What’s the upside for 88 Energy?
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
Hartleys analyst, Aiden Bradley has run the ruler across 88 Energy (ASX | AIM: 88E) as the company progresses with its drilling campaign which is expected to see it positioned to undertake production testing at the Icewine#2 oil reservoir located on the North Slope of Alaska in June/July.
Bradley 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.
While Bradley noted that one well does not prove a ‘Play’, he 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, 88E has traded strongly in the last two months with its share price increasing more than 30% from 3.8 cents to an intraday high of 5 cents on Monday.
However, this is well shy of Bradley’s valuation of 7 cents, implying upside of 40% to yesterday’s high, and he has a speculative buy recommendation on the stock.
While acknowledging the benefits of success in the unconventional Icewine project, he believes the share price doesn’t capture the value of its 15 conventional leads and a potential resource of over 1 billion barrels net as outlined below under ‘conventional leads’.
It should be noted here that broker projections and price targets 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.
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.