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88 Energy shares jump as it prepares for Icewine#2 fracking after completing log analysis

Last updated: 15:45 06 Jun 2017 BST, First published: 07:45 06 Jun 2017 BST

Northern Lights
Icewine#2 is exploring the HRZ shale in Alaska

88 Energy Limited (LON:88E ASX:88E) saw its shares jump 11% higher today on news the AIM-listed firm is preparing for the artificial stimulation or fracking of its Icewine#2 well in Alaska and flow testing after successful completing log analysis.

The company said it no longer needs to carry out micro stimulation after gaining enough insights in to the stress profile and pore pressure of the HRZ shale, which appears higher than previously expected.

In late afternoon trding, 88 Energy shares were 11%, or 0.35p higher at 3.5p.

READ: 88 Energy on target to flow test latest Alaska well late June/early July

Artificial stimulation is scheduled to take place on 17 June with the flow testing by the end of the month or early July.

88 Energy said the fracking would test whether complex artificial fracture systems can be created within the HRZ via the proposed stimulation.

These complex fracture systems are evident in the best performing shale plays as they result in maximised stimulation rock volume, which directly impacts potential flow rates.

Similarly, whilst substantial work has been done on thermal maturity, the exact gas oil ratio is difficult to predict prior to a flow test.

The company interprets that the vast majority of the HRZ sweetspot has been captured irrespective of any uncertainty, due to the large acreage position.

Icewine-2 is expected to provide further insight into the scale of the HRZ shale discovery.

Significantly, it will be fracked and flow tested to determine the commercial potential of the shale, which is estimated to hold billions of barrels of oil.

Last week, 88 Energy said it was on track to test the well late next month or early July after successfully cementing in place the production liner.

The group's managing director Dave Wall said then:  "The Alaska team have successfully completed the Icewine-2 well on schedule, after an effective adjustment to the completion plan, post the initial unsuccessful attempt to set the production liner."

 -- Adds share price, further background --

 

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