88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) shares advanced on Monday thanks to the latest encouraging results from Alaska, where drilling has now reached a successful conclusion.
The Hickory exploration well, on Alaska’s North Slope, successfully encountered all its primary and secondary targets, plus one additional zone that was not anticipated prior to drilling.
Initial evidence of oil shows has added encouragement that the well can potentially yield new discoveries.
Ultimately the next phases of work will help clarify how significant the Hickory well result can be for 88 Energy.
It is obviously positive that the well has so far confirmed geology anticipated prior to drilling by the 88 Energy team.
Much more data will be required to confirm what volume of hydrocarbon resources may be present and how material the project can be.
The initial well data does, however, mark a significant and potentially validating step forward.
The well is located on a licence block adjacent to Pantheon Resources acreage, which is already host to multiple new discoveries – these are also in the path to being validated through phases of testing.
88 Energy is now conducting further analysis, with the next round of data due in the coming weeks.
After that, investors will have a better idea of what the Hickory project could be.
Nevertheless, the most significant data won’t be available for a number of months.
It intends to conduct production flow testing in the 2023/24 winter season in the meantime the anticipation among 88 Energy’s engaged investor base will no doubt build, and, it will remain a stock to watch.