News: 88 Energy highlights enhancements to Alaska drilling plans

88 Energy (ASX:88E, LON:88E) highlighted that its newly accelerated drill plans are enhanced by the use of an existing gravel pad as the drilling location.

Drilling the Icewine 1 well from the existing gravel pad should provide significant benefits for the permitting process, as well as the costs and timing of the drill programme, the company said.

It may also minimise adverse effects on vegetation, habitat, affected wildlife and cultural resources.

The permitting process began during the last quarter, ended March 31, and the exploration group has scheduled the drill programme to begin before the end of the calendar year.

A quarterly report highlighted what the company describes as “the beginning of a fresh chapter” for new and existing shareholders.

In the three month period the company changed its name from Tangiers Petroleum and continued it re-launched business, focusing on shale and conventional prospects in Alaska rather than deep-water offshore Morocco.

During the quarter, which included an equity fund-raising, the company had a A$6.2mln capital inflow and a A$5.15mln cash outflow. It spent A$0.57mln on exploration and evaluation activities, as well as A$0.49mln on administration and other operating costs.

Cash reserves at the end of the quarter amounted to A$6.23mln.

Following the update, broker RFC Ambrian repeated a 'speculative buy' stance on the shares.

Icewine is an attractive high-risk/potentially high-reward project, it reckons, which should give 88E an initial high working interest (87.5%) in a 400 sq km opportunity, it said.

The main target is an untested, unconventional liquids-rich shale play in the prolific shale complex that co-sourced the largest oil field in North America, while the shallower secondary conventional opportunity is a deep-water sand play.

"The company expects to have the acreage award confirmed in the next few months and is continuing to sound out potential farminees. Once the award is confirmed, management hopes to farm out an interest in the project for work programme carry, including the drilling of the first well," said the broker.