88 Energy Plc’s (LON:88E, ASX:88E) Icewine-2 has yet to deliver the sort of decisive result that investors have been hoping for.
The Alaska-focussed explorer, in a stock market statement, told investors that a week after restarting flow back operations the Icewine-2 is presently flowing back frack fluid at a rate of 70 barrels of oil per day.
A total of 4,802 barrels of stimulation fluid has so far been recovered and that equates to 17.25% of the injected fluid – so a further 1.25% has been flowed out of the well following the recent six-week hiatus.
Early hyperbole put the stock down around 30% in Monday’s early deal, albeit by about 9:30 it remained firmly on the back foot, down 17.27% at 2.03p.
Evidently, whilst some investors are still prepared to give the company the benefit of patience, others are grown tired of waiting.
88 Energy, on Monday, suggested that the flow back operations are only now making ‘connection’ with the targeted reservoirs.
It also told investors that the analysis of pressure data has indicated that there has been only a limited connection to hydrocarbon reservoir before the past 24 hours.
The company highlighted: “a small pressure build-up was observed, potentially indicating the first contribution to pressure from the reservoir itself. This is the first time that this has occurred since flow testing was initiated, including the previous testing period prior to shut-in.”
“The current flowback procedure is early stage and the significance of an implied pressure contribution from the reservoir and formation of gas hydrates cannot yet be determined,” it added.
88 Energy needs more time and more patience to properly evaluate failings and successes of the Icewine-2 programme, but, Monday morning’s share trading perhaps suggests investor sentiment may now be wearing thin.