88 Energy Shares Surge After Reducing Icewine Project Risk
10 February 2016 - 8:21PM
Dow Jones News
By Alex MacDonald
LONDON--Shares in 88 Energy Ltd.(88E.AU) jumped Wednesday after
the Alaska-focused oil explorer said it has further reduced the
risk involved in developing the Icewine shale project in Alaska,
U.S. and is in the final stages of talks with Bank of America Corp.
(BAC) on project funding.
"Two of the three main 'Achilles Heels,' being thermal maturity
and matrix permeability, have now been substantially de-risked,
coming in at, or above, pre-drill expectations," said Dave Wall,
the managing director of 88 Energy.
Thermal maturity meaures the degree to which a rock needs to be
heated to extract hydrocarbons while the matrix permeability
measures the ease with which hydrocarbons can then be extracted
from a rock.
88 Energy said that the matrix permeability indicates the
possiblity for 'super highways' at the core HRZ shale interval of
the prospect. It added that results of such tests were
significantly higher than the cut-off limits required to continue
to successfully develop the project.
Shares in the U.K.-listed oil firm were up 33% to 0.45 pence a
share in morning trading, resulting in a market capitalization of
GBP14 million or $20 million.
"Additional work remains... however, at this stage of the
evaluation we could not have hoped to be in a better position,"
said Mr. Wall.
The company is now in the final stages of a tender process for
the seismic survey and said that it is in the process of securing
funding in line with the project's development schedule.
The Icewine project is located on Alaska's North Slope, which is
host to the 15 billion-barrel Prudhoe Bay oilfield complex, the
largest conventional oil pool in North America, according to the
company.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
February 10, 2016 04:06 ET (09:06 GMT)
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