Company Project Update

88E closed out the week by providing an update on the exploration work its neighbour (London listed Pantheon Resources - currently capped at £1 billion) has been doing.

In Q2021, Pantheon drilled the “Talitha-A” well, ~4.5km to the north of 88E’s Project Icewine permit boundary.

Pantheon recently re-entered that same well and completed a production testing program - confirming light oil flows over a 3 day testing period.

For us the key takeaway from the work Pantheon did at Talitha-1 was Pantheon's commentary around the formations from which the light oil was recovered all extending down into 88E’s Project Icewine.

88E also confirmed that it would use the data Pantheon had gathered to put together a prospective resource for Project Icewine, focused on the eastern parts of the permits, before the end of the June quarter.

In our latest note we mentioned that once the drilling at Merlin-2 was completed that we would expect 88E to go back into its Project Icewine some time this year. With Pantheon’s share price going from 35p to now £1.40, clearly there is market interest for exploration in and around 88E’s Project Icewine permits.

We haven't included Project Icewine in our 2022 Investment Memo as yet because all of our focus for the time being is on the Merlin-2 appraisal well which 88E expects to be spudding next week. After Merlin-2 is drilled we will look to update our investment memo based on the results.

With the oil price trading at near 10 year highs of US$110/barrel, 88E could not have picked a better time to take a swing for the fences on a potential company making oil and gas discovery. Click here to read our latest note which sets the scene for the Merlin-2 well.