02:00 Mon 20 Jan 2020
88 Energy Limited - Quarterly Report
QUARTERLY REPORT
Report on Activities for the Quarter ended
The Directors of
Highlights
Project Icewine
· Farm-out with Premier Oil Plc ("Premier") finalised and completion documents executed in the quarter;
· The
· Permit to Drill submitted - approval expected in
· All other contracting and logistical work is proceeding as planned ahead of the scheduled
Yukon Acreage
· Discussions continue with nearby resource owners to optimise the monetisation strategy of the acreage; and
· Permitting underway ahead of potential drilling in 2021 - subject to farm-out.
Western Blocks
· Assessment of strategy for future of leases underway.
Project Icewine
· Project Icewine Conventional
Farm-out Update
All conditions precedent to the farm-out agreement between
Operations Update
The
The Permit to Drill was submitted prior to the end of 2019, as planned, and approval is expected towards the end of January. This is the last major permit required prior to spud of the Charlie-1 well.
As per the farm-out agreement, initial cash call was receipted into the Joint Venture account in
All other contracting and logistical work is proceeding as planned ahead of the scheduled
About the Charlie-1 Appraisal Well
The Charlie-1 appraisal well has been designed as a step out appraisal of a well drilled in 1991 by
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
· Project Icewine Unconventional
Assessment of material from regional wells ongoing in order to conduct additional FIB-SEM analysis to confirm improved effective porosity and connectivity.
Additional analysis to be complimented by results from the Charlie-1 well, with the well designed to penetrate HRZ and gather additional data which will complement the ongoing additional analysis being conducted.
The Joint Venture plans to conduct a formal farm-out process to fund further appraisal.
Yukon Leases
Discussions are ongoing with nearby lease owners to optimise the monetisation strategy for existing discovered resources located in the vicinity of the Yukon Leases. The Yukon Leases contain the 86 million barrel Cascade Prospect*, which was intersected peripherally by Yukon Gold-1, drilled in 1994, and classified as an historic oil discovery.
Permitting underway ahead of possible drilling in 2021 - subject to farm-out.
* Refer announcement
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
Western Blocks
Assessment of strategy for future of leases underway, ahead of lease expiry in
Corporate
The ASX Appendix 5B attached to this report contains the Company's cash flow statement for the quarter. The significant cash flows for the period were:
· Exploration and evaluation expenditure totalled
· Cash call proceeds received from Joint Venture partners totalled
· Payments in relation to the debt facility interest totalled
· Administration and other operating costs
At the end of the quarter, the Company had cash reserves of
Information required by ASX Listing Rule 5.4.3:
Project |
Location |
Area (acres) |
Interest at beginning of Quarter |
Interest at end of Quarter |
|
|
|
||
Project Icewine |
Onshore, North Slope Alaska |
~482,000 |
64% |
64%1 |
Yukon Gold |
Onshore, North Slope Alaska |
15,235 |
100% |
100% |
Western Blocks |
Onshore, North Slope Alaska |
22,711 |
36% |
36% |
|
|
|
|
|
1 Assignment of interest to Premier in Project Icewine Area A completed in Q4 2019.
Pursuant to the requirements of the
Media and Investor Relations:
Email: admin@88energy.com
Neil McDonald/Derrick Lee Tel: +44 131 220 6939
This announcement contains inside information.
A pdf copy of this Quarterly Report, including the following figures and graphics, is available at
http://www.rns-pdf.londonstockexchange.com/rns/2152A_1-2020-1-17.pdf
· Graph Showing Charlie-1: Seven Stacked Horizons
· Table Showing Charlie-1 Targets
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13,
Name of entity |
||
88 |
||
ABN |
|
Quarter ended ("current quarter") |
80 072 964 179 |
|
|
Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date (12 months) |
||
1. |
Cash flows from operating activities |
- |
- |
|
1.1 |
Receipts from customers |
|||
1.2 |
Payments for |
(4,043) |
(30,711) |
|
|
(a) exploration & evaluation |
|||
|
(b) development |
- |
- |
|
|
(c) production |
- |
- |
|
|
(d) staff costs |
(465) |
(1,710) |
|
|
(e) administration and corporate costs |
(466) |
(1,757) |
|
1.3 |
Dividends received (see note 3) |
- |
- |
|
1.4 |
Interest received |
1 |
23 |
|
1.5 |
Interest and other costs of finance paid |
(595) |
(2,396) |
|
1.6 |
Income taxes paid |
- |
- |
|
1.7 |
Research and development refunds |
- |
- |
|
1.8 |
Other (JV Partner Contributions) |
12,387 |
23,860 |
|
1.9 |
Net cash from / (used in) operating activities |
6,819 |
(12,691) |
|
|
||||
2. |
Cash flows from investing activities |
- |
- |
|
2.1 |
Payments to acquire: |
|||
|
(a) property, plant and equipment |
|||
|
(b) tenements (see item 10) |
- |
(52) |
|
|
(c) investments |
- |
- |
|
|
(d) other non-current assets |
- |
- |
|
2.2 |
Proceeds from the disposal of: |
- |
- |
|
|
(a) property, plant and equipment |
|||
|
(b) tenements (see item 10) |
- |
- |
|
|
(c) investments |
- |
- |
|
|
(d) other non-current assets |
- |
- |
|
2.3 |
Cash flows from loans to other entities |
- |
- |
|
2.4 |
Dividends received (see note 3) |
- |
- |
|
2.5 |
Other: a) Bond Returned - State of Alaska b) JV Partner Contribution - Bond c) Bond Paid - State of Alaska |
- - (659) |
4,251 (2,549) (659) |
|
2.6 |
Net cash from / (used in) investing activities |
(659) |
991 |
|
|
||||
3. |
Cash flows from financing activities |
- |
6,530 |
|
3.1 |
Proceeds from issues of shares |
|||
3.2 |
Proceeds from issue of convertible notes |
- |
- |
|
3.3 |
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