88E 16.7% 0.5¢ 88 energy limited

Market perception of the available facts sets the share price,...

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    Market perception of the available facts sets the share price, one closely following the other. That perception gap can be either positive or negative to the share.
    I believe there is a negative bias in play currently, its formation can be traced to years of frustration and disappointment, as results disappoint and timelines extend.

    It is hard to seperate from that feeling as we sit at 1.2c, but an objective view point paints a better picture.
    The 1.2c is a reflection of the latest capital raise at 1.25c and that was the companies timing error. D Wall is quite specific on this in the podcast.”we thought the deal was realy good and we would get an uplift in share price” “undoubtedly the better option, both in hindsight and err h, prior to the deal being done was to raise a small amount of capital”
    In summary, the companies actions in deferring the capital raise, till after the farm out demonstrates their belief it was a good deal and they would capital raise at a better price. They acknowledge their misread on sentiment, but the strong belief in the farm out deal and Charlie 1 prospects is clear.

    Independent expert verification is provided by Pioneer backing Charlie 1. Pioneer have the world at their disposal to pick an exploration play from. Why this above all the other deals out there, the answer is always, in total with all the factors considered this one is the best use of their limited capital.
    Pioneer were tough markers on this project. Essentially concentrating on the Torok play of 1 billion barrels in place and yielded at only 25% recovery. On the costs side they have factored in the high side everywhere, in pioneers words “really hammered it” (seawater from Prudhoe bay, pumping oil all the way to pump station one etc ) “and it still easily flies through all our metrics” This from real experts who have spent the time in the data room to critically test and prove 88es assumptions.

    Charlie 1 is still 88es baby, it not called Torok, but I do note its location moved from the original plan. The seismic inversions point to that shift optimizing the Torok first, but still retaining a decent entry into Charlie itself. Charlie and Indigo as shallow wells have much to offer, porosity is generally better and drilling costs are lower. With the well named after it. I suspect 88e prioritized  this first, while Pioneer regard it as secondary.

    Check the two presentations linked for confirmation of the quotes if you haven't already listened. Or listen again they are both worth the time. Premier Alaska section begins around 35 minutes in.
    https://www.investis-live.com/premier-oil/5d307a239add6d1100dca1b3/onvd

    https://audioboom.com/posts/7373130...or-of-88-energy-answers-shareholder-questions
 
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Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
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