(Alliance News) - 88 Energy Ltd on Wednesday revealed that testing has identified "additional upside" at its Umiat oil field in northern Alaska.
Post well testing and analysis by the oil exploration and appraisal company suggests there is "potential for additional reservoir sands in the footwall of the Umiat structure".
The Umiat footwall has only been penetrated by one well, drilled in 1952, but 88 Energy is undertaking a review of the Umiat oil field to determine commercialisation options as a stand-alone development.
Shares in 88 Energy were up 15% at 2.79 pence each in London after the announcement.
Perth, Australia-based 88 Energy also revealed that studies underway to review historical Umiat oil field development plans have identified potential cost savings on planned development capital expenditure.
In separate news, the company said it had been granted a two-year extension by the Bureau of Land Management for its obligations at the Umiat oil field, as it continues with testing and analysis at the acreage.
88 Energy said it would use the additional 24 months to identify potential future drilling locations, develop an understanding of potential environmental impacts of further exploration and investigate previous scoping studies.
During the extension period the company also plans to look closely at improving efficiencies at Umiat, including the synergies with Project Peregrine, which it owns outright following a deal last month that saw it pay USD14 million in shares for a further 50% stake.
By Will Paige; willpaige@alliancenews.com
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88 Energy (88E)