88E readies for Icewine#2 production testing
Coming off a strong session in the UK overnight, 88 Energy (LON | ASX:88E) this morning updated the market on its oil and gas project on the north slope of Alaska.
88E has a 63% working interest and operatorship in approximately 342,000 acres onshore the prolific North Slope of Alaska — Project Icewine. The North Slope is the host to the 15 billion barrel Prudhoe Bay oilfield complex, the largest conventional oil pool in North America.
88E, with its Joint Venture partner Burgundy Xploration, has identified highly prospective play types that are likely to exist on the Project Icewine acreage – two conventional and one unconventional.
Today’s news follows a previously provided update on May 30 regarding site clearance works at the Franklin Bluffs Pad ahead of flow testing of the Icewine#2 well.
88E has now reported that pressure build-up analysis at the site indicates no deterioration in fracture half-length.
This is good news, however the stock remains a speculative play and there is much work to be done, so investors should seek professional financial advice if considering this stock for their portfolio.
Following retrieval of downhole gauges in Icewine#2 on May 25, pressure build-up data was downloaded and processed. The data was then analysed and interpreted to determine whether any degradation of the fracture system created by the artificial stimulation had occurred.
The analysis showed that the fracture geometries of the first pressure build-up, in July-August 2017, when compared to those from the second pressure build-up over Winter, in September 2017-June 2018, are very similar, with estimated fracture half-length of 504ft and 500ft, respectively. This is encouraging and indicates that the fracture system created has not undergone degradation.
This, combined with there being no evidence of a build-up of debris in the wellbore, means no remedial action is required prior to commencement of flowback.
Mobilisation of equipment and personnel for the re-commencement of flowback of the Icewine#2 well, utilising artificial lift, is now in full swing and operations remain on schedule for start-up on June 11.
88E had a strong session overnight, rising 8.6% in the UK.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
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.
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.