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.
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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.
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