88 Energy Ltd (LON:88E) told investors that the Winx-1 exploration well observed oil shows but preliminary analysis indicates that they were “at the lower end of the range required for commerciality.”

The shows were observed in the Nanushuk formation which was the well’s primary target, meanwhile, no oil shows were present in a shallower secondary target.

88 Energy described the Nanushuk shows as ‘weak to moderate’, with initial petrophysical analysis indicating potentially high water saturation.

Drilling continues to test deeper objectives, 88 Energy said.

On AIM, 88 Energy shares dropped 0.26p or 24% to 0.77p.