88 Energy stock: Here we go!

The shares of 88 Energy started trading in Frankfurt on Friday with a full jump of twelve percent. The shares of the Australian exploration company are listed at 0.0101 euros. But that doesn’t necessarily mean anything for the highly speculative share: after the abandonment of the Merlin 2 appraisal well in Alaska last week, a discount of 65 percent is still on the books at 88 Energy. However, there was actually some good news now, because things are moving forward elsewhere.

88 Energy continues with Icewine project in Alaska

According to proactiveinvestors.com, 88 Energy ( Daily Current Rating ) has now announced that it expects an independent resource estimate for the Icewine project on Alaska’s North Slope before the end of the second quarter. Analysis and review of the project is to continue following recent results.

“Mapping work focused on the Seabee Lower Basin Floor Fan (BFF) and Slope Fan System (SFS) reservoir zones is now nearing completion,” it says. In the case of Shelf Margin Delta (SMD), these could even be extended to neighbouring areas. This is not yet a success story for 88 Energy, but at least the Icewine project remains in the running for oil.

88 Energy share still deep in monthly minus
Unlike Merlin 2, which was once developed after oil deposits and elevated gas readings in the target zones were detected during logging while drilling. Then came the setback: as its reservoir quality was insufficient, it did not justify a production test, as 88 Energy had to announce at the end of March. The well would therefore be closed. As a result, the share price plummeted: From 0.025 euros, it fell by almost 70 per cent to 0.008 euros within one trading day. Despite the slight recovery in the meantime, the 88 Energy share has still lost 65 percent of its value over the month.