http://money.aol.co.uk/2016/03/17/what-does-the-future-hold-for-t...

http://money.aol.co.uk/2016/03/17/what-does-the-future-hold-for-tern-plc-and-88-energy-ltd/





Exploration news

Like Tern, 88 Energy(LSE: 88E) has also had a great start to 2015. Shares in the company have risen just under 750% year-to-date, and there could be more gains to come.
Today the company announced the successful completion of Phase I for Project Icewine, which has resulted in a substantial de-risking of its flagship HRZ play. The analysis shows that the HRZ play has many similarities to US shale wells. As a result, the company believes that the prospect "will be highly amenable to fracture stimulation operations".
88's flagship project has already been described as being a thermal maturity "sweet spot," which contains "low viscosity vapour phase hydrocarbons modelled to flow at a 'material rate' based on the porosity and permeability results". Simply put, this means that 88 Energy's Alaskan project has some very attractive well economics.
And with today's news confirming that fracking is a realistic way of getting access to the oil, it shouldn't be long before 88 starts to generate sales. One of the great things about shale oil plays is that they can be brought online relatively quickly. There is no need for drawn out periods of fundraising and drilling the wells themselves is a relatively low-risk operation.
However, 88 could be struggling on the funding front as the company has conducted two equity issues so far this month. Alongside today's exploration news, the company also revealed that it was issuing three million new shares to keep the lights on.