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88Energy Ltd soars again as it plans fracking phase in Alaska

“Icewine #1 cored a new kind of hybrid resource play that appears to have numerous similarities to reservoirs known as Low-Contrast Low-Resistivity (LCLR), or Low Contrast Pay (LCP)."
88Energy Ltd soars again as it plans fracking phase in Alaska
Alaska potential to be unlocked by phase 2 believes 88

The rise in shares of 88Energy Ltd (LON:88E) continued as the Alaska-based oil group said it had completed phase one of its Icewine project.

Shares rose 26% to 3.88p to take the rise since the start of the year to more than 800%.

In short, 88 said: “Icewine #1 cored a new kind of hybrid resource play that appears to have numerous similarities to reservoirs known as Low-Contrast Low-Resistivity (LCLR), or Low Contrast Pay (LCP).

“These reservoirs are characterised by production metrics and performance more commonly associated with conventional resources.”

An independent resources report is scheduled for mid-April that will incorporate Icewine#1’s results.

Work has now started on phase 2, the company said, which will involve multi-stage fracking through a horizontal appraisal well, Icewine#2H.

The phase 2 exploration will unlock the resource potential, he added.

Dave Wall, managing director, added that the group had overcome three potential hurdles during the first phase: effective bottom seal and frackability; wet gas thermal maturity and matrix permeability.

“Based on this information, the company’s assessment is that the HRZ is a siliceous shale, most similar to the Haynesville and Marcellus, and will be highly amenable to fracture stimulation.”

Those fields gave rise to exceptional flow rates, though 88 expects liquids as opposed to gas.

“Further work to fine tune frac design is now underway and we also expect seismic acquisition to commence imminently,” Wall said.

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