88 Energy’s Share Price Down over 16% after Operations Update

After releasing the operations update of its Winx-1 project today, 88 Energy Ltd [ASX:88E] saw a significant drop in share price.

At the time of writing, 88 Energy’s share price is trading at $0.015, down 16.67%.

A drop in share price after a big announcement such as a company’s operational update can make a stock more sensitive to shifts.

Ideally, shareholders want a stock with the best chance of rising gradually over time…but that doesn’t always happen, which we’ve seen today with 88 Energy.

That’s why Money Morning contributor Jason Stevenson is laying down the top ten mining stocks he thinks you should be watching now. Read more about it here for free.

Drilling results don’t help 88 Energy’s share price

The Alaskan North Slope oil and gas operations, in the Winx-1 exploration well, saw the Primary Nanuskuk (topset) targets between 4,667 and 4,091ft. 88 Energy also saw elevated mud gas readings and oil shows, as well as an increase in LWD (logging while drilling) resistivity recorded within interval.

Additionally, data from a successful well nearby, owned by joint venture Nanushuk, is comparable to data observed in Winx-1 — which looks encouraging.

88 Energy’s managing director, Dave Wall, commented on the exploration results:

There are early signs of encouragement at multiple horizons in the Winx well; however, it is too early to say whether these will result in a commercial discovery at this stage as more data and analysis is required.

The forward program, to be implemented over the coming days, is designed to improve confidence in the interpretation and assist in the decision to proceed with production testing, if appropriate.

88 Energy’s 2019 outlook

After reaching Total Depth for its Winx-1 Nanushuk well, 88 Energy is moving forward with its plan to run a ‘comprehensive wireline logging program over the zones of interest. Subject to the results of this program the joint Venture will decide whether to proceed to stimulate and test the most prospsective of the Nanushuk primary targets,’ as reported in 88 Energy’s ASX announcement today.

Looking forward, shareholders will have to wait for these encouraging results to come to fruition.

In the meantime, stay tuned.

Regards, 

Ryan Clarkson-Ledward,
For Money Morning

PS: Fire up your portfolio in 2019 With these ten Aussie miners. Read more about it here for free in Jason Stevenson’s new report ‘Top 10 Mining ‘Money-Makers’ to Buy Now’.


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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