$69 postpage LB
Featured

New Acquisition Boosts 88 Energy's Share Price

  • January 13, 2021 04:24 PM AEDT
  • Team Kalkine
New Acquisition Boosts 88 Energy's Share Price

Summary

  • 88 Energy Limited executed a Sale and Purchase Agreement concerning the acquisition of the Umiat Oil Field.
  • Umiat was historically discovered in 1945 and lies immediately close to southern border of Project Peregrine.
  • 88E looks to conduct a full field review at the area in an anticipation to determine a price which could help to commercialise Umiat as a separate development.
Gold MTF non-AMP

Exploration company 88 Energy Limited (ASX:88E) strives to generate significant gains to its shareholders by looking for emerging play types where the Company’s experienced team can capture the opportunities before big industry players come into the picture.

Given this backdrop, 88E’s latest ASX announcement features an update regarding the acquisition of the Umiat Oil Field, which sent its share price on a rally of 16.666% and quoted at $0.010 on 11 January 2021. This oil field is a historic oil discovery and is located on the North Slope of Alaska close to 88E’s existing projects.

DID YOU READ: 88 Energy (ASX:88E) Completes Bookbuild for a Placement Worth $10.07 million

Umiat Oil Field Location (Source: ASX Announcement 11 January 2021)

88E Inks Agreement to Acquire Umiat

88E inked a Sale and Purchase Agreement with Renaissance Umiat LLC and Malamute Energy, Inc regarding the purchase of the Umiat Oil Field through Emerald House LLC, which is wholly owned subsidiary of 88E.

The purchase consideration comprises of a 4% ORRI and assumption of the liability for the abandonment of the two wells, Umiat-23H and Umiat-18 wells. These wells were drilled by Linc Energy in 2013/2014 and the cost to abandon the two wells is projected around US$1 million.

INTERESTING READ: 88E Fast Tracks Farmout Work at Project Peregrine, Executes Rig Contract

There are two leases comprising 17,633 acres that form the Umiat Oil Field. These leases are in a unit that was created in September 2019 with an initial term of 10 years and the present circumstances of the unit require a well commitment by 31 August 2022.

Initially, Umiat was uncovered in the mid-1940s and by 1953, the well had witnessed drilling at 11 appraisal wells, out of which many were tested. The results showed that during a 4-day test, Umiat-8 had the highest flow rate of 5.9mmcf/d of natural gas, and on a 3-month test, Umiat-5 flowed 268 barrels each day.

RELATED: ASX:88E on a Roll at Project Icewine, net potential at Charlie 1 Well improved to 900 million barrels

Two wells, Umiat-18 and Umiat-23H, were drilled by Linc Energy and the area had witnessed little work until 2013/2014. However, testing of the Umiat-23H was undertaken with a sustained flow of 200 barrels each day and a top flow rate of 800 barrels each day.

Full Field Review Planned By 88E

In order to support the prospective future development Linc Energy had implemented significant engineering and environmental work. Notably, 88E’s Project Icewine leasehold has a route for access to infrastructure running directly through it.

INTERESTING READ: What Constitutes 88 Energy’s(ASX:88E) Rapid and All-round Progress During September 2020 Quarter?

Dave Wall, Managing Director of 88 Energy commented:

Source: ASX Announcement 11 January 2021

The Company now looks to conduct a full field review with a view to determine a certain oil price, where Umiat may be commercial as a separate development. This also aims to identify if it is possible to optimise the earlier development plan.

RELATED: 88 Energy Scores Big With Its Multiple World Class Assets In Alaskan North Slope

88E strongly believes that Umiat well shall significantly contribute to any further development, in case a discovery is made at Project Peregrine, where drilling is pending.

88E ended the trading session at $0.010 per share, an uptick of 5% since yesterday close, on 13 January 2021.

INTERESTING READ: Why is 88 Energy’s (ASX:88E) share price in green in last 2 trading session?

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK