88 Energy suspends operations at Icewine#2 well

AIM-listed explorer 88 Energy has suspended operations at its Icewine#2 well, located on the North Slope of Alaska.

After careful consideration, 88 Energy made the decision to suspend the well, but noted that both it and its joint-venture partner believed that results from the site "support the potential economic viability" of the HRZ shale play and were within the range of outcomes achieved at other early stage unconventional plays, despite not achieving a flow rate representative of the reservoir's capability.

Demobilisation of drilling equipment has already been completed.

88E and Burgundy Xploration, the group's JV partner on the project, told investors on Monday that flowback data, combined with results from core and logs, revealed that the HRZ was comparable to other early-stage commercial unconventional plays and that, as per those plays, progressing to horizontal appraisal wells was now the best use of its time and money.

88 Energy's managing director, Dave Wall, said, "Ideally the Icewine#2 well would have delivered a stronger hydrocarbon flow rate and it is disappointing that this was not achieved; however, the joint venture has many positive takeaways from the well and remains confident about the potential of the HRZ play."

"Future evaluation of the large potential already identified is planned to be accomplished via farm-out and this process has already commenced," he added.

As of 0825 BST, 88E shares had tumbled 21.57% to 1p