The 88 Energy Ltd (ASX: 88E) share price is rocketing today, up 11% to 5 cents apiece in late morning trade, having earlier posted gains of more than 20%.
Below we take a look at the ASX energy share's latest oil field update.
What update did 88 Energy report?
The 88 Energy share price is soaring after the company updated the market on its Umiat oil field in the US state of Alaska.
According to the release, new studies conducted in conjunction with its Merlin-1 post well testing and analysis "have identified additional upside" at the Umiat oil field.
This comes after the oil field lease holder Emerald House, a wholly owned subsidiary of 88 Energy, received a data pack on the region that included the Umiat 3D seismic data. Before that, the company only had data interpreted from 2 seismic lines across the Umiat structure.
Other tailwinds
The 88 Energy share price may also be getting lifts after it reported that Emerald House had received approval from the US Bureau of Land Management (BLM) to defer its Umiat Year 2 Unit well commitment by 24 months. That commitment has now been pushed back to 31 August 2023.
The company said the extra time would enable it to optimise its plan for full field development. That includes looking into potential synergies with the Project Peregrine plans.
It also needs extra time to review the "extensive amount of historical data" it received from the sellers of the Umiat oil field. Potential development cost savings have been identified in studies already underway reviewing historical Umiat development plans.
88 Energy entered into an agreement to acquire the Umiat oil field on 8 January 2021 via its wholly owned subsidiary Emerald House. According to the company:
Umiat is a known oil field of high quality (38-degree API) crude at shallow depth. It is covered by two leases comprising 17,633 acres, which are in a unit that was formed in September 2019 with an initial 10-year term.
88 Energy share price snapshot
The 88 Energy share price has been on a tear this year, up an eye-popping 400% since March 2021. By comparison the All Ordinaries Index (ASX: XAO) has gained 26% over that same time.
