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Another day and another ramptastic RNS emerges from the Icewine jam tomorrow factory owned by 88 Energy (88E). What we really want to see, of course, is the quarterly report for the three months to September 30th showing just how much of the June 30th net cash of A$20.3 million has been spunked away to money heaven. The answer to that will explian today's ramping.
The company states:
Interpretation of modern 2D seismic data acquired by 88 Energy in early 2016 has identified multiple large conventional leads in Brookian Sequence across the Project Icewine acreage
758 million barrels of prospective mean recoverable oil (gross) identified in current top 5 leads (587 million barrels net to 88E, based on internal estimates) *
“Alpha” lead located in close proximity to existing transport infrastructure and Trans Alaskan Pipeline with 118 million barrels prospective mean recoverable oil (gross)*
Further seismic interpretation and mapping ongoing: ~50% complete with potential for additional leads to
"Modern 2D seismic" says 88 Energy. That is a phrase designed to make Bulletin Board morons assume that you can take the telephone number estimates of "prospective" (that is to say guesstimated) reserves as almost Gospel.
The reality is that you cannot, However modern this data is it is just 2D. I'd take 3D seismic a bit more seriously but the only acid test is hideously expensive actual drilling.
This is a ramp but folks know of 88 Energy's propensity to dump, to place, into any pump and are wary. At 2.675p the market capitalisation is £104 million which discounts an awful lot of good news but nothing adverse. A very poor risk reward play in my view.
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