88 Energy’s Share Price Continues to Fall on Winx-1 Project Results

By ,

Since this time last week, 88 Energy Limited [ASX:88E] shares have fallen in price by a further 12%, after a 36% drop during trading last Wednesday, triggered by poor final report on their winx-1 project.

When we last covered 88E, we alluded to the chance that good news on their potential farm-out arrangements could turn the plummeting share price around.

Today, the company has indeed released an update on the Alaska projects, which has helped the share price remain steady through trading today.

Some progress made in farm-outs

According to the announcement, the farm-out process for ‘Project Icewine — Conventional’ has progressed to the next stage.

After ‘requests were made by potential farminees for more time to evaluate the opportunity which the company granted’, the company have now selected a ‘preferred bidder’ and discussions have begun.

The update also revealed the upcoming selling of an Oil Search option (set to expire in June) which the company acquired in 2017. As per the announcement, this option includes acreage near Winc-1 and Project Icewine.

Other project highlights include a planned farm-out launch for ‘Project Icewine — Unconventional’ in mid-2019, as well as near-completed interpretation and resource evaluation on the Yukon Leases.

What this tells us about 88 Energy’s potential

While ‘Project Icewine — Conventional’ seems to have made the most progress out of the Alaska projects, the success of its bidding discussions are in no way confirmed.

As the company reported in the announcement:

There is no guarantee that the parties will agree to terms and close out the transaction. A further announcement will be made in due course on the outcome of the ongoing negotiations.’

And as reiterated by 88 Energy’s Managing Director, David Wall, ‘no deal is done until it is done’.

Also, as for the underperforming Winx-1 project, all that has been said on the drilling is that further evaluation of ‘the remaining resource potential of the acreage’ is underway, with ‘several working theories’ as to its true value.

As such, the stagnant nature in today’s price for 88 Energy’s shares may be a clear reflection of the market’s patience while further concrete details are yet to be announced.

We will keep you updated on any future announcements.


Ryan Clarkson-Ledward,
For Money Morning

PS: If this update has made you question the potential of Aussie mining stocks, worry not! Read this free report by expert analyst Jason Stevenson on the ‘Top 10 Mining ‘Money-Makers’ to Buy Now’ to find out which Aussie mining companies you could add to your portfolio today. Download now.

About Ryan Clarkson-Ledward

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.

Ryan is also the Editor…

88 Energy Share Price Up on $24 Million Placement (ASX:88E)

The 88 Energy [ASX:88E] share price is up following a $24 million placement to fund drilling of Merlin-2 appraisal well. 88E’s share price is currently up 6%.

GameStonk Rallies in Oz? — Virtually Unknown’ Company Tacks on 667%

In today’s Money Morning…‘virtually unknown’ company tacks on 667%…GameStonk rally was pure, but there are plenty of sharks in Oz…how things have changed…and more…

88 Energy Share Price Savaged on Winx-1 Final Report

At time of writing, the share price of 88 Energy Limited [ASX:88E] has been savaged, dropping 44%, trading at 1.4 cents. It comes on the back of a final report on its Winx-1 project.

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%.