Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
7 Nov 2018resource reserve update▲ GoodMajor
First resource for the 100%-owned Yukon leases: 90 MMBO net mean prospective, mostly the Cascade prospect, with break-even said to be under US$40/bbl. Combined with Icewine (2,211) and Western Blocks (144), total net conventional potential is 2,445 MMBO. Winx-1 still due February 2019.
23 Oct 2018resource reserve update▲ GoodMajor
After 3D seismic inversion, Icewine conventional prospective resource rises to 2,896 MMBO gross mean unrisked (2,211 MMBO net to 88E), up from 1.75bn net in September. Prospective, not proven. The farm-out is still targeted before end-2018.
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.
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.
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.
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.
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.
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.
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.
29 May 2017drilling progress report▲ Good
The 4.5-inch production liner was cemented successfully over the weekend, resolving last week's failed attempt. Rig demobilisation is about to begin; main stimulation is expected in the third week of June, with flow testing still on schedule for late June.
22 May 2017drilling progress report● Neutral
Wireline logs were acquired with excellent data quality, which the company says is confirmatory to Icewine#1. The 4.5-inch production liner could not be cemented because of hole conditions and is being repaired and re-run. The company says the testing schedule is unchanged.
17 May 2017drilling result▲ GoodMajor
Icewine#2 reached total depth of 11,450 feet on 15 May, on schedule. Logging is under way; main stimulation is planned for the third week of June, followed by cleanup and a choked-back production test.
9 May 2017drilling progress report● Neutral
Intermediate hole completed at 10,715 feet on 8 May; casing being cemented before drilling the production interval to about 11,400 feet. Still on schedule, with production testing expected late June/early July.
3 May 2017drilling progress report● Neutral
Surface hole finished at 2,978 feet on 27 April, casing cemented and blow-out preventer tested. Drilling now in the intermediate section (about 3,000 to 10,710 feet), on schedule and without incident. No new result.
26 Apr 2017drilling spud▲ GoodMajor
Icewine#2 spudded at 1915 on 24 April (Alaska time) and the Arctic Fox rig is drilling the surface hole. This is the first well since Icewine#1 in 2015; production testing is still on schedule for late June/early July.
7 Apr 2017drilling progress report▲ GoodMajor
Alaska regulator issued the Icewine#2 Permit to Drill on 6 April, so all permits needed to spud are now approved. Spud is scheduled for the week beginning 24 April, with stimulation and production testing on track for June/July. Resolves the open permit thread.
