Australian Energy company 88 Energy Limited [ASX:88E] has increased by 3.05% in share value today, thanks to its continued support of a project.
Project Icewine — an Alaskan-based 3D seismic survey extending to 450 kilometres —had been finalised back in April, and remains on schedule for the rest of the year.
The project’s contents and accessibility have now been properly analysed by head office, and further contracts have been set.
And with the project being within its budget, 88 Energy are still on board.
This means they can freely utilise Icewine’s benefits whilst increasing its profit margin.
All expenses managed
In late March this year, 88 Energy went through a process to manage its debt levels.
They had agreed with the Bank of America to postpone the maturity date from June 2018 all the way to December 2022.
Further details are confidential, but this will surely help establish a stronger ground for 88 Energy to manage its finances efficiently.
88 Energy holds much interest and operation over Alaskan land.
In 2015–2016, the company sought after many exploration opportunities in the region that came on offer.
And in March 88 Energy acquired sites providing large quantities of oil.
To this day, they are still reaping the benefits this initiative brought them.
On its financial report, 88 Energy stated:
‘The Company completed its maiden well at the project, Icewine#1, in late 2015 to evaluate an unconventional source rock reservoir play which yielded excellent results from analysis of core obtained from the HRZ shale. The follow-up well with a multi-stage stimulation and test of the HRZ shale, Icewine#2, was spudded in 2Q 2017.’
With project Icewine set to be finalised in the final quarter of this year, it will be interesting to see where the company goes from here.
For Money Morning
PS: Read this BEFORE you uy gold: Why one resource expert believes the gold price could be headed lower in 2018. Download this free report to find out what could be ‘The Right Time to Buy Gold Stocks in 2018’.