Sorry Bryan. If Id stayed up to ponder and reply to some good questions that all holders should have on their minds, I would have still been up as the sun came up.
I believe they have the cash for the seismic and r not far away from a deal.
I think You are right on the acreage purchase, but hell in this low oil price environment they picked this up pretty damned cheaply.
Here's some good info from an 88e Acquisition strategy presentation.
• Further research has increased confidence to expand acreage • 98,182 acres to 272,422 acres (212,489 net) – an increase of 174,240 acres# # Subject to formal award and payment of remaining 80% bid amount (US$5.5m)
• A$20m of shareholder funds invested to date – 20% down-payment of US$740k (net) more than doubles project potential for <4% of current market capitalization
• Unique understanding of the shale oil play coupled with downturn in oil price creates opportunity in one of world’s remaining frontier regions with no effective competition
• Diversification of risk achieved through additional acreage by increasing chance of one or more play types working across larger position
• Scale now at a level that “moves the needle” for majors / National Oil Companies
• Majority of HRZ play now captured by JV -> 88E in the “box seat” in success case scenario – internal estimate of potential now exceeds 2b barrels RECOVERABLE
• Exposure to conventional plays (Brookian, Kuparuk) also more than doubled Project Icewine Acreage Acquisition Strategy
DOUBLE DOWN STRATEGY* 4 *To Double Down is to increase exposure to an outcome based on a favourable move in odds of achieving that outcome. There is no guarantee of success and risk in oil and gas exploration remains high
Capital Raising: Up to A$5m (A$3m placement + A$2m Share Purchase Plan)
• Capital raising to support acreage acquisition strategy and put 88 Energy in the “box seat” – significantly oversubscribed
• Use of proceeds include; deposit on additional acreage, potential purchase of existing 3D seismic data / seismic acquisition and for general working capital purposes
Interesting that they have pushed ahead with this expansion isn't it. Almost as if they are expecting some cash to roll in from elsewhere.
But is this the case or are they expanding too quickly.
Given Dave W's recent Moroccan jaunt, and how that panned out, I'm wondering if he'd really risk the capital input of those who took up the last 2 big placements if there wasn't some reasoning to this pace of expansion. I could be wrong here but I look to my last statement re Conoco and if they did indeed give 88E some scale parameters they need to work with.
One wonders what they would do now if than pulled out that ruler again and re-measured 88E.
Getting off track here tho re financing.
But Am I?
As I said before they are racking up some debt here as tho they are expecting some cash to roll in soon.
I cant say I have their piggy bank sussed Bryan, and I probably should. It always worries me when companies go hell for leather without giving financial statements or plans that back up their intentions.But then they may not be able to atm if the potential source of finance is confidential atm.
But I think we are committed to allow 88E vary their strategy given who they have on their board and are JV'd with. I think one must expect unusual moves from the 88E/Burgundy X crew as Basinski has an ACB strategy of problem solution, which means he puts the result(C) before the solution(B).This recent acreage acquisition is a pure example of Basinski problem resolution. Facinating to see if it pans out as Eagle Ford panned out !!!
(20min delay)