88 Energy (LON:88E) will delay testing at its latest well on Alaska’s North Slope, the AIM-listed company has said. The energy group had previously said that testing was to restart this week.
Investors have nevertheless reacted positively to the announcement, with 88e’s share price having added 3.70 percent to 2.02p on London’s junior market as of 14:37 BST. The group’s shares have lost nearly 27 percent of their value over the past year, and are down by a little over 27 percent so far this year.
88 Energy announced in a statement today that flow testing on its on its Icewine-2 well, located onshore North Slope of Alaska, was set to re-commence the week beginning August 28. The well was shut in last month for a six-week period to allow for imbibition and pressure build up to occur within the HRZ shale. Today’s update comes after the Australia-based energy group said earlier this month that testing was to restart this week. At the time, the company also said 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.
88 Energy explained in today’s statement that the one-week delay to the scheduled programme had been caused by “minor fine-tuning of the testing procedure”.
“Additional technical analyses are ongoing and will be communicated once complete,” the company pointed out.
Proactive Investors noted in its coverage of the news that the Icewine-2 appraisal well was designed to confirm the geological findings of the first hole, which had pointed to the presence of hydrocarbon bearing HRZ shale. Success with the Icewine-1 well provided the basis of some big and potentially valuable resources, with flow testing results expected to prove pivotal for 88 Energy’s plans to develop the HRZ shale.