Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

88 Energy’s Icewine is ‘compelling’, broker says

The AIM quoted shares advanced more than 300% this week following the release of the latest results from the Icewine well.
88 Energy’s Icewine is ‘compelling’, broker says
Patersons analyst Jason Chesters pointed to upcoming catalysts.

88 Energy’s (LON:88E) Icewine is a ‘compelling’ project despite low oil prices, according to Australian broker Patersons.

Analyst Jason Chesters, in a note, has highlighted that Icewine is well located and near vital infrastructure, and pointed to cost advantages.

The AIM quoted shares advanced more than 300% this week following the release of the latest results from the Icewine well. 

Those results indicated the project is so far going to plan. Analysis has confirmed that the HRZ shale formation is permeable, and it believes the shale is sufficiently porous.

And this week’s update indicated that a large part of the acreage is located in a ‘sweet spot’ for thermal maturity.  The upshot of this is that the potential hydrocarbon resource is believed to comprise oil (with relatively low viscosity) and ‘wet’ gas.  These details are not in themselves conclusive of a commercial success, but are plainly encouraging.

For the lay-person what probably matters most is that the findings conform to pre-drill expectations.

Patersons reckons the remainder of the Icewine 1 well results and analysis will provide further share price catalysts, and also highlights another will be an independent resources report.

“Success in these efforts could act as a catalyst for a farm-in partner or potentially a buy-out,” Chesters added.

View full 88E profile View Profile

88 Energy Ltd Timeline

Related Articles

UtilityMeter.jpg
November 25 2016
During its last fiscal year, OPG generated a record 3.2 billion units of electricity.
pic of VOG's gas facility
August 17 2017
La-107 had successfully reached its target depth of 3,180 metres
Greka drill unit
August 16 2017
The AIM-quoted China-focussed well driller has been boosted by new deals with PetroChina.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use