Hartleys upbeat about 88 Energy’s Icewine project
Alaskan oil explorer, 88 Energy is poised to undertake an important drilling campaign which management indicated on Friday morning is likely to commence early in the second quarter.
A drilling contractor has been appointed with Managing Director, Dave Wall noting the benefits of employing a rig that has recently been in operation.
However, it is the highly prospective nature of the drilling site that has captured the interest of analysts at Hartleys.
The broker noted the additional resource potential identified for conventional leads across project Icewine acreage based on internal estimates total 710 million barrels of gross mean prospective resource (unrisked).
In November 2014, 88E entered into a binding agreement with Burgundy Xploration, allowing it to acquire a 77.5% interest (following spud of the first well) in a large acreage position on a multiple objective, liquids rich exploration opportunity.
Crunching the numbers on the gross mean prospective resource, this would equate to 550 million barrels attributable to 88E.
The total resource potential (conventional only), including previously reported leads is estimated at 1.14 billion barrels attributable to 88E.
With the prospect of significant upside from the upcoming drilling campaign, newsflow in April/May will be crucial in terms of assessing the value of the project and establishing its potential production profile.