Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
17 Jan 2022drilling progress report● Neutral
Merlin-2 Permit to Drill is in final BLM review, snow road construction and rig commissioning have started, and spud stays on track for February 2022. The company notes media reports of a letter to the BLM from environmental group Center for Biological Diversity.
6 Dec 2021drilling progress report▲ Good
Merlin-2 preparations are on track: snow road work starts before year-end, the Permit to Drill is expected around year-end, and Arctic Fox rig commissioning is set for January, with spud in February 2022. A contractor will take 407.65m shares at A$0.026 (up to US$7.5m of invoices).
30 Nov 2021investor presentation● Neutral
November Merlin-2 investor update restating known facts: 652 million barrel unrisked target, 364 million barrels risked, 56% chance of success, Q1 2022 timing. No new results.
24 Nov 2021drilling scheduled▲ Good
The Merlin-2 location is chosen from three permitted sites, east and downdip of Merlin-1, where thicker, better-quality reservoir is expected. Spud remains on track for February 2022, with a production test planned subject to wireline results and approvals.
26 Oct 2021contract award▲ GoodMajor
88E signs a rig contract with Doyon Drilling for the Arctic Fox rig to drill the Merlin-2 appraisal well, to 8,000 feet permitted depth, with spud scheduled for February 2022. The well targets 652 million barrels (unrisked, 56% chance of success).
2 Sept 2021capital raising announcement● NeutralMajor
88E raises A$23.96m through a placement of 855.9m shares at A$0.028, a 12.5% discount to the last close. Funds go to the Merlin-2 appraisal well, lease payments and working capital. Shares on issue rise to about 14.4bn; 50m broker options at A$0.05 are proposed.
What it means for a shareholder
856m new shares at A$0.028 to raise about A$24.0m. That's 5.9% dilution: every existing holder's slice gets 5.9% smaller. If you held A$1,000 of shares (35,714 at the issue price), your slice goes from 0.000264% to 0.000248% of the company. To keep it you'd need 2,257 more shares - about A$63 at the issue price.
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2 Sept 2021investor presentation● Neutral
Investor presentation dated August 2021, released with the placement. Text provided is only the disclaimer, so no new information can be drawn from it.
16 Aug 2021resource reserve update▲ GoodMajor
Merlin-1 post-well review confirms light oil (mid-30s to low-40s API) in the N20 and N18 targets, plus a new N19 sand, with 41 feet of net log pay. Peregrine prospective resource is now about 1.6bn barrels; Merlin-2 appraisal well planned Q1 2022, 56% chance of success.
11 Aug 2021half year report● Neutral
Half-year accounts to 30 June 2021 recap Merlin-1, the Umiat and Peregrine buyouts and the tax credit sale. Cash was A$14.8m with zero debt, and a final US$5.0m Merlin-1 cash call was received after period end. Mostly repeats earlier announcements.
4 Aug 2021regulatory community update▲ Good
The US land regulator (BLM) approved a 24-month extension of the Umiat Year 2 unit well commitment, moving it from 31 August 2021 to 31 August 2023. 88 Energy said Merlin-1 data point to possible bypassed pay in the Umiat footwall and potential development cost savings.
2 Aug 2021director officer appointment● NeutralMajor
Philip Byrne was appointed Non-Executive Chairman and Joanne Kendrick a Non-Executive Director, and Robert Benkovic joined as Chief Operating Officer. Chairman Michael Evans retired from the Board after more than seven years.
15 July 2021asset acquisition disposition● NeutralMajor
The Peregrine buyout from APDC completed, with 633m shares issued, 190.6m fewer than first projected. 88E now holds 100% of Peregrine, with 13.54bn shares on issue. APDC has paid its outstanding Merlin-1 cash calls.
14 July 2021drilling result▲ Good
The remaining 13 Merlin-1 core trims added 5 more hydrocarbon confirmations, so 7 of 18 trims in total so far (the quarterly report later counts 9). Second-phase analysis is due in 2-3 weeks, and a full results summary is targeted for early August.
1 July 2021debt financing▲ Good
The tax credit sale completed at US$18.7m, and US$16.1m repaid the Brevet loan in full, as announced on 21 June. 88E is now debt free, with unaudited cash of A$14.8m at 30 June 2021.
30 June 2021other● Neutral
88E adopts the World Economic Forum's 21-metric ESG reporting framework and hires Socialsuite to measure and report on it. A policy and reporting step with no operational or financial impact stated.
24 June 2021drilling result▲ Good
Lab analysis of 5 of 18 selected Merlin-1 core trims found hydrocarbons in 2, in zones the earlier fluid tool could not sample. Chemical signatures show no biodegradation. Further results from the remaining 13 trims and a second phase of analysis are due.
21 June 2021debt financing▲ GoodMajor
88E agrees to sell its Alaskan tax credits for US$18.7m cash, against US$19.1m approved, and to repay its US$16.1m Brevet loan early, with penalties waived. This clears the debt due December 2022 and leaves US$2.6m extra cash.
7 June 2021farm in farm out agreement● NeutralMajor
88E buys APDC's 50% of Peregrine, returning to 100%, for US$14m in shares plus a 1.5% royalty and reserve-linked cash payments (US$10m at 100m bbl 2P). APDC says it could not fund future seasons. This reverses the December 2020 farm-out, and 88E can farm out again.
25 May 2021drilling result● NeutralMajor
Merlin-1 fluid samples showed up to ~70% hydrocarbon, likely oil, but the readings are qualitative and may be mostly water. 88E's share of well cost is now about US$9m (versus US$4m earlier estimated). It will issue 345m shares at A$0.025 to vendors in part payment.
21 May 2021investor presentation● Neutral
AGM presentation restating known facts: Merlin-1 drilled with lab testing ongoing, Umiat acquired, and Peregrine at 50% interest. Shows cash of A$20.1m at 31 March 2021 and 12.57bn shares on issue. No new results.
4 May 2021director officer appointment● NeutralMajor
Ashley Gilbert becomes Managing Director from 10 May 2021, replacing the resigning David Wall, as previously flagged. Sarah Smith, acting Company Secretary 2014-2020, takes over as Company Secretary, and Gilbert steps down as CFO.
27 Apr 2021drilling result▲ Good
Lab testing of Merlin-1 cores, mud gas and fluids has begun, with results due in 2-10 weeks. Early mapping suggests newly found zones may be similar in size to the original targets, though this needs confirming. Pantheon's Talitha-A light oil flow next to Icewine prompts 88E to re-assess its Kuparuk acreage.
12 Apr 2021drilling result▲ Good
Sidewall cores from Merlin-1 show fluorescence and cut over several horizons, confirming the oil shows seen earlier in cuttings. Management calls the result expected. Samples have gone to a laboratory, with a results schedule to follow. No discovery has been declared.
6 Apr 2021drilling result● NeutralMajor
Merlin-1 reached 5,267 ft and logs show several possible pay zones, including a new horizon not targeted before. Equipment failure and poor hole condition prevented sampling the two best zones, so a discovery is unconfirmed. Too late in the season to flow test; the well will be plugged.
31 Mar 2021asset acquisition disposition▲ GoodMajor
The final condition for the Umiat Oil Field purchase is met: two old wells have been plugged and abandoned. Umiat holds 17,633 acres next to Peregrine, with a well commitment due 31 August 2022. Wireline logging continues at Merlin-1, with preliminary results expected over the weekend.
29 Mar 2021drilling progress report▲ Good
Merlin-1 logging while drilling shows multiple possible hydrocarbon zones, with oil shows over several intervals in the Nanushuk. The formation came in about 600 ft low to prediction and is interpreted to be about 500 ft thicker than at Willow. Wireline results are needed to confirm a discovery. Harrier-1 is now planned for 2022.
22 Mar 2021capital raising announcement▲ GoodMajor
Contractor ELKO International will subscribe for 360m shares at A$0.018, 225% above the February placement of A$0.008, with no fees, to fund the Merlin-1 cost overruns. Shares on issue rise to 12.52bn. Merlin-1 surface casing is set and drilling continues toward 6,000 ft.
What it means for a shareholder
360m new shares at A$0.018 to raise about A$6.5m. That's 5.0% dilution: every existing holder's slice gets 5.0% smaller. If you held A$1,000 of shares (55,556 at the issue price), your slice goes from 0.000808% to 0.000768% of the company. To keep it you'd need 2,911 more shares - about A$52 at the issue price.
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15 Mar 2021price query● Neutral
ASX queried the share price rise from A$0.008 to an intraday A$0.017 and heavy volume. 88E said it knew of no unannounced information, noted Merlin-1 was drilling at 1,250 ft and that Talitha-A was being tested next to Icewine.
11 Mar 2021drilling spud● NeutralMajor
Merlin-1 began drilling on 10 March 2021, targeting 645m barrels gross, with results expected within about four weeks. 88E's share of cost rose to US$4m from US$1.4m, with cash of US$13m. Harrier-1 is now unlikely this season, a slip from the late March plan.
9 Mar 2021annual report● Neutral
Annual report for 2020. The Chairman notes Rig 111 is on location for Merlin-1 and that 88E now operates projects across 444,517 net acres, including Tract 29 and Umiat. David Wall will depart after Peregrine drilling. Financial statements were not in the text provided.
