Great insight14 Mar 2019 10:02
Investing in global oil majors such as Woodside (ASX: WPL) and Oil Search (ASX: OSH) is one way of getting exposure to the often-lucrative oil and gas industry, given both companies are producers and have multiple assets.
However, whilst not risk free, smaller oil explorers such as 88 Energy (ASX | LSE: 88E) can be much more leveraged to success given the potential payoff if they can discover large volumes of oil.
Currently capped at just A$100 million, 88E is exploring for large scale, multi-billion barrel oil resources across the North Slope, onshore Alaska, and the company is gearing up for a significant amount of activity over the coming months.
88E has just bolstered its conventional resource size at Project Icewine, and now has 2.2 billion barrels net (gross mean prospective resource) to its name – not counting its mammoth unconventional portfolio, which also runs into the billions of barrels of prospective resources.
When it comes to prospective conventional resources, 88E’s 2.2 billion net gross mean prospective resource is more than any other ASX listed company that we could come across.Given such a large prospect portfolio, 88E must be closing in on a farm out deal for its conventional asset at Project Icewine by years end.
Aside from Project Icewine, 88E has a stake in the Winx-1 well, slated for drilling in February 2019. The drill target is immediately adjacent to and a direct analogue of the Horseshoe 1/1A oil well drilled in 2017. Horseshoe is part of the billion barrel plus Nanushuk oil play fairway – one of the largest conventional oil fields discovered in the US in more than 30 years.
We will soon see if 88E and its consortium partners can contribute to yet another discovery on the Slope in February. 88E has a history of being able to deliver significant gains for investors when entering into a high newsflow period, regardless of broader market conditions – and with a potential farm-out by year end followed by high impact drilling, we think that history has a good chance of repeating....
Source: https://www.nextoilrush.com/88e-bolsters-multi-billion-barrel-oil-resource-farm-out-year-end
Note: this article was posted in Nov 2018 - apart from winx nothing else has change - my views completely on this. Must read full article.