Shares in 88 Energy (LON:88E) have jumped on London’s junior market in today’s trading, with investors reacting positively to news that the company is planning to restart testing at its latest well on Alaska’s North Slope. The news comes after the Australia-based energy group recently updated investors on its performance, revealing that its losses had narrowed in the first half of the year.
As of 13:17 BST, 88e’s share price had added 12.68 percent to 2.00p. The group’s shares have lost more than 18 percent of their value over the past year, and are down by some 27 percent in the year-to-date.
AIM-listed 88 Energy said in a statement today that flow testing on its Icewine-2 was set to recommence next week. The well, which is part of the group’s Project Icewine, located onshore North Slope of Alaska, was shut in last month for a six-week period to allow for imbibition and pressure build up to occur within the HRZ shale.
The company noted in the same announcement that the gross acreage position of the venture was increased by 76,996 acres to 348,116 acres, or 259,114 net to the firm.
Today’s update comes after 88e posted its interim report earlier this month, revealing that it had recorded a loss of $7.84 million (£6.09 million) for the six-month period ended June 30, as compared with a $8.06-million (£6.26 million) loss booked for the prior-year period.
The group’s cash on hand meanwhile climbed to $31.55 million, up from $27.30 million, while net assets soared to $58.7 million from $48.01 million as at December 31, largely due to the capital raising in March this year and the subsequent investment in expenditure on the Icewine Project. 88 Energy, however, did neither declare nor pay dividends for the period.