88 Energy ( LSE:88E , ASX:88E )
Oil explorer 88 Energy (AIM | ASX: 88E) is out of winter hibernation and has a forward work programme expected to unlock some serious value.
Firstly, 88E will be finalising flow testing across April and May this year on its Icewine #2 well.
Project Icewine has prospective resource of 1.4 to 3.6 billion barrels of oil equivalent, which was evaluated over only 270,000 of the now 475,000 contiguous acres.
The sheer scale of Project Icewine is likely to place it on the radar of oil majors looking to bolster their portfolios.
With the oil price on the up, over the coming months it’s expected 88E will look to farmout to a partner that sees the upside in developing and commercialising Project Icewine into the next multi-billion barrel onshore oil discovery.
You only have to look at 88E’s neighbours and recent discoveries on the North Slope to see the potential here.
Armstrong Energy recently discovered 1.4 billion barrels in its Brookian play – the largest onshore oil discovery in North America in 40 years.
ConocoPhillips discovered over 300 million barrels recoverable in 2017 at Willow in the same Brookian play that 88E is chasing on its acreage.
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A major transaction most definitely isn’t out of the question here, when you consider Oil Search (ASX:OSH) completed a US$850 million transaction (US$400 million in first tranche) with Armstrong to get a stake in the region, right next door to 88E.
With news to flow in the coming months, successful results across 88E’s Project Icewine could see it attract a deep pocketed farm-in partner, which could be game-changing for the company.