88 Energy (LON:88E) shares were up as much as 20% on Thursday after the company released an update on their current drilling activity in the North Alaskan slopes
The company announced the flow testing would restart in the Icewine2 prospect 21st August. The recently drilled well was shut-in on 10th July to facilitate pressure build up within the shale formation.
The company also released details of additional acreage in the area. In a recent round of bidding 88 Energy were awarded additional gross acreage of 109,817 of which 76,966 were paid for. The result is a net increase of 48,864 for 88 Energy.
88 Energy said the awarded acreage was accepted as the chances of finding further unconventional and conventional hydrocarbons was at its greatest. A large proportion of the Icewine discoveries have so far been unconventional prospects.
Icewine Funded
Today’s announcement comes after recent interim results that recorded a loss of $7.84 million for the six months up to 30 June 2017.
Available cash was $31.55 million which is $4.25 million more than the previous year following a successful capital raising in March 2017. The company also highlighted a facility with Bank of America would need to be replaced before it lapses next year.
The firm said cash on hand would see them through the Icewine 2 drilling program and should be enough to cover any unexpected costs.
88 Energy shares are down over 20% in the last three months as the drilling program continues without any further solid results on potential flows and commercial viability of the Icewine prospect.
Internal estimates suggest there are as much as 1.47 million barrels of prospective resources in the Icewine prospect of which 1.14 are net to 88 Energy.
The Icewine prospect is in close proximity to the Prudhoe Bay oil field in North Alaska, originally thought to hold as much as 25 billion barrels of oil.