88E retrieves excellent wireline data from Icewine#2

By Trevor Hoey. Published at May 22, 2017, in Energy

88 Energy (ASX:) announced on Monday that the company had completed wireline logging at its Icewine#2 project, located onshore North Slope of Alaska.

Management described the data quality as excellent, importantly complementing the core and logs retrieved at Icewine#1, which it hopes can be replicated from a production perspective.

Having achieved a positive outcome with wireline logging, the enhanced data suite will ensure optimal design of the planned stimulation program.

There was a hitch with the cementing of the 4.5 inch production liner, as hole conditions in the Pebble Shale Unit (beneath the HRZ production interval) prevented successful completion. However, management assured that this was a minor setback and had not altered the schedule for production testing, particularly given 88E is ahead of schedule on the project.

Hartleys analyst, Aiden Bradley examined 88 Energy’s (ASX:88E) prospects as the company prepared to execute its drilling campaign at Icewine#2.

He noted that based on the results of the Icewine#1 well, situated just 20 metres away, expectations are that this well will flow oil to surface in a range between 100 barrels of oil per day and 200 barrels of oil per day.

Bradley anticipates success would likely be sufficient to attract a major farm-in partner which would support the current valuation.

Despite recent weakness in the oil price and a lull in activity leading up to the drilling of Icewine#2, 88E has traded strongly in the last six months with its share price increasing 25% from 3.7 cents to an intraday high of 5 cents in early May.

It should be noted that broker projections and price targets as seen below are only estimates and may not be met. Also, 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.

As can be seen in the following chart, 88E has substantially outperformed relative to the Nymex Oil (light sweet crude) price movements over the last six months.

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.

The fact that 88E has been able to hold around early May levels despite the subsequent downturn in the oil price suggests that investors are confident that Icewine#2 will deliver.

Bradley has a valuation of 7 cents on the stock, implying upside of 50% relative to Monday morning’s opening price of 4.7 cents.

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!