There’s no such thing as bad data.

Big news last week was 88 Energy’s (ASX:88E) much-anticipated Winx-1 oil and gas well in Alaska turned out to be a dud. It found dispersed clay in the matrix at the Nanushuk Topsets, which means the oil is somewhat less than freeflowing. Investors fled, dropping the share price by as much as 48 per cent to 1.3c.

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But today, 88 Energy says it’s integrating that data into their other data from the area, to help “further evaluate the remaining resource potential of the acreage”.

“There are several working theories that will be assessed over the coming months, including whether there is potential for better developed sands updip and in closer proximity to the successful Horseshoe-1/1A and Stony Hill-1 wells.”

It’s also staying focused on all the other things its oil and gas operations get up to on the North Slope of Alaska, including the fast-tracking the farm-out process on its Project Icewine conventional oil project. Having given potential farm-inees access to a new 3D seismic of the Western Play Fairway last year, it’s now got a preferred bidder and negotiations are under way.

88 Energy has also completed final processing of its Yukon 3d seismic and among the prospects identified is Yukon Gold-1, which was first drilled in 1994. It’s classified as “an historic oil discovery”.

Managing director Dave Wall says the farm-out process is “encouraging, but no deal is done until it is done”.

88 Energy shares were up slightly at midday.

88 Energy’s (ASX: 88E) share price over the past six months.

In other ASX oil news today:


  • Calima Energy Limited (ASX: CE1) has sold a stack of oil. Some CAD1,200,000 ($1,274,000) worth, actually, from its Paradise well. CAD1,000,000 will “be received immediately”. There are caveats from the lender, however.

  • Red Sky (ASX: ROG) completed an oversubscribed placement, receiving “firm commitments” to place 190 million shares at an issue price of 0.18 cents to raise $342,000 before associated costs. The placement is with predominantly existing sophisticated investors.

  • Freedom (ASX: FDM) has started drilling again at its Eagle Ford Shale operations in Dimmit County, Texas. It had been waiting 60 days for the return of its contracted drilling rig and is now aiming to drill four 7,700 foot horizontal wells to add to the 15 producing wells already on its acreage.

  • Tap Oil Limited (ASX: TAP) says the joint venture partners have approved a 2019 work program and budget for four firm wells and one contingent well at the Manora Oil Field. Specifically, three Manora Oil Field development wells that will start drilling in July 2019; one firm exploration well, scheduled for November 2019; and one exploration well contingent upon rig slot availability. Tap has a 30% interest in the Thai oil field, and has so far produced 14.36 million barrels of oil gross from 14 wells averaging 6,397 bopd gross in 2018.

  • Indus Energy (ASX: IND) snapped up South Australian private oil and gas Company New Era Oil and Gas Pty Ltd. It really did – 100%, “subject to a number of conditions”. New Era has farm-in rights to several oil and gas permits in the Cooper Basin, South West Queensland, Australia.