Shares in 88 Energy rally as production liner fitting successfully completed
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) provided a promising update in relation to its Icewine#2 drilling campaign located onshore North Slope of Alaska on Monday morning.
As a backdrop, an operations update released last week contained mixed news in that a positive outcome had been achieved with regard to wireline logging, but there had been a problem encountered in the cementing of the 4.5 inch production liner, as hole conditions in the Pebble Shale Unit prevented successful completion.
Management confirmed at the time that this would not affect progress with the broader campaign, nor would it affect the production testing schedule.
However, on occasions these factors result in negative share price fluctuations, and 88E’s shares came off slightly towards the latter part of the week, although this could also be attributed to a sharp decline in the oil price, which recovered slightly on Friday.
Consequently, it wasn’t surprising to see the 88E’s shares react positively to news released by the company today which indicated that the production liner had been successfully cemented in place and that preparations were on track for execution of main stimulation in the third week of June.
Production testing has the potential to be a substantial share price catalyst, and it wouldn’t be surprising to see the company’s shares rally further ahead of the news, particularly given the current price represents a discount to broker price targets.
It should be noted that 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.
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.
