The 88 Energy Ltd (ASX: 88E) share price has jumped significantly this week.
The price movement coincides with updates on two of the oil and gas explorer's Alaskan projects — including a rig mobilisation and an oil interception.
At the time of writing, the 88 Energy share price is up 2.08% today at 4.9 cents. That's a 28.9% gain on last Friday's closing price of 3.8 cents. For comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.17%.
So, what's going on with 88 Energy?
Icewine oil obtained
The company's Project Icewine site is located in the North Slope of Alaska — an area pertaining to about 195,000 acres in which the company has a 75% stake.
Today, the oil explorer announced that light oil had been "recovered" during tests at the neighbouring Pantheon Resources' Talitha-A well.
As the Pantheon well is located 2.8 miles north of Icewine, 88 Energy says "all targets are interpreted to extend into 88 Energy's Project Icewine acreage".
The data from Pantheon, along with results obtained last year, will go into an "independent resource report for Project Icewine focusing on the eastern leases in the first half of 2022".
Peregrine site update sparks 88 Energy share price jump
On Tuesday, the oil explorer gave an update into its Project Peregrine site — more specifically, its Merlin-2 well — also located in the same region of Alaska.
The well was initially spudded (drilled) in March last year, with drilling operations completed the following month.
A rig has been mobilised for drilling next week. It will be initially dug to a depth of 2,000 feet, with permission to extend to 8,000 feet.
88 Energy said a well production test has been implemented, with "equipment placed on standby during initial well site operations".
Further, 88 Energy reported:
Flow testing of Merlin-2 will be contingent upon the wireline results, in particular the MDT outcomes, as well as government approvals and weather window considerations.
The company has a 100% working interest in the site.
The 88 Energy share price surged 9.5% on the day of the announcement, and 13% the following day.
What did management say?
Commenting on the Peregrine update, 88 Energy managing director and CEO Ashley Gilbert said:
We are now entering the final phase of pre-spud preparations and look forward with excitement to the next few weeks of drilling operations.
Success at Merlin-2 has the clear potential to be transformational for our shareholders and we look forward to providing updates as the drilling of this appraisal well progresses.
88 Energy share price performance
Over the past 12 months, the 88 Energy share price has increased by 380%. It saw a jump of 135% over four days in April last year after the explorer released an update on its Peregrine site.
Its shares have also soared by 92% this year to date.
The company has a market capitalisation of $762.48 million.
