2nd Mar 2016 15:27
LONDON (Alliance News) - 88 Energy Ltd Wednesday reported a significantly narrower pretax loss in 2015 following the large amount of write-offs booked in 2014.
88 Energy, which has recently discovered a potential "world class resource" in Alaska, said its pretax loss in 2015 amounted to USD6.3 million compared to the hefty USD27.7 million loss reported the year before.
That narrower loss was reported because a USD20.3 million write-off against exploration booked in 2014 was not repeated in the most recent year. Other exploration expenses were also lower in 2015 than in 2014, whilst employee benefit payments also fell by more than half.
"The turnaround in the company's fortunes has been nothing short of astounding. Little over one year ago 88 Energy was faced with the difficult task of re-inventing itself following an unsuccessful program offshore Morocco," said Chairman Michael Evans.
"Up stepped a project originator in the form of Houston based geoscientist Paul Basinski, with an enviable track record in unconventional oil exploration. His proposition was that Alaska could host vast undiscovered potential in an unconventional play known as the HRZ shale play. 88 Energy was quick to capitalise on this opportunity which ironically became available due to the poor investment climate that prevailed," he added.
That move into Alaska led to project Icewine, where the company is currently analysing results from testwork carried out on the HRZ shale formation within the well. 88 Energy recently said the ongoing analysis has indicated there is a "tier 1 liquids-rich hydrocarbon concentration with world class resource prize potential".
The Icewine well cost a total of USD16.6 million, which was on budget. In 2016, 88 Energy plans to launched "Project Icewine Seismic", which will start in March. The contractor to conduct the seismic work has been selected, and the company is currently securing the funding required.
88 Energy shares were trading down 2.1% to 2.30 pence per share on Wednesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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