TIDM88E
RNS Number : 7267T
88 Energy Limited
29 March 2021
29(th) March 2021
This announcement contains inside information
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E,
AIM:88E, OTC:EEENF) is pleased to provide the following update
related to its operations in the NPR-A region of the North Slope of
Alaska.
Highlights
-- Interpretation of logging while drilling data ("LWD")
indicates multiple potentially hydrocarbon bearing zones have been
encountered in the Nanushuk Formation whilst drilling Merlin-1
-- Wireline logging will commence shortly to confirm whether mobile hydrocarbons are present
Details
The Nanushuk Formation, which contains the primary targets for
the Merlin-1 well, was encountered 600' low to prognosis and is
interpreted to be 500' thicker than that encountered in the wells
drilled into the Willow Oil Field ("Analogue Wells") to the north
of the Project Peregrine acreage. Encouragingly, the gamma log
indicates the presence of more sand packages than those in the
Analogue Wells and that the sand packages in Merlin-1 are generally
cleaner in nature. Reservoir quality will only be known once
analysis of the wireline logging is complete.
Oil shows were recorded over multiple intervals in the Nanushuk
while drilling Merlin-1, including the primary targets.
Fluorescence ranged from relatively weak to moderate "dry"
fluorescence with slow to moderate sometimes fast streaming cut
when exposed to solvent. Mud gas peaks were also recorded and,
although generally not of the same scale of the increase in total
gas above background as that seen in the Analogue Wells, one of the
prospective horizons in Merlin-1 did have substantially elevated
total gas, similar to that in the Analogue Wells. Heavier gas
components, including C5, were observed over multiple intervals.
Resistivity was elevated over these intervals and is encouraging,
particularly in the context that the Nanushuk is considered a low
resistivity play type.
Fluorescence was also observed in the drilling mud ("pops")
accompanied by a petroliferous odour over three of the target
intervals. Significantly, one of these intervals is interpreted to
be part of a, potentially separate, sand package that is also
present in the Harrier prospect.
The results are considered encouraging and the wireline program
will now be run over the next week to determine the presence of
mobile hydrocarbons, post a mandatory test of the Blow Out
Preventer. Until the wireline has been completed and interpreted,
it will not be possible to define whether a discovery has been
made.
Managing Director, Dave Wall, commented: "Whilst there is still
work to do to confirm a discovery, the results to date are
encouraging and we look forward to providing an additional update
on the wireline program in 7 to 10 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 estimated US$12.6m total
cost) for the Merlin-1 well.
The Merlin-1 well is spud in March 2021 and is targeting 645
million barrels of gross mean prospective resource(#) . Wireline
logging at Merlin-1 will commence shortly. A second well,
Harrier-1, is planned to be drilled in 2022 and is targeting gross
mean prospective resource of 417 million barrels(#) .
Independent Resource Assessment(#)
Project Peregrine: Alaska Unrisked Net Entitlement to 88E
North Slope Prospective Oil Resources (MMstb)
Prospects (Probabilistic Low Best High Mean COS
Calculations) (1U) (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 geologic 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;
-- Figure 1: Oil Shows: Fluorescence and Cut Observed over Multiple Intervals
-- Figure 2: Project Peregrine and Recent Nanushuk Discoveries
-- Figure 3 : Merlin-1 - on trend to large Willow oil field
Media and Investor Relations:
88 Energy Ltd
Dave Wall, Managing Director Tel: +61 8 9485 0990
Email: admin@88energy.com
Finlay Thomson , Investor Relations Tel: +44 7976 248471
EurozHartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald / Derrick Lee
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFIFSEVRIAFIL
(END) Dow Jones Newswires
March 29, 2021 02:00 ET (06:00 GMT)
88 Energy (LSE:88E)
Historical Stock Chart
From Mar 2024 to Apr 2024
88 Energy (LSE:88E)
Historical Stock Chart
From Apr 2023 to Apr 2024
