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88 Energy - Ultra High Impact Drilling Q1 2020

lse:88e

#1

Website : http://88energy.com/

Listed on UK AIM and Australian ASX

Sept 2019 Presentation : http://clients3.weblink.com.au/pdf/88E/02141921.pdf


#2

Write up :

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#3

Going to be a lot of churn as the recent placing shares at 0.7p are sold at 5% to 15% profits…but once that overhang is clear the upside is staggering.

480 MMBO net potential to 88E from Charlie-1.

480 MMBO x 4$ in the ground sale value is 1.92 Billion dollars.

1.92 Billion dollars divided by 6.332 Billion shares in issue is 0.3 US$ per share value or 23 pence per share…

Current price 0.7p a share…upside from Charlie-1 well 23 pence a share… based on sale at 4$ per barrel on success.

This ignores everything else the company has, including Shale rights, other prospect, other targets…

Alaska has infrastructure and production, all the big players are working there already Repsol, Conoco Phillips, Armstrong etc…

Is there any other stock that has this tremendous upside potential in Q1 2020 ? Nope…not in my view.


#4

…London-based newcomer Premier Oil, in partnership with Australian independent 88 Energy and Texas independent Burgundy Xploration, plans to drill this winter to further evaluate a block of leases called Project Icewine, 50 miles southwest of Prudhoe Bay.

We’ve known since the 1960s this area holds potential for oil discoveries, and these optimistic independents believe they can bring this prospective area into production…


#5

Good to listen again to this September 2019 interview with the MD :

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#6

https://www.petroleumnews.com/pnads/600161842.shtml


#7

88E quarterly report released on ASX.

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#8

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#9

What is going to make 88E so exciting next year when drilling the Charlie-1 well is that they are ASX listed, and ASX rules mean they have to update drilling progress every week. Each target is going to have its own RNS…so with 7 stacked conventional and a final shale target, thats a lot of RNS when this is drilling…a lot of chances for the share price to go well up on any oil strike in any target.


#10

#11

New Cenkos note out today on 88E. Unrisked valuation of 47.8p a share.

Extract of the Cenkos note below:

Valuation - Drilling of the Charlie-1 well will be a defining moment for the Company, as it seeks to prove the conventional potential of the Project Ice wine acreage. We have updated our model for both the HRZ Shale and the Yukon Leases, whilst updating a full DCF model for the Icewine Conventional acreage. The result is an increase in our valuation and our price target to 4.8p and reiterate our BUY recommendation.

Whilst the early stage nature of 88 Energy’s portfolio makes our valuation speculative, the upside potential is huge, unrisked, we value the 88 Energy portfolio at 47.8p per share or US$4.8bn.


#12

Here is a download link to the November 2019 Cenkos note on 88E, in PDF format.

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#13

https://pbs.twimg.com/media/EJUMT6cU8AAU93T?format=jpg&name=medium


#14

https://www.petroleumnews.com/pntruncate/964712684.shtml