88 Energy's Icewine project 'flowing naturally'

Australia-based exploration firm 88 Energy announced an update on Tuesday regarding its onshore programme Project Icewine in Alaska, saying the operation was back flowing naturally at a rate of approximately 55 barrels of frac fluid per day.

88 Energy said Icewine#2 was shut-in on 10 July in order to allow for imbibition and pressure build up to occur within the HRZ shale with ongoing flow testing having recommenced on 31 August.

Located on the North Slope of Alaska, Icewine#2 also showed signs of 2-4 thousand cubic feet of gas, with a maximum rate of 8,000 cubic feet per day.

However, 88 Energy noted the programme was in its infancy and that the minor gas flows shown to date should not be seen as representative of the potential rate or compensation of hydrocarbon in the reservoir.

According to the company, further frack fluid was set to be removed from the well in order to collect a representative result with a decision to be made on how best to move forward coming "within the next two weeks."

As of 1050 BST, shares had fallen 6.50% to 1.87p.