Sign up Australia
Proactive Investors - Run By Investors For Investors

88 Energy suspends Icewine#2 but remains upbeat on potential of HRZ play

“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”
oil workers at drill site
88 Energy reckons a multi-stage stimulation in a horizontal well would be more effective

88 Energy Ltd (LON:88E ASX:88E) has suspended production testing at the Icewine#2 well in Alaska.

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.

READ: 88 notes struggles recovering fracking fluid at Icewine#2

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.

View full 88E profile View Profile

88 Energy Ltd Timeline

Related Articles

Trinidad drilling
July 23 2018
The City broker’s bullish view comes after its analysts upgraded their sum-of-the-parts valuation for the Trinidad-focused oil producer by circa 20% to 35p, up from 29p previously
oil and gas operations
August 02 2018
The agreement includes up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest in the Ruvuma PSA, which would include the Ntorya project
Texas flag
September 04 2018
Well workovers in June boosted average gross production before royalties to around 44 barrels of oil per day

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use