Analysts Report - DJ Carmichael

Hi Ya'll

See below FYI.

http://us10.campaign-archive1.com/?u=c00a28333b2ad686999d57de4&id=7b6c053234

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0	Column 1 0 Column 1 0 Oil & Gas Research - 88 Energy Ltd (88E) - Initiation Report

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Column 1 0 88E is an Oil and Gas explorer listed on the ASX with a dominant land holding in Alaska and a comprehensive exploration and appraisal program.Summary Key PointsFavourable landholding and geology: 88E has a 77.5% working interest in over 271,119 (an additional 220,000 net acres subject to award and exercise of option) gross acres on the Alaskan Central North Slope. The United States Geological Survey has stated that the North Slope is one of the last remaining material oil shale plays in the United States.88E’s partner has an impressive track record in de-risking Shale Plays: 88E is partnered with US based Burgundy Xploration which is led by Paul Basinski. Paul was a key player in the discovery of the prolific Eagle Ford shale play in Texas.88E has had encouraging results in the de-risking of Project Icewine: Project Icewine is located ~35 miles South of Prudhoe Bay within proximity of some very large conventional oil discoveries. Results from the first well have been encouraging with the confirmation of number of the key technical characteristics of a successful unconventional oil shale play. The focus of 88E’s unconventional exploration program is the HRZ interval which is part of the Brookian unit.88E’s planned drilling program is underway: ICEWINE#2 is a vertical well that is planned to spud in Q2 of 2017. Post drilling this well will be hydraulically stimulated and flow tested.88E landholding also shows encouraging conventional prospectivity: 88E believe that its ground has the potential to host conventional accumulations of oil. A recently completed seismic survey has identified several promising leads that 88E are working to mature into drill targets.88E’s work program is fully funded: 88E recently completed a capital raising where it raised $17 in an oversubscribed placement. This brings its cash balance to $43m which makes it well capitalised to successfully execute its forward plan.88E is situated in an area with favourable infrastructure: The Icewine project sites astride the Dalton Highway and the Trans Alaskan Pipeline System (TAPS).Catalysts The drilling and the successful Hydraulic Fracturing of ICEWINE#2. Flow back testing from ICEWINE#2. Further positive geological data from ICEWINE#2 to supplement the dataset from ICEWINE#1. Identification of conventional drill targets from the recently completed seismic survey. Farm-in from large oil and gas player. RecommendationWe value 88E at a $0.085 share and initiate with a Speculative Buy Recommendation.We have used the current AUDUSD exchange rate of AUD$0.77.

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