Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
8 Oct 2018capital raising announcement● Neutral
Standard letter to eligible shareholders explaining the rights issue options: take up all, part, or nothing (and be diluted). Repeats the A$0.018 price and timetable; adds only that total shares after the offer would be about 6,367m.
8 Oct 2018capital raising announcement● Neutral
Letter telling shareholders with addresses outside Australia, New Zealand and the UK that they cannot take part in the rights issue and will not receive the offer document. Administrative.
5 Oct 2018capital raising announcement● Neutral
Required legal notice for the rights issue, restating the A$14.33m raise at A$0.018 and a maximum of 795,884,235 new shares. Notes shareholders who do not take part will be diluted and the company may place any shortfall with institutions. Administrative; nothing new.
5 Oct 2018capital raising announcement● Neutral
The formal offer document for the rights issue: up to 795,884,235 shares at A$0.018 (1p), one for every seven held. It is a reduced-disclosure document and the offer is not underwritten. Repeats the terms announced on 3 October; no new figures.
What it means for a shareholder
796m new shares at A$0.018 to raise about A$14.3m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (55,556 at the issue price), your slice goes from 0.000873% to 0.000776% of the company. To keep it you'd need 6,944 more shares - about A$125 at the issue price.
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5 Oct 2018admin correction● Neutral
Corrects the rights issue timetable: shares trade ex-entitlement on ASX from 9 October 2018, not 10 October. Other dates are unchanged, including the 26 October closing date.
3 Oct 2018capital raising announcement● NeutralMajor
88E announced a 1-for-7 non-renounceable rights issue at A$0.018 per share to raise up to about A$14.33m, not underwritten. Funds are for Winx-1 testing and possible cost overruns, lease rentals and working capital. Winx-1 spud is set for February 2019; directors intend to take up their entitlements.
28 Sept 2018asset acquisition disposition▲ GoodMajor
88E added 45,239 net acres, taking its position to 371,478 net acres: an ASRC lease over 28,453 acres (100% net) and a 69.1% interest in 24,269 acres from Great Bear. Cost was US$206,388 net to 88E. Some ASRC acreage is covered by prospects in the farm-out package.
11 Sept 2018investor presentation● Neutral
September 2018 'Diversified Explorer' presentation updating the portfolio, with Nordic Rig #3 on the cover. The text seen is only disclaimer; no new figures are visible.
5 Sept 2018half year report● Neutral
Half-year report to 30 June 2018 restates the period: Icewine#2 suspended after 24.8% of frac fluid recovered, A$17m placement, A$8.7m from option conversions, and the US$16.5m loan refinanced to Dec 2022. Financial statements were not visible in the text provided.
29 Aug 2018contract award● Neutral
Otto Energy's announcement of the same Winx rig contract with Nordic-Calista (Rig 3), drilling early 2019. It repeats 88E's release and adds nothing new for 88E.
29 Aug 2018contract award▲ GoodMajor
88E signed a rig contract with Nordic-Calista (Rig 3) to drill Winx-1 on the Western Blocks in 1Q2019. The prospect is 400MMbbl gross mean unrisked (144MMbbl net to 88E), 25-30% chance of success. Moves the Western Blocks well from plan towards execution.
29 Aug 2018contract award● Neutral
Red Emperor's announcement that operator 88E signed a rig contract with Nordic-Calista for the Western Blocks 'Winx' prospect, with drilling on schedule for 1Q2019. Duplicates 88E's own release; no new terms for 88E.
3 Aug 2018investor presentation● Neutral
August 2018 Project Icewine portfolio presentation covering the conventional upgrade and the Icewine#2 update. The text is mostly disclaimer; it repeats known facts and shows no new figures.
30 July 2018farm in farm out completion● Neutral
Red Emperor's own announcement of the Western Blocks definitive agreements, giving it 31.5% (28% after back-in). Confirms the US$500k payments split and the 31 Dec 2018 permit deadline for the second payment. Mostly repeats 88E's announcement; also says Red Emperor will resume ASX trading.
30 July 2018farm in farm out completion● Neutral
Otto Energy's own announcement of the same Western Blocks definitive agreements, giving Otto 22.5% (20% after back-in). Terms match 88E's: 400MMbbl gross prospect, well by 30 May 2019. Adds nothing new for 88E shareholders.
30 July 2018farm in farm out completion▲ GoodMajor
Definitive agreements for the Western Blocks were signed with Great Bear, Otto and Red Emperor. 88E holds 36% (32% after Great Bear's back-in) and has paid its share of the US$3.0m bond; a well is due by 30 May 2019. Also: Icewine farm-out dataroom opened, and a US$5.66m credit certificate was issued.
2 July 2018drilling result▼ BadMajor
The joint venture suspended Icewine#2 without reaching a representative flow rate, ending the vertical test that began in 2017. It now sees horizontal appraisal wells as the next step and has begun an HRZ farm-out; Dave Wall called the result disappointing.
27 June 2018drilling progress report▼ Bad
Icewine#2 flowback fell to about 30 barrels of water a day despite reduced nitrogen. Total fluid returned is 24.4% versus the 30% target, and salinity shows no reservoir contact. The company is re-assessing its plan to reach 30%, a setback for the HRZ test.
25 June 2018farm in farm out agreement▲ GoodMajor
88E, with Otto Energy and Red Emperor, signed a binding term sheet to acquire most of Great Bear's interest in four Western Blocks leases next to the 2017 Horseshoe oil discovery. 88E would hold 36%; well due by 31 May 2019. Prospect: 400MMbbl gross mean unrisked, 25-30% chance of success.
25 June 2018farm in farm out agreement● Neutral
Partner Red Emperor's own announcement of the same Western Blocks term sheet, giving it a 31.5% interest and a US$1.05m share of the US$3.0m bond. Definitive agreements are expected within 30 days. It adds nothing new for 88E.
25 June 2018farm in farm out agreement● Neutral
Revised re-release of the Western Blocks term sheet announcement; it adds that Horseshoe was drilled by Repsol and Armstrong and adds a cautionary statement. Terms are unchanged: 88E 36%, 400MMbbl gross prospect, well due by 31 May 2019.
22 June 2018drilling progress report▼ Bad
Icewine#2 flowback fell to about 50 barrels of water a day after nitrogen injection was raised, which the company attributes to a downhole choke. Fluid recovery is 24% against the 30% target; no connection to the reservoir is shown yet.
18 June 2018drilling progress report● NeutralMajor
Nitrogen lift began at Icewine#2; gas averages 571mcf/d, about 24.8% (142mcf/d) hydrocarbon. Total fluid returned is 23% of frac fluid versus the 30% target. Separately, the Yukon Gold and Western Margin leases from the Dec 2017 round were formally awarded.
13 June 2018drilling progress report● Neutral
Icewine#2 flowback began 11 June at 3,000 psi and 253 barrels of water a day, falling to 160 barrels a day by 12 June. No impediment to flow is indicated; hydrocarbon rate not yet measured. Continues the testing set out earlier.
5 June 2018drilling progress report▲ Good
Pressure data show the Icewine#2 fracture half-length is about 500 ft after winter, versus 504 ft before, so the stimulated fracture has not degraded. No remedial work is needed before flowback starts on 11 June.
29 May 2018drilling progress report▲ Good
Site works finished and downhole gauges were retrieved from Icewine#2, with the well clear of debris. Wellhead pressure of ~3,000-3,500 psi and 5,200 psi at 4,000 ft were described as positive. Flowback remains on schedule for 11 June.
21 May 2018drilling progress report● Neutral
Icewine#2 production testing is scheduled to restart 11 June 2018, using nitrogen lift to remove up to 4,000 barrels more fluid, expected to take 10-14 days. Snow clearing has begun at the site, and 3D seismic processing is on schedule.
9 May 2018capital raising announcement● Neutral
Confirms issue of 460.8m shares at A$0.037 raising A$17m, an 8.29% dilution of existing holders. No underwriting; commission was 6% plus A$75,000 management fees. This completes the 2 May placement.
What it means for a shareholder
461m new shares at A$0.037 to raise about A$17.0m. That's 8.3% dilution: every existing holder's slice gets 8.3% smaller. If you held A$1,000 of shares (27,027 at the issue price), your slice goes from 0.00053% to 0.000486% of the company. To keep it you'd need 2,443 more shares - about A$90 at the issue price.
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2 May 2018capital raising announcement● NeutralMajor
88E raised up to A$17m via an oversubscribed placement of up to 460m shares at A$0.037. Cash was US$10.5m at 31 March against a US$6.5m work programme. Funds cover 3D seismic processing, ~A$5m of lease payments and debt interest; shares on issue rise to ~5.56bn.
1 May 2018other● Neutral
Appendix 4G, the administrative checklist pointing to the corporate governance statement for the year to 31 December 2017. No new company information.
