Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
18 July 2018quarterly activities report● Neutral
June quarter report confirms Icewine#2 was suspended on 30 June after 24.8% fluid recovery and gas averaging 26mcf/d. It also notes the Yukon Gold and Western Margin lease awards, the Western Blocks term sheet, and the farm-out under way. Mostly repeats earlier announcements.
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.
Create a free account to see this worked out for your own holding.
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.
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.
30 Apr 2018quarterly activities report● Neutral
March quarter report restates the completed Icewine 3D and Yukon Gold 3D surveys, the Icewine#2 flow test due April/May, and the loan refinancing to December 2022. Option conversions brought in A$8.7m; exploration spending was A$7.2m.
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 2018quarterly activities report▲ Good
December quarter report: Icewine#2 flow testing with artificial lift is scheduled for April/May 2018 (Q2). Conventional leads now total 1.89bn barrels gross (1.045bn net), and a 3D seismic contract is awarded, with acquisition starting early February 2018. Net acreage is 286,589.
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.
