Cavendish analysts have reacted positively to 88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF)’s statement published on Monday unveiling some 250 million barrels of contingent oil equivalent resources in the BFF reservoir at its Hickory-1 project area.
The independently certified contingent resource assessment, prepared by US-based independent consultancy Netherland, Sewell & Associates (NSAI), said it comprises 136 million barrels of recoverable hydrocarbon liquids (oil and natural gas liquids) plus 628 billion cubic feet of recoverable gas.
James McCormack at Cavendish called it “an important milestone on the path to commerciality for Project Phoenix”.
As a result, 88 Energy was given a 1.1p target price against a 0.35p publication price, suggesting that stakeholders could be in store for more than a 200% upside.