ASX Today, page-415

Redgie

The oil is there, Ice1 was a Discovery well. I disagree Q3 2017 is a "do or die" period based on what we have already been informed as below:

From announcement 10 Feb 2016:

10 February 2016
Icewine #1 Core Evaluation Update – HRZ Play Further De-risked
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to
provide the following update on the evaluation of the core over the HRZ interval from the recently
drilled Icewine#1 exploration well.
Highlights
 Matrix permeability within the cored HRZ shale exceeds expectations, several times
greater than effective cutoff in all 18 core samples measured
o 2 samples displayed permeability too high to be measured using standard
technique (indicating possible presence of “permeability super highways”)​

 Porosity confirmed at upper end of expectations as per prognosis


From Announcement 29 February:

29 February 2016
Core and Petrophysics Data Indicate World Class Resource Potential at Icewine#1
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to
provide the following update on the evaluation and integration of the core with log data
over the HRZ interval from the recently drilled Icewine#1 exploration well.
Highlights
 Integrated Core and Petrophysical Analyses Indicate Tier 1 Liquids-Rich
Hydrocarbon Concentration with World Class Resource Prize Potential -
Consistent with Pre-Drill Forecast
 Gross Pay of 196’ with Net Pay of 180.5’ – Exceptional Net to Gross Ratio of 92%
as Prognosed
 Reservoir Quality In Line With or Above Expectation:
o Outstanding Effective Porosity of 11%
 Shale Plays Typically in 4 – 7% Porosity Range
o Total Organic Carbon (TOC) Average of 3.55% in Cored HRZ Interval
o Hydrocarbon Saturation Over Entire HRZ Interval Estimated at >70%
 Rock Mechanics Further De-Risked by Additional Analysis:
o Average Clay Volume 40% - Analogous to Marcellus and Haynesville Shales
o High Percentage of Brittle, Non Swelling Clays​

 Planning for Horizontal Well, Icewine#2H Commenced


There is always risk that it wont flow at the modelled rate, but there are engineering fixes for that should it happen. There is also the risk that it flow at a higher rate higher than modelled. No doubt flow rate will impact the SP, but it certainly wont be a "do or die" moment.

IMO, we are in for a company defining 9 months ahead

Don't expect I will be losing my shirt anytime soon , in fact, might be in need of a bigger house to hang all my new shirts! Ohhh, hang on a sec, wont be needing any new shirts........ just a new pair of boardies and thongs to wear down the beach everyday in my early retirement

cheers
Chilly