TIDM88E
RNS Number : 9484S
88 Energy Limited
22 March 2021
22(nd) March 2021
This announcement contains inside information
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM
88E) provides the following update related to its operations in the
NPR-A region of the North Slope of Alaska.
Highlights
-- Merlin-1 production hole drilling to commence imminently
-- At market share subscription agreement executed
Details
88 Energy is pleased to report that the Merlin-1 surface hole
was successfully drilled to 1,512ft as planned. Surface casing has
now been cemented and the blow out preventer system tested. A
formation integrity test (FIT) was successfully undertaken and the
rig is now drilling ahead in the production hole where the primary
Nanushuk targets are located. Planned total depth is 6,000'.
Logging while drilling and mudlogging will provide initial
indications as to the prospectivity of the well during this part of
the operation, which is expected take three to five days. A
sophisticated wireline logging suite will then be run, including
sidewall cores and downhole sampling. Wireline logging is expected
to take five to seven days.
If the results from the wireline logging are encouraging, then
the well will be completed with casing and a flow test
conducted.
88 Energy has entered into a share subscription agreement (the
"Subscription") with ELKO International LLC ("ELKO"), one of the
major contractors for the current drilling operations. Under the
agreement ELKO has subscribed 360,000,000 new Ordinary Shares at
$0.018 (the "Subscription Shares"), raising gross proceeds of $6.48
million at a 225% premium to the placement undertaken on 12(th)
February 2021. There are no fees associated with the
Subscription.
Application has been made for the Subscription Shares, which
will rank pari passu with the existing ordinary shares in the
Company, to be admitted to trading on both the ASX and AIM
("Admission"), with Admission expected to occur on 25 March
2021.
The Subscription does not require shareholder approval and the
issue and allotment of the Subscription Shares will rely on the
Company's placement capacity pursuant to ASX Listing Rule 7.1A.
Following the issue of the Subscription Shares, the Company will
have 12,521,590,431 ordinary shares in issue, all of which have
voting rights. The figure of 12,521,590,431 ordinary shares may be
used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or change their interest in, the Company.
Managing Director, Dave Wall, commented: "The endorsement of the
project by ELKO as we enter the critical phase of the drilling is
encouraging and will serve to fund the Company's share of the
recently announced cost overruns.
We wish all our shareholders good fortune over the coming
days."
About Project Peregrine - Imminent Drilling
Project Peregrine is located in the NPR-A region of the North
Slope of Alaska and encompasses 195,000 contiguous acres. It is
situated on trend to recent discoveries in a newly successful play
type in topset sands in the Nanushuk formation. 88 Energy has a
100% working interest in the project that will reduce to 50% post
the completion of funding as part of a recent farm-in, whereby 88E
is carried on the first US$10m (of an originally estimated US$12.6m
total cost) for the Merlin-1 well.
The Merlin-1 well was spudded on 10(th) March 2021 and is
targeting 645 million barrels of gross mean prospective resource(#)
. Flow testing of Merlin-1 is planned, if wireline logging confirms
a discovery. A second well, Harrier-1, may commence immediately
following completion of operations at Merlin-1, subject to results
from Merlin-1, schedule and permit approvals. Harrier-1 is
targeting gross mean prospective resource of 417 million barrels(#)
.
Independent Resource Assessment(#)
Project Peregrine: Alaska North Unrisked Net Entitlement to 88E Prospective
Slope Oil Resources (MMstb)
Prospects (Probabilistic Calculations) Low (1U) Best High Mean COS
(2U) (3U)
-------------
Merlin (Nanushuk) 41 270 1,463 645 37%
============= ========= ========= ======== =====
Harrier (Nanushuk) 48 207 940 417 24%
======================================== ============= ========= ========= ======== =====
Harrier Deep (Torok) 42 267 1,336 574 20%
======================================== ============= ========= ========= ======== =====
Prospects Total 1,636
---------------------------------------- ------------- --------- --------- -------- -----
(#) Please refer to release dated 23 February 2021 for full
details with respect to the Prospective Resource estimate,
associated risking and applicable Cautionary Statement.
Each of the Merlin and Harrier prospects is located on trend to
an existing discovery, in the same play type (Nanushuk topsets).
This has de-risked the prospects considerably and resulted in a
relatively high independently estimated geological chance of
success.
Cautionary Statement: The estimated quantities of petroleum that
may be potentially recovered by the application of a future
development project relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
The below graphics can be found in the pdf version of this
announcement available from the Company's website;
- Graphic 1: Project Peregrine and Recent Nanushuk Discoveries
- Graphic 2: Merlin-1 - on trend to large Willow oil field
Media and Investor Relations:
88 Energy Ltd Tel: +61 8 9485 0990
Dave Wall, Managing Director Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
EurozHartleys Ltd Tel: + 61 8 9268 2829
Dale Bryan
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
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