Here's why the 88 Energy (ASX:88E) share price is flying 32% higher today

This comes after the release of an update earlier.

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The 88 Energy Ltd (ASX: 88E) share price has bolted out of the gates in today's trading session.

Shares in the energy company are flying more than 32% higher after releasing an update earlier today.

Let's take a look at why investors are bidding the 88 Energy share price higher today.

88 Energy share price soars on oil results

The 88 Energy share price has taken off after the company confirmed the presence of light oil at its Merlin-1 well.

According to the update, post well evaluation successfully demonstrated the presence of oil in the N20 and N18 targets.

88 Energy also noted that a new target well (N19), also returned a strong hydrocarbon signature following geochemical analysis.

The update noted that wireline analysis and core data correlated to 41 feet of net log pay across the 3 reservoir intervals.

Geochemical analysis of cores from the intervals also indicated the presence of light oil. Analysis of the cored returned an estimated API gravity between mid-30 to low 40's.

88 Energy's management highlighted promising results and noted plans for an appraisal well for the first quarter of 2022.   

Snapshot of the 88 Energy share price

88 Energy is an Australia based oil and gas explorer. The company has numerous exploration Projects and prospects with oil potential.

88 Energy is the operator of Project Peregrine in Alaska holding a 100% working interest in the acreage. The company's Merlin-1 well at Project Peregrine was drilled in March 2021 to a depth of 5,267 feet.

Overall, the 88 Energy share price has had an extremely volatile year thus far.

After opening the year below 1 cent per share, the 88 Energy share price bolted to a high of 9.6 cents in April.

Since then, shares in the oil explorer have tumbled.

The 88 Energy share price recently received a boost after providing an update on its Umiat oil field.

At the time of writing, shares in 88 Energy are trading more than 20% higher for the day at 5.3 cents. Shares in the company were up more than 32% earlier, after hitting an intra-day high of 5.6 cents.

Overall, the 88 Energy share price remains more than 529% higher for the year.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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