88 Energy Share Discussion Threads

[viku111] 29/12/2019 22:26

If that's true... why didn't they bid better or go all out to win?

[gowski] 29/12/2019 18:46

Didn't an ex worker on the BP drill say at the recent London meet that who he currently works for was up against pmo for the farm out deal as he 'knew what he saw and what was down there'? I just love that.Dyor imo

[viku111] 29/12/2019 17:41

Another point to ask - are they waiting for any govt approvals or license or is all the approvals completed?

[pro_s2009] 29/12/2019 14:31

Watch the video in the header from 4 minutes........HRZ will be drilled and extensive testing done with this Charlie-1 well.

[pro_s2009] 29/12/2019 14:29

They are drilling the HRZ.

This well will test all 7 conventional targets (which are part of the deal with PMO) and then the will go down into the HRZ which is 100% 88E.

They will take sidewall cores and do testing in the HRZ with this well.

The HRZ is risked at 1.2p and unrisked is 12p a share to 88E.

So this is another upside.......for if the HRZ results look good, then you can start to apply a higher risked value for the HRZ, say from 1.2p to 4p.......so a big boost to the share price if the HRZ turns out good.

Ultimately in answer to your post........they are drilling into the HRZ and will test it with the Charlie-1 well.

[viku111] 29/12/2019 14:04

HRZ is not part of the deal with premium oil so they won't do any drilling on HRZ ... that is all 88e

[pro_s2009] 29/12/2019 13:56

And I would expect the share price of 88E to get to 3p pre-drill, the upside is considerable and the HRZ at the bottom could surpass all, lots going on with this drill and 3p ahead of drilling is not too much to ask.

[pro_s2009] 29/12/2019 13:55

What I am saying is expect them all to fail - so pre-drill dont assign any value to them.

Assigning any value to them now is pointless.

Its better to take the risked NAV of :

RNAV Yukon Gold = 0.8p
RNAV HRZ = 1.2p
RNAV State Credits less Debt = 0.1p
RNAV Stellar = 0.9p

Gives a pre-drill risked NAV of 3p (and ignores Indigo, Charlie and Lima) and some other license areas.

So if the share price is 3p pre-drill, then there is nothing in it for Indigo, Charlie and Lima, and if they fail, who cares.........

Really, the top 4 targets (Lima has upper and lower and is 2 targets under one name) are purely to test for oil and reservoir......they are all sub-optimal......so might as well assign zero value now pre-drill and allow them to be nice upsides if any come good.

[viku111] 29/12/2019 13:46

Don't think zero value for indigo / Charlie and Lima is correct?From what I've read, from the estimate 480m barrels, 228m barrels are predicted from these 3 you said would fail. Pls check page 2 on below pdf link. Signed as well by DW.https://wcsecure.weblink.com.au/pdf/88E/02189301.pdf

[pro_s2009] 29/12/2019 10:49

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Just click on the Entry tab.



.

[pro_s2009] 29/12/2019 05:50

The main thing here is to remember.

The first 4 targets are all likely to fail.

So assign no value for Indigo, Charlie and Lima. They have zero value and are pure upside if they work.

The value is all about the Stellar targets, numbers 5,6 and 7.

Thats when the excitement begins. Write off targets 1 to 4 now, dont assign any value or hope to them, expect them all to fail.

[pro_s2009] 29/12/2019 04:57

The BP well struck oil (251 feet of light oil in the Stellar (Torok), however towards the end of the drill they had downhole problems which means they could not perform testing.

At that time, due to low oil prices, location, completion techniques, no fracking etc... the license was subsequently left to expire.

In 2020 with fracking, horizontal completion techniques and a higher oil price, its now very viable.

[viku111] 29/12/2019 02:20

Why did BP miss this back in 91? Any idea?If 88e is getting this close to their original site.,. BP doesn't have a stake anymore?

[pro_s2009] 29/12/2019 01:45

The excellent thing here for me is that PMO were impressed and farmed in to Charlie-1. Others were also interested but PMO offered the best terms to 88E.

You will note for like BPC (I hold a small amount of BPC) - they cannot get anyone to farm in and so are struggling to do it all on their own. Whilst that makes their upside bigger on success it also means the majors see higher risk of failure.

So for majors to offer terms to 88E for Charlie-1 and then PMO to offer acceptable terms - thats more exciting for me than Director holdings.

I do believe the Torok will deliver (the lower Stellar targets) and so its going to be exciting all the way through to the final flow test of them.

Any upsides from Indigo, Charlie or Lima are just that - given zero value now but will be icing on the cake if any come in good.

[viku111] 29/12/2019 01:12

Three of them are HEAVILY Invested in this. To me that's an excellent thing.

[pro_s2009] 29/12/2019 01:11

Dont know without trudging back through all the RNS, ultimately the time to worry is when they start selling.

[viku111] 29/12/2019 01:05

How long the directors been in this? Ie DW etc..,? Seems very heavily invested

[pro_s2009] 29/12/2019 00:59

Not misleading, it merely shows the potential.

And its only using the Mean sizes.........any oil discovery could be smaller or bigger.

Thats all you can do in advance of drilling, show the potential, take the mean figures, risk them down to get a risked NAV and apply the value.

Reality is never the same, thats why hindsight is so wonderful :)

[viku111] 29/12/2019 00:57

That would be impossible then. There will be some downs along the way. Broker report can be misleading ...

[pro_s2009] 29/12/2019 00:54

Yes viku111, the 47.8p is the mean of all the projects (plus cash and tax rebate etc..), not just Charlie-1 well.

[viku111] 28/12/2019 15:50

Started looking Into this...The 47.8p is only possible if ALL projects are successful which is a high IF.3 Directors are heavily invested into this? How long have they been invested in any idea? I'm looking at the same through all past RNS's.

[pro_s2009] 28/12/2019 05:53

Below is my first run of the valuations for Charlie-1 prospects, might be errors so i will update if so.

[moneymaker2015] 28/12/2019 00:04

For anyone that missed the recent Cenkos broker note last month...

hxxps://uploadfiles.io/kc6srgsr

47.8p!!!

Nevermind a 10 bagger, that’s a 47 bagger compared to today’s sp! This is what dreams are made of!

[bigsi2] 27/12/2019 07:44

https://www.premier-oil.com/sites/default/files/presentation/191206-investor-pres-dec-2019.pdf88E Alaska page 14,15

[rodrod1] 27/12/2019 07:13

Well done Dave.....keeps the investing community focused on our potentially transformational well