First thing to note, not as much food on show compared to The Globe meeting 8 months ago! Good for me as I am on a diet.
Anyway, I am not going to comment much on the presentation or go into too much detail for a couple of reasons:
1) You will be able to watch last nights presentation when it is uploaded soon and make judgements for yourself.
2) There have already been some excellent summarising posts today/last night. Most recent from MrMartini at 09.36
After reading some of the posts in the past 12 hours its funny how most of them and the noise is from people who did not attend and had no intention to attend. Usual suspects throwing the usual froth. None of them are brave enough to come to the presentation in person and speak to Dave themselves.
On the train home, I tried to reflect on the presentation from a new investors point of view and not from my view as an existing shareholder. As a new investor, would I be happy enough on the presentation and upcoming company milestones, to invest now? The answer, YES and especially at 1.2 pence.
As a shareholder pre-icewine 2 results, I like everyone else was disappointed with the outcome. Most interesting was that Dave said we did see some liquid oil traces but not enough to RNS it. So for me the big message to take away was it is still WORK IN PROGRESS. There are specialist guys working on it, they need to tweak the engineering to get it right. But they have learnt a lot from existing operations to date. The next action we will see on that will be back end of Q2 2019 for farmout, so I am not expecting anything from unconventional until then. As a shareholder, mentally I am over the disappointment of the summer results and I am now firmly concentrating on the two major events we have coming up in the next 6 months which could significantly increase the share price.
They are:
1) Conventional Farm Out - Hard data room to open next week. We are only speaking to tier one companies right now. Dave defined tier one companies as groups that if we were to farm out to, there would be no dent in your balance sheet. Step forward your Shells & ConocoPhillips. If we do a deal here with a tier one company on favourable terms it will be more than enough to significantly rerate the share price. If the big boys want in, 88E must be looking at something good. It sounds like we are going for a deal worth several hundred million in cash.
Conventional is now 1.75bn net to 88E. Let that number sink in.
2) Winx Drill - 144m net to 88E
Drill coming up in Feb-March 2019. This deal was a steal and I only realised it last night when speaking to Dave one to one and how the deal came about. Very opportunistic and in my opinion is little understood by existing shareholders. Look at its location and how close it is to the successful Horseshoe#1 Oil Discovery. This play is where our first barrel of oil will come from and its only 6-7 months away.
88E Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
(20min delay)
