1 May 2018other● Neutral
Corporate governance statement stating the company complies with the ASX Principles (3rd edition). No separate remuneration and nomination committee is formed. Administrative disclosure with no operational or financial news.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 Apr 2018investor presentation● Neutral
April 2018 AGM investor presentation on Project Icewine. The visible text is only disclaimers and the content is truncated, so no new information can be identified.
6 Apr 2018drilling progress report▲ GoodMajor
The ~450 km2 Icewine 3D seismic survey finished 28 March on schedule and budget; early products are due June 2018, and the formal farm-out is expected to start mid-2018. A further ~96 km2 3D survey over the Yukon Gold leases was also completed 1 April, with results in Q4 2018.
5 Apr 2018joint venture update▼ Bad
Paul Basinski, founder and CEO of joint venture partner Burgundy Xploration and originator of the HRZ play, has died following complications from a heart transplant. 88E says it will continue pursuing the HRZ play. No operational change is announced.
26 Mar 2018annual report● Neutral
Annual report for the year to 31 December 2017. The chairman's letter restates the Alaska strategy, Icewine#2 and 3D seismic plans, and net acreage rising to about 301,000 acres after the December 2017 bids. Financial statements are truncated, so no new figures are visible.
26 Mar 2018debt financing▲ GoodMajor
The US$16.5m Bank of America loan was refinanced on substantively similar terms, with maturity extended from 30 June 2018 to 30 December 2022, and assigned to Brevet Capital Advisors. Repayment is still expected from ~US$21m of Alaska cash credits.
9 Mar 2018other▼ Bad
S&P Dow Jones index notice listing quarterly changes to the S&P/ASX indices. 88 Energy appears in the list of removals from the All Ordinaries effective 19 March 2018. No company-specific development.
8 Mar 2018capital raising announcement▲ GoodMajor
About 98% of the listed A$0.02 options were exercised (405m), raising A$8.1m, ahead of the 2 March expiry. The underwriter will take up the 8.7m-share shortfall. This resolves the option expiry thread and boosts cash for Icewine work.
14 Feb 2018drilling progress report▲ Good
3D seismic acquisition began 7 February 2018 over ~460 km2 of Icewine acreage, taking about 45 days. Results are due August/September 2018 to support a planned farm-out before year-end and a 2019 drilling program; permitting for two locations is largely complete.
12 Feb 2018capital raising announcement▲ GoodMajor
Hartleys and Xcel underwrite the ~340m listed 88EO options (A$0.02, expiring 2 March) up to A$6.75m, for a 4.5% fee. This guarantees funding for Icewine#2 work, new acreage and 3D seismic, following A$19.2m cash at September.
31 Jan 2018investor presentation● Neutral
February 2018 investor presentation on Icewine#2 operations. The visible text is only disclaimers and the content is truncated, so no new information can be identified.
29 Jan 2018security holder rights change● Neutral
Notice to holders of listed options (A$0.02) that they expire 2 March 2018 at 5pm AEDT unless exercised. Each option converts to one share. This is a standard expiry reminder with a sample form.
7 Dec 2017asset acquisition disposition▲ Good
88E was announced high bidder on two parcels totalling ~32,800 gross acres in the North Slope 2017W lease sale. Formal award is expected in 2018, subject to approvals. Burgundy has a right to back in to ~2,590 acres of Parcel 1.
27 Nov 2017investor presentation● Neutral
November 2017 investor presentation on Project Icewine. The visible text is only disclaimers; the content is truncated, so no new information can be identified here.
25 Oct 2017asset acquisition disposition● NeutralMajor
The JV took up 43% of the newly awarded 2016-round leases, with 88E taking a 25% interest and Burgundy the rest. Gross acreage rises to 458,097 (286,589 net to 88E). The company cites balancing acreage against its cash position and avoiding dilution.
2 Oct 2017investor presentation● Neutral
October 2017 investor presentation on Icewine#2 operations. The visible text is only disclaimers; the content is truncated, so no new information can be identified here.
21 Sept 2017well test result▼ BadMajor
Icewine#2 was shut in 18 September for winter after natural flow stopped, with ~2 mcf/d gas and 19.9% of fluid recovered. Testing resumes with artificial lift in April/May 2018, deferring the HRZ result. BoA debt is US$17.7m, with ~US$1.19m repayment imminent.
12 Sept 2017well test result● Neutral
Icewine#2 is flowing ~55 barrels a day of frac fluid with gas of 2-4 mcf a day (max 8). Cumulative fluid recovered is 19.0%. The company says this gas is not representative and more fluid must be removed; a strategy decision is due within two weeks.
4 Sept 2017well test result● Neutral
Icewine#2 flow testing restarted 31 August after the ~7-week shut-in, flowing ~70 barrels a day of frac fluid with only minor hydrocarbon signs (gas hydrates). Pressure data suggests limited reservoir connection until the last 24 hours; 17.25% of injected fluid recovered so far.
24 Aug 2017drilling progress report● Neutral
Icewine#2 flow testing restart is delayed one week to the week of 28 August, due to minor fine-tuning of the testing procedure. No new test results.
17 Aug 2017asset acquisition disposition▲ GoodMajor
Flow testing on Icewine#2 will restart the week of 21 August. The JV was awarded 109,817 gross acres on 7 July from the December 2016 bids and took up 76,996 (48,864 net); total is now 348,116 gross acres. About 256,000 acres remain subject to award.
4 Aug 2017half year report● Neutral
Half-year report to 30 June 2017 restates the period's events: A$17m placement, 1.47 billion barrel conventional prospective resource (gross, unrisked), and Icewine#2 drilled, stimulated and shut in with ~16% fluid recovered. Financial statements are truncated; no new developments seen.
18 July 2017well test result● Neutral
Icewine#2 was shut in on 10 July for six weeks; 16% of fluid had been recovered with trace hydrocarbons. The joint venture says it must analyse how the well's performance to date affects the HRZ play's probability of success, including comparing flowback against expectations. No new data.
10 July 2017well test result▼ BadMajor
After ~16% of stimulation fluid recovered (all water), Icewine#2 will be shut in for six weeks to allow pressure build-up and soaking. The company says further analysis is needed on whether the well's performance affects the probability of success for the HRZ play. Departure from earlier optimistic tone.
4 July 2017drilling progress report● Neutral
Flowback continues with ~15.3% of stimulation fluid recovered, still 100% water. A rise in salinity possibly indicates some reservoir fluid starting to return. Plan unchanged, with shut-in or artificial lift still possible. No hydrocarbon flow yet.
26 June 2017well test result● Neutral
Flowback began 19 June; ~13% of stimulation fluid recovered, all water. The upper and lower zones were found to be in communication, so the plug between them was drilled out. Only trace hydrocarbons were seen; up to 30% fluid recovery may be needed before hydrocarbons flow.
20 June 2017drilling progress report● Neutral
Both Icewine#2 stimulation stages were completed, with over 98% of the intended proppant injected into the HRZ reservoir. Flowback starts from the upper zone, then both zones are comingled. Lab analysis of samples will take four to six weeks. No flow rates yet.
19 June 2017drilling progress report▲ Good
Stage 1 (lower HRZ) stimulation was completed as planned with all proppant placed; stage 2 (upper HRZ) was expected to finish within about twelve hours. Flowback, sampling and a choke-opening test follow over coming weeks. No flow rates yet; lab analysis will take four to six weeks.
13 June 2017regulatory community update● Neutral
The Alaska regulator approved the stimulation application. Two stages (lower and upper HRZ) are planned around 17 June, with up to two weeks of flowback, then two more weeks of comingled cleanup before flow rates may be reported. The company cautions key uncertainties remain.
6 June 2017drilling progress report● Neutral
Rig demobilised and stimulation design finalised, with the application lodged with the State. Stimulation is planned around 17 June. The company says pore pressure appears higher than expected, so the planned micro stimulation (DFIT) is dropped. It lists key uncertainties still unresolved.