88 Energy Share Discussion Threads

[lithological heterogeneities] 10/7/2017 18:04

with atleast 6 weeks of no news I see this drifting lower.

[11_percent] 10/7/2017 17:59

tidy, it could be a scamm move....

[tidy 2] 10/7/2017 17:53

Without a horizontal well they gambled against this is looking to be very close a duster. It's now doubtful any flows with suggest any chance of commerciality with projected calculations. The risk is now far greater than reward at this price. Really sorry guys.

[jenny tulwought] 10/7/2017 17:44

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88 Energy shares drop, but the sky has yet to fall for the Alaska explorer

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14:53 10 Jul 2017
Investors will have six weeks of uncertainty before they'll know whether Monday's share price drop was an overreaction.
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88 Energy is shutting the Icewine-2 well for six weeks

Looking at the near 40% drop in 88 Energy Ltd (LON:88E) share price on Monday, July 10, one might be forgiven for thinking that the sky had fallen for the Alaska-focused shale explorer.
The share price fall to 1.7p, from 2.75p, presents a palpable panic among investors as the company confirmed it would delay the programme in the Icewine-2 well for a period of six weeks - to hopefully allow pressure to build and to advance to the well to its planned production testing programme.
It is a course of action that the AIM-quoted company had previously hinted may be necessary, but that warning was seemingly not enough to stop the shock to the 88 Energy share price.
Investors will now have to wait and see what comes of the Icewine-2 well.

Brendan Long, analyst at WH Ireland, in a note, said the “tough question” the company needs to answer is whether the problem at Icewine-2 is the result of well-specific issues - related to the well’s completion and the maiden fracking in the HRZ shale - or whether it raises a wider concern for the shale resource as a whole.

The pre-frack assumption was wrong

Prior to the fracking programme in the Icewine-2 well, 88 Energy had thought it was addressing two separate shale reservoir zones, however, a slow rate of frack fluid recovery led the company to believe that the two zones were in fact connected.
Since then, the company has continued the process of recovering fracking fluid. By Monday, only 16% of the fracking fluid had been recovered, and no hydrocarbons were measured.
According to Long, the initial findings bode badly for 88 Energy. In a note the analyst said: “the low return of frack fluid is inconsistent with a highly productive well and the lack of oil or gas is surprising.”

Is it just part of a steep learning curve?
It remains to be seen whether the delay is a red-flag against the project, or whether in the passage of time it will be chalked up as part of the learning process in what remains an unchartered shale play.
One thing speculative investors can bank on, however, is the fact that they won’t be making a quick buck on this project.
The project, if it eventually proves successful, remains in its infancy, and plainly the company has much to learn as it tries to unlock an estimated 1bn-plus barrel prize.
In recent weeks the AIM-stock has benefitted from ‘trigger chasing’ speculative buys.
The price rose to as high as 4p, on June 21, from around 2.5p previously at the start of this year.
That the price has took such a big hit on Monday, without a decisive result, shows that the stock is now swimming against a somewhat fickle and transient tide.
A new potential timeline will, meanwhile, see the well re-opened presumably at the end of August and therefore the results are likely to known shortly thereafter – in sync with the typical post-summer step-up of activity across the market.
It means it is likely to be a significant and pivotal autumn for 88 Energy as well as the investors that keep faith and stick with company over the coming weeks.

Icewine-2: the story so far.

88 Energy announced the start of a new well programme in April.
The Icewine-2 appraisal well was designed to confirm the geological findings of the first well, which had confirmed the presence of hydrocarbon bearing HRZ shale.
Success with the Icewine-1 well provided the basis of some big and potentially valuable resources.
That first well had laid out a whole new US shale play and, buoyed by the success, 88 Energy moved quickly to significantly expand its footprint in the surrounding area.
With Icewine-2, the idea was to take the important next steps of fracking and flow testing the HRZ shale. The intention is to prove that the potentially vast oil resource could be accessed and extracted, at commercially viable rates. It is a litmus test for the HRZ’s future.

Icewine started well

By mid-May, everything appeared to be going to plan.
The company reported to the market that it had completed the drilling phase. The vertical well was drilled on schedule and without incident, the company said.
In early June, the company informed investors that it had gained enough insights in to the stress profile and pore pressure of the HRZ shale that it could proceed to the fracking phase. At that time, it added that the fracking would test whether complex artificial fracture systems can be created within the HRZ via the proposed stimulation.
A June 19 update informed investors that the first of two planned stages of fracking in the Icewine-2 appraisal well had been completed successfully – with 100% of the intended fluid volume injected into the zone.
The next day, it was confirmed that the second stage was complete after more than 90% of the intended frack fluid injected into the other zone.

Something wasn’t right

By the time that 8% of all the fracking fluid had been recovered, the company came to the conclusion that the two zones were ‘in communication’. It was, therefore, decided that the plug between the two zones ought to be drilled out.
After that, flow-back operations continued.
On June 26, at which point some 16% of fluid had been recovered, 88 Energy managing director Dave Wall said: “Given that we are breaking new ground in relation to the HRZ formation, we need to establish the conditions under which the hydrocarbon cut will return and then increase.
“The stimulation was executed precisely as per plan with over one million lbs of proppant placed into the formation. A little patience is now required as we give the rocks time to show us what they can deliver.”

Time out now planned
At the time of the Monday July 10 announcement, some 16% of the fracking fluid had been recovered.
“After analysing the performance of the well to date, and comparing to results from other plays, a decision has been made to shut the well in for six weeks to allow for pressure build up and imbibition to occur,” the company told investors.
“Imbibition (or soaking) has proven to be effective in other plays by allowing frack fluid to be absorbed, displacing in-situ water that may be blocking hydrocarbon molecules from being able to flow through the reservoir.”
Following the shut-in period, the well may then be swabbed (a process of mechanically lifting oil), it added.
“Further analyses are required to determine the impact, if any, of the performance of the Icewine-2 well on the probability of success for the HRZ play at the Franklin Bluffs location and over the wider acreage position,” the company said.
The Icewine-2 well will be in ‘time out’ for a period of six weeks.

A conventional plan ‘B’

Would all be lost for 88 Energy if the HRZ shale doesn’t produce?
No, not quite. It is true that the Icewine wells are responsible for a very significant proportion of the stock’s £130mln market valuation, and, shale has been the group’s stated priority.
But, the explorer has also identified a meaningful conventional portfolio of prospects.
In late 2016, it told investors that a range of preliminary leads have now been identified as part of its conventional oil exploration programme. It said that the forward work programme will mature prospects and leads, and high-grade the best ones into candidates for future drilling.
Later, in January, the company completed its assessment of Project Icewine’s conventional oil potential. It saw almost 1.5bn barrels of resources across its inventory on Alaska’s North Slope. The resource assessment was based on 2D seismic data.
A total of fifteen exploration leads were identified through the process.
It means there’ll be some alternative options left on the drawing board, should the eventual Icewine-2 results lead to the kind of worst-case scenario to trigger a strategy re-think.

[francis55] 10/7/2017 17:24

Off out to enjoy some Spanish flair tonight courtesy of sp's like this one.

[jenny tulwought] 10/7/2017 17:09

rossowheels
10 Jul '17 - 14:54 - 13022 of 13035 1 0

Finish blue...

====


Another genius.

[billyboychrisd] 10/7/2017 16:49

Continued development of the project. I'm quite gobsmacked at the drop in share price but by no means is this RNS failure. 88e is attempting a new style of play on an unconventional target. It will take time and different strategies to get it right but by no means has it failed at this point. Whatever people say about DW and PB, they aren't liars, they don't mince their words, and they are HUGELY experienced in this industry and I imagine they are still confident of getting this to work. Enjoy the ride and I'll see you all in six weeks ;-)

[jammytass] 10/7/2017 16:36

by 21st aug game over

so called legend pb years of work for a pool of water

[francis55] 10/7/2017 16:16

21st Aug even..

[francis55] 10/7/2017 16:15

Thank you squire. So not much between buy and sell and panic selling one suspects is responsibke for the losses today..Total bargain share price and a very high chance of making substantial profits .. I for one will run with this for another 6 weeks..Roll on in Mon 21st July...

[squire007] 10/7/2017 16:08

253m buy 284m sell

[jammytass] 10/7/2017 16:06

no oil just water

[francis55] 10/7/2017 16:03

Can anyone see buys to sells today?

[andy] 10/7/2017 16:02

Herschel,


Andy,


"No offence, but stating on a public BB that 88e has "hit water" is an out and out LIE."

-------

Just filter him and it won't worry you any more. Why read lies?

Eventually there will be oil or not, and then the true value of the company will be known, and no matter what is written on a BB it's all noise, oil will either flow or not, and the share price will then reflect that.

[billyboychrisd] 10/7/2017 15:56

Haha all you guys crack me up. And I was having a bad day after seeing my 88e drop in value. :-)

[ride daice] 10/7/2017 15:54

I might when they get a production licence.

[tidy 2] 10/7/2017 15:46

Bail here get some ukog guys. 124+ billions of barrels naturally fractured in stacked continuous payzone. Light sweet 1000 sq miles.

[datait] 10/7/2017 15:45

get into ukog and you will make your money back quicker

[pugg1ey] 10/7/2017 15:18

that's the spirit, glass half full.
Question is, what is it half full with?

[apfindley] 10/7/2017 15:03

Ouch. This is poor. It puts into question the WHOLE field now. Maybe the first drilling of ice wine 1 was a fluke. Ice wine 2 has now proved they can't rely on the whole field being like ice wine 1. Time to question the viability of the whole project.

[rossowheels] 10/7/2017 14:54

Finish blue...

[datait] 10/7/2017 14:41

will fall further into the close

[daithedeath] 10/7/2017 14:39

This might be of interest

hxxp://www.civil.engineering.ualberta.ca/en/NewsEvents/Civil%20and%20Environmental%20Engineering%20News/2014/November/Professorssoakingresearchleadstomoreefficientwells.aspx

[jammytass] 10/7/2017 14:33

Get real Dave you can't sell any. You can buy millions