88 Energy’s 2D seismic interpretation exceeds expectations
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
88 Energy (ASX:88E) has provided a positive update in relation to the conventional prospectivity of Project Icewine located in Alaska. In commenting on recent exploration data, Managing Director Dave Wall said, “The results from the 2D seismic interpretation continued to exceed our expectations for the conventional potential across Project Icewine”.
Additional resource potential has been identified for conventional leads across the project, and based on internal estimates the gross mean prospective resource (unrisked) is estimated to be 710 million barrels.
88 Energy is the operator of Project Icewine through its wholly-owned subsidiary Accumulate Energy Alaska Inc with a working interest of 77.5%.
Based on management’s estimates regarding the unrisked prospective resource this equates to 550 million barrels attributable to 88 Energy. The company estimates that the potential total net mean prospective resource attributable to 88 Energy is 1.14 billion barrels.
The fact that management believes there is a much more significant story that will play out in 2017, as the group prepares for the drilling of Icewine#2 which will test the production potential of the unconventional HRZ liquids rich resource play.
On this note, Wall said, ‘Whilst the conventional prospective resource is very large it is eclipsed by the potential of the HRZ, especially given the recently expanded acreage position, and it is also worth bearing in mind that the HRZ has been de-risked via analysis of the results from Icewine#1, and remains the company’s primary objective”.
It appears that 2017 will be a significant year for the company with the potential for a material share price rerating. When Patersons analyst, Jason Chesters ran the ruler across the stock in the latter part of 2016 he said, “In the medium term the successful completion of the Icewine#2 well and the intended flow tests, and the potential sale or farm in of a partner would be key catalysts”.
He has a speculative buy recommendation on the stock, and pointed to potential upside from the outcome of drilling on adjacent acreage to the North (Great Bear) where Otto Energy and its joint venture partners intend to drill between two and four wells on their acreage during the 2016-2017 drill season.
It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
This material has been prepared by Marko Babusku (MB, “I” or “me”). Marko Babusku is an authorised representative (AR 001315790) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and an employee of S3 Consortium Pty Ltd (trading as Stocksdigital).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, MB, Stocksdigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, MB, Stocksdigital, their related body corporates or any other person do not accept any liability for any statement in this material
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
