88 Energy Limited (formerly Tangiers Petroleum Limited) is an ASX listed exploration exploration company that has recently announced the acquisition of a new, potentially world class oil asset located in Alaska. It also has a 25% stake in the Tarfaya Offshore Block is located on the Moroccan Atlantic margin and was acquired by the company in 2009.

Alaska-project-icewine

morocco

http://88energy.com/

Crumbs, really?! :oD

Another fine day. :-))

Hmm, sold most of mine a tad early methinks!

Up 100% this morning.

All good news so far but there is a long way to go yet.

Up 118%

Proactive investor - Everything appears to being going to plan for 88 Energy (LON:88E) in Alaska, where it is uncovering what it hopes will be a significant new shale resource play.

88 Energy managing director Dave Wall, in a statement, used the word ‘astounding’ as he described the correlation of pre-drill expectations for the Project Icewine well and the actual results to date.

StockMarketWire.com
Core and petrophysical data from the Icewine#1 well continue to deliver at or above pre-drill expectations, 88 Energy says.

Highlights - Integrated Core and Petrophysical Analyses Indicate Tier 1 Liquids-Rich Hydrocarbon Concentration with World Class Resource Prize Potential - Consistent with Pre-Drill Forecast

- Gross Pay of 196' with Net Pay of 180.5' - Exceptional Net to Gross Ratio of 92% as Prognosed

- Reservoir Quality In Line With or Above Expectation:

* Outstanding Effective Porosity of 11% Shale Plays Typically in 4 - 7% Porosity Range

* Total Organic Carbon (TOC) Average of 3.55% in Cored HRZ Interval

* Hydrocarbon Saturation Over Entire HRZ Interval Estimated at >70%

- Rock Mechanics Further De-Risked by Additional Analysis:

* Average Clay Volume 40% - Analogous to Marcellus and Haynesville Shales

* High Percentage of Brittle, Non Swelling Clays

- Planning for Horizontal Well, Icewine#2H Commenced 88 Energy says notably the Icewine #1 exploratory well, designed to evaluate the resource potential of the HRZ shale, was completed on budget for US$16.61m (versus $16.58m AFE), having achieved all of its primary objectives.

Managing director Dave Wall said: "Results from analysis of core and petrophysical data from the Icewine#1 well continue to deliver at or above pre-drill expectations for the HRZ shale play at Project Icewine.

"As a consequence of these continued good results, we have tailored our seismic acquisition to focus on mitigating drilling risk for the next well, Icewine#2H, for which planning has commenced. 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. 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 larger conventional features that would be economic at today's prices.

"Costs for the Icewine#1 well have now been finalised, with our Operations Team in Alaska, headed up by Erik Opstad, delivering an outstanding outcome. The well not only achieved all of its primary objectives, including exceptional core recovery in the primary HRZ target, but it was also delivered on Budget."

Huge volume and tempting to have a dabble! High risk......pump & dump trading.

My best performing share of the year so far, could be a lot more to come.

If you do dabble, take your profits quickly!! :o)

But even they admit it's not worth getting out of the ground at present. Be interesting to know what their breakeven price would be.

I think it is around $55 from memory Harry, but that can change of course!

It will be months before all the test results are through so the oil price could have reached the target by then. Or not! :o)

Apologies to wayne300808....just seemed sensible to continue with the existing thread. Thanks for highlighting it.

From some time in October:- "88E estimates a break-even oil price of $52/bbl for the project, which as noted above is based on preliminary data and suggests that the project would not be economic at current oil prices. However, with a longer term view and considering the scale of a potential new liquids play it is not unreasonable to assume that major oil and gas companies could look to farm-in or acquire the project, subject to success of early appraisal."

Am I right in saying that they are using a $50m loan facility? If so, that needs to be repaid at some time and also may not be enough for future drilling. However, some of the little exploration Co's which have drilled successfully, get taken over by the big boys, so that could be a plus.

I'm not sure off the top of my head what the company is borrowing Harry but exploration incentives are provided by the State of Alaska with up to 85% of exploration expenditure in 2015 cash refundable, dropping to 75% until mid 2016 and thereafter 35%. The drilling they undertook was within budget and I don't think funding will be a problem but yes, it is more probable than possible that they will be taken out by a big company, hopefully at hundreds of £ per share haha! :o)

Good luck kim.

Thanks DC! Don't need luck though thankfully, my holding is now all free so I will just let it sit there. Might be tempted to do a few extra trades at some point though! :o)