EEENF - 88 Energy Ltd
Related ticker symbols: ASX: 88E
88 Energy Ltd. (ASX: 88E, OTC: EEENF) is an oil and gas exploration company with a portfolio of projects in Alaska and Texas. The company’s primary focus is Project Peregrine in the North Slope of Alaska. In early 2021 drilling was completed for the Merlin-1 well and light oil was found. 88 Energy expects to spud Merlin-2 in Q1 2022.[1]
Merlin-2[edit]
On March 29, 2022 88 Energy announced that it would plug the Merlin-2 appraisal well due to insufficient reservoir quality.[2]
Additional projects in Alaska[3][edit]
Umiat Oil Field: 88 Energy holds a 100% working interest in approximately 17,000 acres with potential reserves estimated at 94 MMBO.
Project Icewine: 88 Energy holds a 75% working interest in approximately 193,000 acres with prospective reserves of 1.77 BBOE.
Project Yukon: 8 8Energy holds a 100% working interest in approximately 38,000 acres with prospective reserves of 90 MMBO.
Project Longhorn in Texas holds reserves of 2.1 MMBOE and is a low risk opportunity to diverse the company’s portfolio[4]. This area currently produces about 300 boe per day from 32 wells. Production is expected to increase due to capital expenditures in 2022[5].
Investor Updates[edit]
February 2022[6]:
- Highlights from an investor update provided in February 2022:
- Merlin-2 well expected to spud in March 2022 targeting 652 MMBO
- Project Icewine is in the appraisal stage with 2D and 3D seismic acquired
- Umiat oil field is ready to begin development with assessment currently being conducted
Financials[edit]
88 Energy is in a good position to pursue its exploration and development opportunities with cash on hand of $32,318,000 and no debt[7].
References[edit]
More News: OTC Markets
- 88 Energy Ltd - March 2, 2022: Company website
- 88 Energy gets early production lift at newly acquired Texas assets - April 12, 2022: by Proactive Investors - A workover by Lonestar, the operator, immediately boosted oil and gas production rates
- 88 Energy (EEENF) Testing Unsuccessful - Plan To Plug Merlin 2 - Stock Crashes - March 29, 2022: In this video, I go over the recent news from 88 Energy and their plan to plug the Merlin 2 after an unsuccessful testing of their well.
- Twitter - March 1, 2022:
- Reddit - March 1, 2022:
This company is a good example of enormous potential that will remain untapped. The Merlin-2 disappointment is emblematic of this management team's ability (or lack thereof) to become a true production company. Whether is is luck, skill, or a combination of both, 88 Energy seems to always be so close yet never able to reach the finish line.
It has taken a long time for 88 Energy to get to this point, but I think this is a good time to get in the stock. The outlook it good for drilling this year and they have a strong cash position. This play has been substantially de-risked. Early investors have paid the price for massive dilution over the years but new investors may reap the benefits now. Still kind of risky so I'm not suggesting making this the centerpiece of a portfolio.
