Shares in 88 Energy (LON:88E) have lost more than a fifth of their value this morning, with initial test results at its latest well on Alaska’s North Slope disappointing investors. The news came as the AIM-listed company restarted flow testing at its Icewine-2 well following a seven-week shut-in.
As of 10:21 BST, 88e’s share price had given up 21.23 percent to stand at 1.93p. The group’s shares have lost more than 41 percent of their value over the past year, and are down by just under 30 percent in the year-to-date.
88 Energy announced in a statement this morning that flow testing on its Icewine-2 project had restarted on August 31, following a seven-week shut-in. The company provided some initial results, noting that hydrocarbon indications had been minor and were associated only with the formation of gas hydrates in the choke manifold.
“The current flowback procedure is early stage and the significance of an implied pressure contribution from the reservoir and formation of gas hydrates cannot yet be determined,” the Australia-based company noted in the statement.
Today’s update comes after 88 Energy recently announced that it will delay testing at the well by one week on account of “minor fine-tuning of the testing procedure”. The Icewine-2 well, located onshore North Slope of Alaska, was shut in in July to allow for imbibition and pressure build up to occur within the HRZ shale.
Today’s update marks a blow for the AIM-listed company with the flow testing results seen as pivotal for the group’s plans to develop the HRZ shale. 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.