ABN 80 072 964 179
HALF-YEAR FINANCIAL REPORT
30 JUNE 2022
CONTENTS
PAGE | |
CORPORATE INFORMATION | 3 |
DIRECTORS' REPORT | 4 |
AUDITORS' INDEPENDENCE DECLARATION | 12 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME | 13 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 14 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 15 |
CONSOLIDATED STATEMENT OF CASH FLOWS | 16 |
NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS | 17 |
DIRECTORS' DECLARATION | 25 |
INDEPENDENT AUDITOR'S REVIEW REPORT | 26 |
2
CORPORATE INFORMATION
DIRECTORS
Mr Philip Byrne (Non-Executive Chairman)
Mr Ashley Gilbert (Managing Director)
Dr Stephen Staley (Non-Executive Director)
Ms Joanne Kendrick (Non-Executive Director)
COMPANY SECRETARY
Ms Sarah Smith
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
Ground Floor, 516 Hay Street Subiaco
WA 6008 Australia
POSTAL ADDRESS
PO Box 352, Subiaco
WA 6904 Australia
AUDITORS
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
SHARE REGISTRIES
Computershare
Level 11, 172 St Georges Terrace
Perth WA 6000
Telephone: +61(8) 9323 2000
Facsimile: +61(8) 9323 2033
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
INTERNET ADDRESS
www.88energy.com
SHARE LISTINGS
ASX - 88E
AIM - 88E
OTC - EEENF
COUNTRY OF INCORPORATION AND DOMICILE
Australia
3
DIRECTORS' REPORT
Your Directors present their report together with the interim financial report of 88 Energy Limited (the Company or 88 Energy) for the six months ended 30 June 2022 and the independent auditor's review report thereon.
DIRECTORS
The names of the Company's Directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Ms Philip Byrne (Non-executive Chairman, appointed 2 August 2021)
Mr Ashley Gilbert (Managing Director, appointed 10 May 2021)
Dr Stephen Staley (Non-executive Director, appointed 9 April 2014)
Ms Joanne Kendrick (Non-executive Director, appointed 2 August 2021)
OPERATING AND FINANCIAL REVIEW
During the period, the Group has continued its principal exploration activities in Alaska and in February 2022 acquired a ~73% non - operated working interest in production assets located in the Texas Permian Basin through the 75% investment in Bighorn Energy LLC.
Highlights for the first half of 2022
A summary of significant activities that occurred during the first half of 2022 is below:
4
DIRECTORS' REPORT
Project Icewine
88 Energy progressed further studies and analysis across the Icewine East acreage, which included completing the mapping of the Shelf Margin Delta (SMD), Slope Fan Set (SFS) and Basin Floor Fan (BFF) play fairways onto the Project Icewine East acreage. In May 2022, the Company announced that Jordan & Pay completed an independent evaluation of the play fairways, utilising available well information from presentations publicly released by neighbouring project proponent, Pantheon Resources plc (AIM:PANR) (Pantheon). This was coupled with internal Company data (including Icewine-1 and Icewine-2 well logs and existing 2D seismic) and concluded that all Pantheon reservoir units (SMD, SFS, BFF) extended onto the Project Icewine acreage.
Figure 1: Third-party mapping indicates extension of all PANR prospect play fairways into Project Icewine
The Company also commissioned an in-depth petrophysical re-evaluation of Icewine-1 and the broader Icewine East area by independent petrophysical consultants (Stimulation Petrophysics Consulting, LLC and Snowfall Energy LLC). The consultants focussed on assessing Icewine-1 logs against intervals that flowed oil in Pantheon's acreage to the north. Pleasingly, a comparison of the tested interval in Alkaid-1 against a similar interval in Icewine-1 indicated favourable potential for a flow test of the same zone in the Icewine East acreage.
Pantheon's wells - Alkaid-1,Talitha-A and Theta West-1 - all flowed 35 to 40⁰ API oil from multiple Brookian reservoirs. Pantheon's testing has confirmed reservoir deliverability of light, sweet oil (see Pantheon releases of 7 February and 21 February 2022), which 88 Energy believes is positive for the prospectivity of the adjacent Project Icewine acreage. Data from the Talitha-A and Theta West-1 wells are not yet publicly available and as a result, only a qualitative comparison of these logs against Icewine-1 logs have been carried out to date.
Given the favourable petrophysical comparison between Icewine-1 and Alkaid-1, the Company is optimistic that a production test in the Icewine East acreage could potentially yield a similar or better result than seen during the testing of Alkaid-1. The Company also notes Pantheon's announcement of 7 July 2022 that it has spudded a horizontal production well in Alkaid, named Alkaid#2, to prove up the development concept (see also Pantheon release of 24 January 2022 and Figure 2 below).
5
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88 Energy Limited published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 22:53:02 UTC.