88 Energy (88E.L, ASX:88E) has started to drill the second Icewine well on April 24th, and has now reached a depth of approximately 3,000 feet on April 27th already. The surface casing has been cemented, and the Arctic Fox drill rig has recommenced drilling to push through the intermediate hole section, which ranges from a depth of 900 meters to approximately 3,200 meters.
Everything seems to be going as planned and as we previously said, the results of the Icewine #2 well will be a major milestone for the company. We know the oil is there, but it’s now up to 88 Energy to find out if the flow rates are economical. According to CEO Dave Wall, production testing is now scheduled for late June or early July, and a lot of shareholders and potential shareholders will be looking forward to see if 88 Energy can tap into the multi-billion barrel resource at Icewine.
88 Energy is definitely gaining momentum on the financial markets as well as volumes are increasing on both the London Stock Exchange and the Australian Stock Exchange, and even though the oil price has been absolutely disappointing, 88 Energy’s share price actually increased why so many other companies got slaughtered. It’s an encouraging sign a lot of people are watching the developments on the Alaskan North Slope.
The company’s share price has been attacking the 3 pence level on its London listing, and Masterinvestor.co.uk thinks 5 pence is within reach once the current hurdle has been cleared.