Icewine has “world class resource potential”: 88 Energy
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 labelled Icewine as having “world class resource potential” after further analysis on cores found 180.5 feet of net pay within the target HRZ shale.
The ASX and AIM-listed company has been conducting ongoing technical analysis of cores taken at its Icewine-1 well in Alaska, with the latest round of results confirming a liquids-rich play.
It found that there was 196 feet of gross pay, of which 180.5ft was net pay.
Meanwhile the result on porosity has continued to come in at above the norm, with the core holding porosity of 11%, with shale plays typically hosting porosity of about 4% to 7%.
Interestingly, nearby drilling undertaken by Great Bear Petroleum before 88E drilled Icewine-1 had revealed porosity of up to 8% within the HRZ Shale.
88E also told investors that the HRZ total organic carbon average came in at 3.55%, while average clay volume in the core came in at 40%.
A higher clay volume can be problematic, as it can lead to problems with hydraulic fracturing – but at 40% it is somewhat of a lookalike to the successful Marcellus and Haynesville shales in the US.
Meanwhile, 88E has revealed that it will take 2D seismic at Icewine instead of 3D this month, saying that it didn’t make fiscal sense to focus on the conventional potential of the play when the HRZ offered up so much potential on its own.
“Given the current oil price, it did not make sense to attempt to delineate the more subtle, and typically smaller, conventional features at this point in time,” managing director Dave Wall said.
“The revised 2D seismic program will give a broader regional picture across a larger aerial extent on our expanded acreage position and should still identify those large conventional features that would be economic at today’s prices.”
Analysis on the core taken at Icewine-1 is still ongoing, but the company has already flagged folding the technical results into an updated independent resources model covering its Icewine acreage.
Back in November last year it took the decision to effectively triple its acreage position at Icewine by bidding at government auction, wanting to head off any potential competitors and build scale ahead of a mooted farm-out in the second half of this year.
General Information Only
This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director 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, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, 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.
