The oil and gas production company, 88 Energy Limited (ASX: 88E) today updated the stakeholders on its oil and gas operations on the North Slope of Alaska. The update covered the following: Project Icewine Conventional, Project Icewine Unconventional, Yukon Leases, and Western Blocks.
On the Project Icewine Conventional front, the company declared that a fast track farm-out process had commenced in August of 2018. However, the processing of the newly purchased 3D seismic was still underway. It is to be noted that the processing was finalised in October 2018, covering inversion, and it was noted that for the first time potential farminees could assess the mapped conventional resource potential on the Western Play Fairway project. Hence, potential farminees made requests to evaluate the opportunity, and the company granted the same. Further, the company informed in its statement that the farm-out process had progressed to the next stage, with the preferred bidder selected and the discussions with this regard are underway. The company warned that there is no guarantee that the parties would agree to the terms and close the transaction.
Reporting further on the Project Icewine conventional project, the company stated that in the last 18 months it had witnessed significant interest in the acreage to the west of Project Icewine. Near term transactional activity is to be expected with the on sale of an option acquired by Oil Search in 2017. This option is due to expire in June 2019 and includes acreage immediately to the south of the Western Blocks and immediately west of Project Icewine.
Reporting on the Project Icewine Unconventional, the company informed that Baker Hughes and the United States Geological Society (USGS) are continuing to apply the advanced evaluation techniques to the HRZ shale play, in addition to the tests on both core and cuttings obtained from the drilling of the Icewine-1 and Icewine-2 wells. The company reportedly is receiving good interest from the third party for the HRZ shale project, and it anticipates being able to integrate the data by mid-2019 in order to commence a formal farm-out process.
Youkon leases saw the completion of final processing of its 3D seismic, with interpretation and resource evaluation currently underway on the inversion project. The company has identified numerous prospective horizons on the acreage, including the cascade lead, which was interested peripherally by Yukon Gold-1, in 1994, and classified as a historic oil discovery.
On Western Blocks, the company stated that the data procured from the drilling of the Winx-1 exploration well would now be integrated into the existing dataset to develop their understanding of the Nanushuk depositional model, and further evaluate the remaining resource potential of the acreage.
Recently, the company also updated the exchange on its Winx-1 exploration well, and the same could be read here.
The stock has delivered a negative YTD return of 19.44%. On a short-term basis, the stock has delivered a return of -9.38%, and -23.68% in the past three months and one month respectively.
The shares of 88E are trading flat at A$0.014 on ASX. (As at 3:00 PM AEST, 20 March 2019)
88 Energy Limited (ASX: 88E) is in the small-cap space with a market capitalization at circa $88.64 million. The total number of outstanding shares are ~6.33 billion. The avg. trading volume is 13,147,010. The Stockâs 52-week high price is A$0.051, and the 52-week low price is A$0.013. As per the latest ASX declaration, the companyâs EPS stood at -0.001 AUD.