88 Energy’s 2D seismic interpretation exceeds expectations

By Trevor Hoey. Published at Jan 13, 2017, in Energy

88 Energy (ASX:88E) has provided a positive update in relation to the conventional prospectivity of Project Icewine located in Alaska. In commenting on recent exploration data, Managing Director Dave Wall said, “The results from the 2D seismic interpretation continued to exceed our expectations for the conventional potential across Project Icewine”.

Additional resource potential has been identified for conventional leads across the project, and based on internal estimates the gross mean prospective resource (unrisked) is estimated to be 710 million barrels.

88 Energy is the operator of Project Icewine through its wholly-owned subsidiary Accumulate Energy Alaska Inc with a working interest of 77.5%.

Based on management’s estimates regarding the unrisked prospective resource this equates to 550 million barrels attributable to 88 Energy. The company estimates that the potential total net mean prospective resource attributable to 88 Energy is 1.14 billion barrels.

The fact that management believes there is a much more significant story that will play out in 2017, as the group prepares for the drilling of Icewine#2 which will test the production potential of the unconventional HRZ liquids rich resource play.

On this note, Wall said, ‘Whilst the conventional prospective resource is very large it is eclipsed by the potential of the HRZ, especially given the recently expanded acreage position, and it is also worth bearing in mind that the HRZ has been de-risked via analysis of the results from Icewine#1, and remains the company’s primary objective”.

It appears that 2017 will be a significant year for the company with the potential for a material share price rerating. When Patersons analyst, Jason Chesters ran the ruler across the stock in the latter part of 2016 he said, “In the medium term the successful completion of the Icewine#2 well and the intended flow tests, and the potential sale or farm in of a partner would be key catalysts”.

He has a speculative buy recommendation on the stock, and pointed to potential upside from the outcome of drilling on adjacent acreage to the North (Great Bear) where Otto Energy and its joint venture partners intend to drill between two and four wells on their acreage during the 2016-2017 drill season.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!