Here's why the 88 Energy share price is rocketing 14% today

With energy prices at multi-year highs, ASX investors are keeping a close eye on oil and gas exploration results.

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Key points

  • The 88 Energy share price is leaping 14% higher
  • Positive signs are emerging from Alaska's Project Icewine oil and gas acreage
  • An independent resource update for the project is scheduled for Q2

The 88 Energy Ltd (ASX: 88E) share price is on fire today, up 14.3% at the time of writing.

88 Energy shares closed yesterday at 1.4 cents and are currently trading at 1.6 cents.

That gives the ASX oil and gas company a market cap north of $238 million.

So, what's driving investor interest today?

What resource update was announced?

The 88 Energy share price is charging higher after the company updated the market on the ongoing assessment of its Project Icewine acreage.

Project Icewine, located on the central North Slope of Alaska, covers some 195,000 acres of highly prospective oil and gas territory.

The ASX energy share said that preliminary third-party mapping of 88 Energy's Shelf Margin Delta (SMD) play "indicates extension of the SMD play fairway", onto its Project Icewine leases. The company noted that Pantheon Resources has had "significant success" on its neighbouring lease over the past few months.

According to the release:

The source rocks (GRZ/HRZ) for the Brookian plays within the Project Icewine area are modelled to be within the oil mature window, with historical wells reporting abundant oil shows and interpreted oil saturations from electric log data.

88 Energy also noted that testing undertaken by Pantheon in a well drilled only 2.8 miles (4.5km) north of the Project Icewine "confirmed reservoir deliverability of light, sweet oil".

Also potentially spurring ASX investor interest today, and helping send up the 88 Energy share price, was the report that mapping of the company's Seabee Lower Basin Floor Fan and Slope Fan System are close to complete.

Shareholders awaiting the independent resource update for Project Icewine were informed this is expected to be done in Q2.

88 Energy share price snapshot

Despite today's big boost, the 88 Energy share price remains down 47% in 2022. By comparison, the All Ordinaries Index (ASX: XAO) is down 2% year-to-date.

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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