88 Energy’s (ASX:88E, LON:88E) Project Icewine, in Alaska, is precisely the type of project a small explorer should be involved in order to get on the front foot and make a difference, says chairman Michael Evans.
Evans, in a statement accompanying the newly re-launched company’s financial figures, described 2014 as a landmark year but said it was also one of turbulence.
During the second half the year the company – previously known as Tangiers Petroleum – exited exploration projects in Morocco and reinvented the group to focus on Alaska. This involved a number of funding raisings and a corporate rebranding.
It has seen the company acquire Project Icewine which is located in an established oil and gas province, but is focussed on two highly prospective plays which could have considerable upside.
One is a highly regarded conventional play, the other is an unconventional play with an estimate 492mln barrel prospective resource.
“Frontier exploration by its very nature is characterised by high risk and high rewards,” Evans said.
“There are no guarantees of success; however, your board is committed to managing 88 Energy with competence and integrity in a way that maximises the opportunity for shareholders to participate in the economic benefits of prudent exploration and development.”
The company reported a $27.7mln loss for the twelve months to December 31, including a $20.2mln write-off to exploration expenditure.
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