2nd Jul 2018 11:57
LONDON (Alliance News) - Shares fell in 88 Energy Ltd on Monday as the company said it has suspended the Icewine#2 well, onshore Alaska.
Shares in 88 Energy dropped 22% to 0.991 pence on Monday.
The reasons for discontinuing flow testing at Icewine#2 was due to the company's belief that a more significant work program would be needed to de-risk the HRZ Shale Play further, as well as the belief that enough data has been gathered to support the potential economic viability, despite the well not achieving a flow rate representing the reservoir's capability.
The demobilisation of equipment has already been completed, and 88 Energy's joint venture is currently in discussions with a service provider to provide analysis and quality control of the existing dataset and formulate a forward work program to present to potential farm in partners.
"Ideally the Icewine#2 well would have delivered a stronger hydrocarbon flow rate and it is disappointing that this was not achieved; however, the Joint Venture has many positive takeaways from the well and remains confident about the potential of the HRZ play. Future evaluation of the large potential already identified is planned to be accomplished via farm-out and this process has already commenced," said Managing Director Dave Wall.
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