The junior explorer has been struggling to recover stimulation fluids from the well as quick as it would like.
Demobilisation of the equipment was completed over the weekend.
Along with its partners, 88 said it believes the results so far still support the potential economic viability of the HRZ shale play and attract a farm-in partner despite the issues.
In explaining its decision, the company said it reckons a “more significant program” is needed to de-risk the HRZ play, while the well also achieved most of the objectives: namely acquisition of a more sophisticated logging suite to complement the core from Icewine#1 and to determine whether a large slickwater stimulation could be executed successfully in the HRZ.
88 added that a multi-stage stimulation in a horizontal well is required to achieve connectivity to the reservoir and, something it thinks the data collected so far will help it to “confidently design”.
Still plenty of potential
“Ideally the Icewine#2 well would have delivered a stronger hydrocarbon flow rate and it is disappointing that this was not achieved; however, the Joint Venture has many positive takeaways from the well and remains confident about the potential of the HRZ play,” said managing director Dave Wall.
“Future evaluation of the large potential already identified is planned to be accomplished via farm-out and this process has already commenced.”
He added: “The 88E team is also extremely busy maturing our conventional projects at Icewine, Yukon Gold and the Western Blocks and will provide an update on these projects in the near future.”
Shares fell 17.7% in early deals on Monday to 1.05p.