88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF)’s quarterly activities report summed up three months in which the company’s recently acquired Texas assets put cash in the bank.
The 73%-owned producing assets in Texas, referred to by the company as Project Longhorn, yielded some 400 barrels of oil per day (gross) and in March delivered some A$600,000 as its first net cash flow.
Elsewhere during the period the company’s Merlin-2 well, part of Project Peregrine in Alaska, was drilled down to its target depth after seeing elevated mud gas readings and oil shows, but, subsequent analysis with wireline logging indicated reservoir quality was insufficient to warrant production testing. The Merlin well was then plugged and abandoned.
At Project Icewine, also in Alaska, the company and its consultants continued desktop work and analysis.
Mapping efforts for Icewine is said to have extended the Shelf Margin Delta SMD play fairway from neighbouring Pantheon Resources acreage onto Project Icewine's acreage. Presently further mapping of the Seabee Lower Basin Floor Fan (BFF) and Slope Fan System (SFS) nears completion.
88 Energy said it is in talks with potential farm-in parties into Project Icewine, meanwhile, an independent resource update is slated for the second quarter of 2022.
The company noted that it ended March with A$32.6mln of cash and no debt, after raising A$32.1mln in a share placing in February. Before that, In January, the company’s shares began trading in the US via a listing on the OTCQB market (under the ticker code EEENF).