Project Icewine an extension of its neighbours project?

This morning, our oil and gas exploration Investment 88 Energy (ASX: 88E) put out an update on its Icewine Project in Alaska, USA.

The update was a summary of an independent third party assessment to see if the reservoir units from 88E’s London listed neighbour Pantheon Resources (AIM:PANR) (Capped at ~AU$1.6 billion ) project which recently had three of its wells demonstrate commercial light oil flow rates right along the border of the tenement boundaries shares with 88E.

Pantheon recently completed flow testing across the Alkaid-1, Talitha-A and Theta West-1 wells and confirmed reservoir deliverability of light, sweet oil.

The independent third party assessment completed by consultants (Jordan & Pay) evaluated all of the publicly available drilling data released by Pantheon Resources across those three wells and all of the data that 88E from previous exploration programs.

The conclusion the consultants reached was that all of the Pantheon reservoir units extend onto the Project Icewine acreage owned by 88E.

With these learnings 88E confirmed in announcement earlier this week that it is “optimistic that a production test in the Icewine East acreage could potentially yield a similar or better result than seen during the testing of Alkaid-1”.

We have been invested in 88E through multiple high impact drilling programs over several years now and the news today looks like there is a compelling case building for another high impact exploration program across 88E’s Icewine project in the near future.

With the Merlin-2 appraisal well drilled and the well plugged and abandoned we have seen the 88E share price come down to trade at ~1.1c per share.

We are now looking to see 88E detail its forward plans after which we will look to publish a new Investment Memo detailing what we want to see 88E achieve for the rest of the year and why we continue to hold 88E in our portfolio.