88 Energy (LON: 88E) provided an update on its operations on the North Slope of Alaska on Thursday, stating that geochemical analysis of fluid extracts from selected core samples demonstrated the presence of hydrocarbons.
According to a statement released by the group, the depths were among the prospective zones that could not be tested with the RDT downhole fluid extraction tool.
“These zones also correspond with depths where good oil shows were noted during drilling,” they stated, also labelling the results as “highly encouraging”.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
There is still further quantitative screening on remaining samples to commence, while phase two of side-wall core trim analysis will begin soon, including quantitative extraction, SARA, isotopes and biomarker analysis.
Despite the company being encouraged by the results, 88 Energy’s share price has fallen 3.28% to 1.238p so far today.
Should you invest in 88 Energy shares?
88 Energy shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are 88 Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies