Icewine #1 Drilling Update
News Update Due Share Price 0.0505p
This one of the popular oil and gas minnows listed on the AIM market today. Capital raised totals A$7,428,348 including Share Placement completed in November. Which was oversubscribed with the admission of the Ordinary Shares is expected to occur on or around 22 December 2015. This company has been a darling on ASX, AIM markets due to oversubscription and accommodating private holder’s in the placing offers.
Here is small overview for non shareholders of 88E
88 Energy: 88 Energy has a 78% working interest and operatorship in ~272,000 acres (~174,000 acres’ subject to formal award) onshore the prolific North Slope of Alaska (“Project Icewine”). The North Slope is the host for the 15 billion barrel Prudhoe Bay oilfield complex, the largest conventional oil pool in North America. The Company, with its Joint Venture partner Burgundy Xploration, has identified three highly prospective play types that are likely to exist on the Project Icewine acreage – two conventional and one unconventional. The Company plans to progress drilling and seismic acquisition in the near term to take advantage of the globally unique fiscal system in Alaska, which allows for up to 85% of CY2015 exploration expenditure to be rebated in cash.
On our last update on 88E http://www.share-talk.com/88e-group-report1.php We noticed the mixed reception RNS Number: 0660J received from the market and holders alike.
In today’s markets investors have a habit of short term investing and are willing to chase other stock while waiting on news from other companies. The one warning for early sellers on the last 88E RNS not holding or purchased on the dips, they could release an RNS update to the ASX Market as early as tomorrow morning.
The last RNS stated “The rig is currently pulling out of hole to pick up a core barrel and core the primary HRZ shale objective” When you take into consideration drill pipe is typically 27 to 32 feet in length or longer lengths of up to 45 feet. The tool pusher, team on the drill floor have had a good five plus day window to pull the drill string, tools out of the hole.
One Q I would like to touch on from tweets, DM I received while talking about the Icewine #1 Drill “Subject to hole conditions” This is a very critical stage of operations for the operators and 88E as a company.
Use LGO as an example lately of losing a tool down the well or OEX snapping the drill string on recovery back in the day, then none industry investors understand what is going on right now with the operators.
Icewine #1 Drill is an open hole and because this is exploration, companies usually only case a well once it goes in to production due to the high costs involved. For any company in this game, you are only as good as the operators you hire.
As we stated in the last article – The next market update should inform the markets these operations have been completed successfully and the core samples have been sent to the laboratory.
But the story does not end at this point because 88E have stated they will re-enter the well and target beneath the HRZ zone.
“Operations will then run into the hole to core the HRZ. Subject to hole conditions, the well will be deepened to test additional conventional zones of interest beneath the HRZ. The primary objective of the well is the HRZ shale formation, targeting a huge unconventional resource prize”
On a closing note, IF 88E do hit the shale formation they are targeting, carry out future CPR (Competent Persons Report) on seismic updates of their acreage, what’s not to like?
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Tomorrow l will be covering MXO Oil and the elephant in the room everyone is missing.