% of production required to secure the drawdown required.

Longhorn assets in November produced 370 BOE per day gross (61% oil) and upon successful completion of the 2024 work program and budget which includes 5 recompletions and contingent 2 new wells planned on the 2023 acquired acreage, 88 Energy anticipates Longhorn total gross production to reach approximately 600 - 675 BOE per day (7 5 % oil) by year end 2024.

Acquisition details

On 14 December 2023, the Company, via its 75% ownership interest in the Joint Venture subsidiary Bighorn Energy, LLC ( Bighorn ), acquired an interest in the new leases and wells ( Bighorn Phase 3 ) from Endeavor Energy Resources, L.P., for consideration of US$0.35 million gross to be paid in cash by Bighorn. Bighorn will acquire interests in Bighorn Phase 3 of between 51% - 100% working interest of the leases and wells .

Project Longhorn: Conventional onshore oil & gas production

Project Longhorn assets are in the attractive Texas Permian Basin and following the acquisition, cover approximately 2,625 net acres (of which 1,262 acres relates to the newly acquired leases). The combined portfolio of assets consists of 18 leases (5 newly acquired) with 49 producing wells (9 within newly acquired leases) and associated infrastructure. Lonestar I, LLC will continue to have a working interest in the assets, and through an affiliate will continue as Operator for the existing and new leases and wells, with the remaining working interests retained by existing non-operated partners.

New acreage production

The existing production wells in the newly acquired acreage have been in operation for several years. Production from the newly acquired leases in CY2022 totalled approximately 6,200 BOE gross, which had an estimated attributable net profit before tax for the project of $0.2 million (unaudited). Current average production is approximately 26 BOE per day gross (88 Energy's net WI: 17 BOE per day), of which approximately 75% is oil.

Gross (100%) and Net Entitlement Reserves to 88 Energy (64.4% net working or net revenue interest 45%) have been independently assessed by PJG Petroleum Engineers LLC as of 30 September 2023 as follows:

Table 1: Project Longhorn - Bighorn Phase 3 - Reserves (MMBOE)


GROSS RESERVES NET 88 ENERGY REVENUE ENTITLEMENT
1P 2P 3P 1P 2P 3P
====== ====== ====== ============ ============ ===========
1.00 1.20 1.49 0.57 0.68 0.84
------ ------ ------ ------------ ------------ -----------


Further ASX Listing Rule 5.31 Information (Notes to Reserves) related to these Reserves is provided in Appendix 1.

Reserves Cautionary Statement

Oil and gas reserves and resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates that were valid when originally calculated may alter significantly when new information or techniques become available. Additionally, by their very nature, reserve and resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional drilling and analysis, the estimates are likely to change. This may result in alterations to development and production plans which may, in turn, adversely impact the Company's operations. Reserves estimates and estimates of future net revenues are, by nature, forward looking statements and subject to the same risks as other forward-looking statements.

This announcement has been authorised by the Board.
Posted at 05/2/2023 13:06 by pro_s2009
Comment from OilManJim on 88E and PANR



...................

Catching up on recent news, 88 Energy (88E) announced its placing. Up to £8.1 million at a price per share of 0.55p to fund the drilling of Hickory-1 in early March. The well is said to have been significantly de-risked by recent Pantheon Resources (PANR) drilling and flow tests, interpretation of the Icewine-1 well logs and modern Franklin Bluffs 3D seismic data and associated AVO analysis.

PANR also issued news, aiming to make a case that its operations potentially are commercial. It is critical now for the company to get its share price up, otherwise it faces having to repay convertible bond holders in cash (which it does not have), or accepting an effective death spiral in its share price, the strength of which will also determine whether or not it will be able to raise further meaningful finance.

88E has been covered three times in the Private Blog as a company of interest: first, at around the 0.7p placing level to finance the Charlie-1 well (the share price subsequently reached a high of 1.48p prior to the spud); second, at around the 0.33p placing level to finance the Merlin-1 well (the share price subsequently reached a high of 4.7p prior to the well result); third, at around the 1.49p placing level to finance the Merlin-2 well (the share price subsequently reached a high of 2.817p prior to the spud).

I have no great faith in the actual viability of any of 88E’s projects; it’s just one that’s invariably been good for a pre-spud share price run. This time, though, it’s left little time between funding and spudding............
Posted at 16/7/2022 08:36 by saint in exile
If 88e runs true to form any positive drilling results from Panr will ironically do more for the 88e share price than Panrs...short term at least
Posted at 01/3/2022 20:35 by pro_s2009
So currently 88E share price is 2.5p in Australia and 2.6p in USA.
88 Energy share price data is direct from the London Stock Exchange

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