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88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) Under Accumulation as Recent Tests Near Project Icewine Confirm Light, Sweet Oil from Multiple Reservoirs

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1 year ago

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88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) is currently trading right at historical support levels and is under accumulation at these levels. Recently the Company reported that recent exploration and third-party mapping near its Icewine leases on Alaska’s North Slope suggest that 3 different targets extend into the Project Icewine leases. Tests from Pantheon Resources have confirmed light, sweet oil from multiple reservoirs. The Company has also confirmed that “internal 88E data, including Icewine 1 and Icewine 2 well logs and existing 2D seismic, indicates that all play fairways extend into the Project Icewine lease holding. 

88 Energy has recently indicated they are in discussions in relation to a potential farm-out of the Project Icewine acreage. Due diligence activities and negotiations are advancing with a third party, including the related work program terms and structure. Execution and completion of the potential transaction is not guaranteed and remains subject to all documentation being agreed and due diligence completed. There is no guarantee that negotiations will lead to a binding agreement or a completed transaction. This has created a special situation for 88 Energy as the stock was way oversold on the Merlin 2 plug; the Company is in a strong financial position, with zero debt, $32 million in the treasury and total oil prospects for their wells targeting at least 1.638 billion barrels of oil in the Permian Basin. Management expects the Company’s financial position will be further strengthened with projected cash flows from recently acquired portfolio of Texas production assets, Project Longhorn. 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) is an Alaska-focused oil exploration and appraisal company across ~440,000 net acres on the Alaskan Central North Slope and NPR-A regions, with a diversified portfolio of four highly prospective project areas: Project Icewine, Yukon Leases, Project Peregrine and the Umiat oil field. The company is the Operator across all of its portfolio of world class exploration and appraisal assets. 88 Energy’s drilling programs maintain adherence to the strict environmental regulations that exist in the State of Alaska. It’s drilling programs also provide significant job opportunities to local Alaskans. 88 Energy’s purpose is to build a successful exploration and production company that delivers material returns to its shareholders and contributes to stakeholders and development of the regions in which it operates in. 88 Energy has adopted the World Economic Forum Environment, Social, Governance (ESG) reporting framework to report against key sustainability metrics including governance, ethical behavior, carbon emissions, water consumption, diversity and inclusion. In our last article on 88 Energy we wrote more about the Company’s projects; Project Icewine, Yukon Acreage, Project Peregrine and the Umiat Oil Field. Project Icewine map is featured below.

The results of Pantheon’s Talitha-A well, combined with its earlier Alkaid-1 (2019) well, have been considered as part of a re-evaluation of 88 Energy’s Icewine-1 well data. Subsequent and independent comparisons of the zone that was tested and flowed light oil in Alkaid-1 at “80-100 BOPD light oil” (see Pantheon release of 25 March 2019) against the Icewine-1 well, have revealed the porosity and resistivity of a similar 110 ft net section in Icewine-1 well to be higher. Higher porosity is indicative of better reservoir quality and higher resistivity is an indicator that greater amounts of hydrocarbons are present. Given the favorable petrophysical comparison between Icewine-1 and Alkaid-1, the Company is optimistic that a production test in the Eastern Icewine acreage could yield a similar or better result than seen during the testing of Alkaid-1. 

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EEENF

 

Following the successful testing at Talitha-A, Pantheon moved to test the BFF fan prospect in their Theta West well, reporting “light 35.5-38.5 degree API gravity oil at rates that averaged over 57 barrels of oil per day” (see Pantheon release of 24 March 2022). All reported Pantheon tests to date have been performed on vertical, stimulated wells. 

Following the recent results from the Talitha-A and Theta West-1 wells drilled by Pantheon, 88 Energy has a positive view of the potential of the SMD, SFS and BFF play fairways that extend onto the Icewine acreage. In particular, the Company notes the relative consistency of results over a large area to the north, suggestive of reasonably homogeneous reservoirs that potentially extend into 88 Energy’s acreage. The Company also notes Pantheon’s planned development wells are expected to produce at rates of over 1,000 BOPD per well via long horizontal wells with multi-stage hydraulic fracturing technology (see Pantheon release of 24 January 2022). 

88 Energy is in the process of finalizing mapping of the SFS and BFF play fairways onto the Icewine acreage and expects this work to be completed in April 2022. Once complete, the combined mapping of the three prospects (SMD, SFS and BFF) is set to form the basis of an updated resource estimate at Project Icewine, scheduled for completion in Q2 2022. 

88 Energy advises that it is in ongoing discussions in relation to a potential farm-out of the Project Icewine acreage. Due diligence activities and negotiations are advancing with regard to the potential farm-in by a third party and the related work program terms and structure. Execution and completion of the potential transaction is not guaranteed and remains subject to all final documentation being agreed and due diligence completed. There is no guarantee that negotiations will lead to a binding agreement or a completed transaction. 

In its ASX April 8 announcement, 88 Energy summed up the good news in the following highlights: 

  • Preliminary third-party mapping of the Shelf Margin Delta play indicates extension of the SMD play fairway, where neighbor Pantheon Resources has had significant success in recent months, onto 88E’s Project Icewine leases.
  • Mapping of Seabee Lower Basin Floor Fan (BFF) and Slope Fan System (SFS) approaching finalization.
  • Completion of independent resource update for Project Icewine scheduled for Q2 2022.
  • Discussions and negotiations with potential Project Icewine farm-in parties ongoing.
  • Development of forward work program to assess the potential of the SMD, SFS and BFF play fairways on the Project Icewine acreage is progressing.

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Currently trading at a $150 million market valuation 88 Energy has 14,811,076,196 shares outstanding, is 100% debt free and has $32 million in the treasury. Whie the recent Merlin 2 plug decimated the share price, it also created a major buying opportunity; the Company is stronger than ever currently targeting at least 1.638 billion barrels of oil in the Permian Basin and a healthy cash balance that will be further strengthened with projected cash flows from recently acquired portfolio of Texas production assets, Project Longhorn. And now recent exploration and third-party mapping near its Icewine leases on Alaska’s North Slope suggest that 3 different targets extend into the Project Icewine leases. Tests from Pantheon Resources have confirmed light, sweet oil from multiple reservoirs. This is big news for 88 Energy and should have a significant impact on trading over the coming week. We will be updating on 88E when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with 88E.

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Disclosure: we hold no position in 88E either long or short and we have not been compensated for this article

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Emerging Markets

Strong Financials and Social Media Buzz Propel Forza X1, Inc. (NASDAQ:FRZA) to New Heights

Published

2 days ago

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June 6, 2023

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Forza X1, Inc. (Nasdaq: FRZA) shares witnessed an exceptional and unforeseen surge in its share price, skyrocketing by 151% early morning of June 5th, 2023.

Forza X1, Inc. (Nasdaq: FRZA) shares witnessed an exceptional and unforeseen surge in its share price, skyrocketing by 151% early morning of June 5th, 2023. This surge was accompanied by an unprecedented level of trading volume, marking a significant departure from the previously observed average. Notably, the stock’s trading volume had been relatively low in recent months, with numerous days experiencing trading activity of less than 1,000 shares. Without any apparent news or filings, the cause behind this sudden surge remains a subject of intrigue and speculation among market participants.

What happened?

Firstly it’s important to note that $FRZA is a spin-off of Twin Vee PowerCats Co. (Nasdaq: VEEE). $VEEE is the parent company handling the design, manufacturing, and distribution of recreational and commercial, off-shore power catamaran boats while $FRZA is the new developer of electric sport boats with a mission to accelerate the adoption of sustainable recreational boating.

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Upon examination of the company, no discernible filings or press releases have been identified to account for today’s remarkable shift. However, it seems that a tweet disseminated by the company caught the attention of retail investors, subsequently generating an enormous surge in trading volume.

This recent occurrence serves as yet another compelling demonstration of the significant impact that the retail community can exert when armed with information regarding a small float micro-cap stock, particularly when the conditions align favorably and validate the potential for substantial gains. The tweet, skillfully crafted by the company’s social media team, featured a compelling GIF and clever “Don’t miss the boat” blurb, demonstrating a keen understanding of their business’s essence. 

The timely and engaging content proved to be a perfect execution, capturing the attention and imagination of investors in a manner that resonated deeply with the nature of the company’s operations.

Overview of Twin Vee PowerCats Co. Financials

Could the surge in share price also reflect the market’s enthusiastic response to Twin Vee’s strong financial results for the first quarter of 2023? 

On May 15, 2023, Twin Vee PowerCats Co. released its financials demonstrating a substantial increase in net revenue and notable improvements in the gas-powered boat segment.

https://twitter.com/JohnZidar/status/1665685698400141313?s=20

Twin Vee PowerCats Co. (Nasdaq: VEEE) reported strong financial results for the first quarter ended March 31, 2023. The company experienced a notable 51% increase in net revenue, reaching $8.9 million compared to $5.9 million in the same period last year. The gas-powered boat segment achieved a net income of $181,000, significantly improving from the net loss of $626,000 in Q1 2022.

However, as per GAAP accounting policy, Twin Vee’s consolidated financial statements resulted in a total net loss of $1.8 million for the quarter, primarily due to their majority ownership in Forza X1, Inc. (Nasdaq: FRZA), an electric boat company. Twin Vee reported cash, cash equivalents, restricted cash, and marketable securities of approximately $12.6 million as of March 31, 2023.

The company has been expanding its product lineup, including introducing the Aquasport mono-hull boat brand. Twin Vee is confident these efforts will contribute to business scalability and brand growth. They aim to optimize inventory levels and production costs while closely monitoring market conditions, dealer inventories, and economic indicators.

Financial highlights for Q1 2023

  • Total revenue: $8,877,000 (51% increase compared to Q1 2022)
  • Gross profit: $3,222,000
  • Net income from gas-powered boats segment: $182,000
  • Net loss from Forza X1 (electric boat entity): $2,005,000
  • Loss from Fix My Boat (franchise business): $5,000
  • Adjusted net loss (excluding non-cash charges): $1,347,000
  • Adjusted net income from gas-powered boats segment: $265,000

Twin Vee’s consolidated cash, cash equivalents, restricted cash, and marketable securities were $23,457,000 as of March 31, 2023. Forza X1 reported $10,683,000 in the same category, while Twin Vee’s core business had $12,643,000, and Fix My Boat had approximately $132,000.

We will closely monitor the performance of Forza X1, Inc. (Nasdaq: FRZA) in the coming weeks, considering that it is a spinoff from its parent company. It is crucial to conduct thorough research, particularly for companies like FRZA that have yet to achieve profitability. However, it is worth noting that the parent company has been making notable progress, as evidenced by its recent financial results, which revealed a substantial increase in the bottom line.

We will update you on FRZA when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Emerging Markets

Aclarion Inc (NASDAQ: ACON): A Breakthrough Partnership

Published

1 week ago

on

May 31, 2023

By

Aclarion, Inc. (NASDAQ: ACON) shares rocketed 157% Tuesday morning after their commercialization agreement with the London Clinic.

Aclarion, Inc. (NASDAQ: ACON) shares rocketed 157% Tuesday morning after their commercialization agreement with the London Clinic. The London Clinic is UK’s most renowned independent, private hospital, established 1932 with their Spine Clinic being the first specialist spinal unit based in England back in 1997.

“With a focus on providing the very best healthcare outcomes, The London Clinic is an ideal customer for Aclarion as the company works to deliver the Nociscan solution to physicians and patients around the world,” said John Sutcliffe MD, Neurosurgeon and Founder of London Spine Clinic. “The engagement with Aclarion will allow London Spine Clinic to continue offering the high-quality care our patients have come to expect. Patients need a careful assessment, diagnosis, and understanding of the different treatment options. Aclarion’s innovative Nociscan solution will enable us to objectively assess biomarkers associated with low back pain and enhance the precision of each diagnosis.”

More on Nociscan Technology

Aclarion, Inc.’s Nociscan Technology is an innovative medical solution that aims to revolutionize the diagnosis of disc-related conditions. They leverage biomarkers and proprietary augmented intelligence algorithms to help physicians identify the location of chronic low back pain.

What’s exciting is its advantages over the current standard of care. It offers a non-invasive approach, ensuring patient comfort and safety. Given it’s non-invasive, that also means 0 pain with 0 radiation (typically associated with traditional discography). The best part is it can seamlessly integrate into standard lumbar MRI protocols, making it a convenient and efficient option for healthcare providers. 

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The procedure takes approximately 25-45 minutes, thoroughly evaluating spinal discs without compromising accuracy. Additionally, Nociscan technology offers significant cost savings, with a list price of $1,450, making it an affordable alternative to traditional discograms. Overall, Aclarion, Inc.’s technological advances represent a significant push forward in disc-related diagnostic techniques, prioritizing patient well-being, convenience, and affordability.

https://twitter.com/TigerLineTrades/status/1663527784143093762?s=20

Nociscan Study

They also recently completed a study that spanned two years and involved 78 patients at a single site. The success rate soared to an impressive 85% for patients whose treatment strategy aligned with the disks identified by Nociscan. This represented a remarkable 22% improvement over patients whose treatment strategy did not consider the insights provided by Nociscan.

Aclarion expressed confidence that the results of the trial demonstrate the potential of Nociscan to assist physicians in successfully treating DLBP. Dr. Matthew Gornet, orthopedic surgeon and lead author of the study, enthusiastically endorsed Nociscan, stating, “The two-year surgical outcomes of the clinical trial provide unequivocal evidence of its effectiveness, particularly with regards to the primary endpoint, the Oswestry Disability Index (ODI). I firmly believe that Nociscan has the potential to revolutionize the standard of care and accurately aid all physicians treating chronic low back pain.”

It is worth noting that although Nociscan was performed on all patients in the study, it was not part of the surgical decision-making process, as highlighted by the company.

Conclusion

The commercial agreement between Aclarion, Inc. and the prestigious London Clinic signifies a significant milestone for both parties, carrying the potential for global recognition, revenue growth, and scalability. By integrating Aclarion’s innovative Nociscan Technology, the London Clinic demonstrates its commitment to delivering cutting-edge healthcare to optimize patient well-being and enhance clinical outcomes. Furthermore, the partnership’s success holds the potential for scaling Nociscan Technology to other institutions and markets, propelling Aclarion, Inc. to become a global leader in non-invasive medical technologies while driving substantial revenue growth.

We will update you on ACON when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Emerging Markets

Aemetis Inc. (NASDAQ: AMTX) Pioneers Renewable Fuel Market with EPA Approval

Published

3 weeks ago

on

May 21, 2023

By

Aemetis (NASDAQ: AMTX) shares surged 105% this week. The renewable natural gas and renewable fuels company received approval from the EPA.

Aemetis, Inc. (NASDAQ: AMTX) shares surged 105% this week. The renewable natural gas and renewable fuels company received approval from the U.S. EPA to generate renewable identification numbers (RINs) under the federal Renewable Fuel Standard. They have six dairy biogas digesters up and running, with a seventh one scheduled to start operating in June 2023.

Aemetis plans to generate multiple sources of revenue from its renewable natural gas. They will sell the gas to replace petroleum diesel in transportation, sell California Low Carbon Fuel Standard credits to fuel blenders who need to meet carbon reduction requirements in California, sell the RINs generated under the federal Renewable Fuel Standard, and benefit from production tax credits starting in 2025 under the Inflation Reduction Act.

They have completed constructing and operating six dairy digesters, a biogas pipeline spanning over 40 miles, a central facility to upgrade biogas to renewable natural gas, and a utility pipeline interconnection unit. The renewable natural gas is injected into the utility gas system and stored underground until Aemetis Biogas obtains carbon intensity (CI) pathway approvals from the California Air Resources Board (CARB) to sell credits under the California Low Carbon Fuel Standard.

They have already completed 90 days of renewable natural gas production and data collection required for the CARB approval process. While the final pathway is under review by CARB, Aemetis can use a temporary CI pathway with a value of -150, allowing them to start generating revenue in the third quarter of 2023.

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Andy Foster, the president of Aemetis Biogas Inc., expressed excitement about the approval of Aemetis Biogas for generating D3 RINs, as it marks a significant milestone towards generating full product revenue. He emphasized that the company’s investments since 2019 have directly reduced greenhouse gas pollution, improved air quality in Central Valley communities, and created jobs. Aemetis is committed to expanding their network of dairy digesters and producing more carbon-negative renewable natural gas to replace petroleum diesel.

The dairy digesters, pipeline project, and biogas-to-RNG facility funding includes grants from the California Department of Food and Agriculture and the California Energy Commission. Aemetis also closed a $25 million long-term financing deal with Greater Commercial Lending last fall, supported by a loan guarantee from the USDA. This project financing has a low fixed interest rate for the first five years and spans over 20 years.

Aemetis has plans to file applications for an additional $100 million of loans from the USDA’s REAP loan program. These funds will support the engineering, permitting, and construction of 31 more dairies. Each loan application will be limited to a maximum of $25 million and carry a 20-year repayment term.

https://twitter.com/Theweedfarmer/status/1658946668052504576?s=20

Where could Aemetis, Inc. (NASDAQ: AMTX) be in 5 years?

The company has an ambitious Five Year Plan to generate substantial revenue and reduce air and carbon pollution. The plan projects $2.0 billion in revenues, $496 million in net income, and $682 million in adjusted EBITDA by 2027, with strong compound annual growth rates. Aemetis aims to expand its operations by producing Renewable Natural Gas (RNG), Sustainable Aviation Fuel (SAF), Renewable Diesel fuel (RD), and other low-carbon products. The plan emphasizes the positive financial impact of the Inflation Reduction Act.

The plan highlights the financial benefits of the Inflation Reduction Act, which enables the transfer of tax credits and incentives related to production, projected to improve net income by $341 million in 2027.

The plan also focuses on revenue growth in all product lines, including expanding the dairy RNG business, constructing a renewable jet/diesel plant, implementing carbon sequestration, and improving energy efficiencies. 

The company has already achieved significant milestones, such as completing biogas pipeline construction, upgrading facilities for biogas-to-RNG production, and progressing in carbon sequestration and renewable jet/diesel plant development. The company has also secured a biodiesel purchase agreement in India and made strides in constructing a solar microgrid and implementing energy-efficient measures.

We will update you on AMTX when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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