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88 Energy advances key projects in first half

88 Energy said it continues to receive third-party interest in the HRZ shale project for a farm out

88 Energy Ltd -

88 Energy Ltd (LON:88E) has updated shareholders on the progress it has made over the first half of the year, including advancing the farm-out process of Project Icewine in Alaska.  

In the half-year to 30 June, the oil and gas firm selected Premier Oil as the preferred bidder for the farm-out campaign for Project Icewine’s conventional portfolio.

In August, 88 Energy completed a farm-out deal with Premier Oil, which will pay the full costs of an appraisal well, dubbed “Charlie-1”, up to a total of US$23mln to test the reservoir deliverability of the Malguk-1 discovery made by BP in 1991.

Meanwhile, the group said analysis of the Project Icewine’s unconventional portfolio in the first half confirmed that the HRZ shale play is an “excellent source rock with good potential as an economic shale play”.

“The company continues to receive third-party interest in the HRZ shale project and anticipates being able to integrate the data from the current evaluation into a dataroom by mid-2019 in order to commence a formal farm-out process,” 88 Energy said.

Elsewhere, a 3D interpretation and resource evaluation were completed on inversion product at the Yukon leases. 88 Energy said it has started talks with nearby lease owners to optimise the monetisation strategy for existing discovered resources located in the vicinity of the leases.

The Yukon Leases contain the 86 million barrel Cascade Prospect, which was intersected peripherally by Yukon Gold 1, drilled in 1994, and classified as an historic oil discovery.

88 Energy recently acquired 3D seismic over Cascade and high-graded it from a lead to a drillable prospect after final processing and interpretation.

At the Western Blocks in Alaska, a permit for the Winx-1 exploration well was approved by authorities in January and drilling started a month later. In March, multiple potential pay zones were identified in primary and secondary targets. The well was plugged and abandoned later that month but drilling operations were completed on time and without incident, and under budget.

88 Energy made a loss of US$29.3mln for the half-year due to impairments of the Winx-1, Icewine-1 and Icewine-2 exploration wells. It ended the period with cash of US$6.7mln.

Quick facts: 88 Energy Ltd

Price: 0.5708 GBX

Market: AIM
Market Cap: £60.86 m

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