Agreed, consultants are a risky strategy, when the company oversight is diminished. P B is a greater loss than many realised. It is one thing to use consultants to fill a company identified gap, quite another to have them looking for the gap. How does the definition go, consultants are people that borrow your watch, then charge you for telling you the time.
The XCD target statement was a long read somewhat wasted, I thought the independent report would have some reference, to valuation of 88e assets to consider. There is plenty on valuation on XCD ground but only share price on 88e. From a XCD shareholder perspective, research on the actual value of 88e assets is fundamental, but missing. After all 88e shares are the offered currency in the deal and the report is written to protect the interest of XCD shareholders.
In particular the(bolded) copied section below irks, matured yes, wells drilled yes, but all fails so far. It is like selling a dud firecracker, having fizzed the first time, the chance of relighting and getting a good bang are diminished, not enhanced as implied.
88 Energy’s Project Icewine has been matured through acquisition of both 2D and 3D seismic surveys together with three exploration wells. Project Icewine is also in close proximity to key infrastructure including the Dalton highway and the TransAlaska pipeline, which has potential to reduce the timeline to first production and improve project economics (in the event of exploration success at Project Icewine). XCD Energy’s Project Peregrine is relatively less mature but could potentially benefit from synergies that may arise should the Combined Group have a commercial development at Project Icewine
88E Price at posting:
0.6¢ Sentiment: Sell Disclosure: Not Held
(20min delay)