88 Energy increases acreage and prepares for active drilling campaign
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
88 Energy (ASX | AIM: 88E), an explorer with multiple sites in Alaska has provided an update of its tenement position following the allocation of new acreage. The highlights are as follows.
Summing up these developments, 88E’s Managing Director, Dave Wall said, “Our success in this bid round provides us with the ability to significantly increase our acreage position on the North Slope and highlights the confidence that management has in both the HRZ unconventional play as well as the conventional prospectivity at Project Icewine”.
The following map shows the key areas of interest for 88E in relation to the HRZ unconventional play.
Wall highlighted that the upcoming drilling of Icewine#2 in the first half of 2017 would test the flow potential of the HRZ, and with additional acreage the company has maximised the potential upside exposure in the event of success.
Vintage wells suggest lease area is prospective for hydrocarbons
Importantly, vintage exploration wells within the newly acquired lease area encountered hydrocarbon shows within the prospective play fairway. Management views this as encouraging and it will provide assistance in prospectivity analysis.
After Hartleys analyst, Simon Andrews, reviewed 88E’s modelling in relation to Project Icewine in June he attributed a speculative buy recommendation to the company, noting that the group’s modelling based on successful flow rates indicated and an oil price of US$39 per barrel justified continued exploration and development of Project Icewine.
It should be noted that this is still a speculative stock 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 not be replicated. Those considering this stock should seek independent financial advice.
Project economics looking attractive in a more efficient exploration environment
Andrews underlined the fact that the market had been concerned that the relatively higher cost environment in Alaska would mean that Project Icewine would require an oil price above US$50 per barrel to be economic.
Not surprisingly, since the rebound in the oil price which has seen it move well above US$50 per barrel, 88E’s share price has increased more than 10%. Whether this is the start of a more sustained run will possibly depend on the group’s exploration results over the next six months
With regard to the company’s prospects for success in a challenging industry, Andrews said, “The huge number of wells drilled in the Lower 48 states has enabled operators to identify the sweet spots in a particular basin, but to also achieve operational efficiencies with better frac designs generating higher flowrates, faster drilling and longer laterals, effectively improving overall field economics”.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.