STTCOMP 88E, FA Long 88 Energy Limited is an ASX and AIM listed...

STTCOMP 88E, FA Long

88 Energy Limited is an ASX and AIM listed oil exploration company that has acquired ~100,000 acres, onshore Alaska, in a world class exploration asset targeting liquids rich conventional and unconventional plays.

http://88energy.com/​

Market Cap ~ A$30 Million = 2,339,306,023 Ordinary Securities x SP A$0.013; Cash A$9,322,000; Bank Of America debt funding facility (US$50 million); 75-85% E&D cash rebates from the State of Alaska

Quarterly 29/10/2015
Icewine #1 Exploration Well Presentation 5/11/2015​

About:
“

• Focused solely on a world class oil asset on the Central North Slope of Alaska with dual conventional and unconventional liquids-rich objectives
• High working interest (78% post spud of first well) and Operatorship on very material 98,182 gross contiguous acre position onshore Alaska
• Two world class oil exploration opportunities:
  • Unconventional 492 MMBO estimated prospective resource* (gross mean unrisked at Project Icewine) To be drilled in October 2015
  • Conventional 4.0 BBO estimated remaining recoverable** on the Central North Slope Recent nearby exploration success validates world class prospectivity Multiple wells in adjacent acreage have potential to re-rate Project Icewine conventional play
• Fully funded for upcoming Icewine #1 exploration well A$10.5 million cash at bank 88E cash component of Icewine #1 well cost US$5.7m, ~US$4.8m remaining to be paid US$50 million funding facility secured with Bank of America Remainder of US$16.9m Icewine #1 well to be funded via facility
• Globally unique risk/reward with State of Alaska cash rebates on exploration (85% in CY15; 75% 1H16; 35% thereafter)
• Significant activity over the coming months will test the world class unconventional and conventional potential of Project Icewine, and provide ongoing regular newsflow for 88 Energy shareholders”

Roadshow Presentation, September 2015
​

Catalyst:

• The Spud Icewine #1 Exploration Well is currently being drilled.
• The Icewine#1 exploration well is designed to better quantify risk so that a farm-out can be achieved in 2016 => potential to unlock several hundred million to over a billion dollars in value for investors
• Highly leveraged opportunity due to low market cap (~US$20m) and bottom of cycle entry point => many multiple returns on investment possible
• Post drill announcement is scheduled in December 2015

Icewine #1 Exploration Well Presentation 5/11/2015​

IMHO the SP could rise in anticipation of good news in relation to the Icewine #1 Exploration Well and may further rise if good news eventuates. If it is really good such that the market believes that a farm-out is a foregone conclusion then we could see a re-rate.