TIDM88E
RNS Number : 6281W
88 Energy Limited
27 April 2021
27(th) April 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 on the North Slope of Alaska.
Highlights
-- Testing commenced on sidewall cores, cuttings, mud gas and fluid samples from Merlin-1
o Results expected over next 2 - 10 weeks
-- Initial mapping of additional prospective zones encountered in Merlin-1 encouraging
-- Results on acreage adjacent to Icewine have positive implications
Details
Sidewall cores, mud gas and fluid samples taken from Merlin-1
are now undergoing testing to determine oil saturation, oil typing,
PVT characteristics, porosity, permeability and rock mechanics.
Cuttings will also go through a Volatiles Analysis Service ("VAS")
to assist with the interpretation of the results from the well.
The rough schedule of testing and results is as follows:
-- Core photography (white and UV light) and geological descriptions 2-3 weeks
-- Isotope analysis of mud gas 2-4 weeks
-- VAS on cuttings 2-4 weeks
-- Results from centrifugal spin out of oil samples from select cores 3-4 weeks
-- Routine core analysis including saturations from Dean Stark 4-8 weeks
-- Fluid analysis with oil geochemistry 5-10 weeks
These results will then be integrated into a final petrophysical
interpretation.
During the drilling of Merlin-1 several prospective zones were
encountered that had previously been unmapped. These zones
exhibited good shows with potential for pay, subject to results
from the testing mentioned above. An initial mapping exercise has
indicated that these zones may be of similar magnitude in terms of
volumetric range as the originally targeted primary zones. Further
work is required to confirm this; however, the early work is
encouraging.
Project Icewine
88 Energy has also been closely monitoring activity nearby to
the northern border of its Project Icewine acreage, where a flow of
light oil from the Kuparuk has been reported from the Talitha-A
well. (See Pantheon Resources AIM:PANR press release dated 19(th)
April 2021). Additional insights into the wettability of the
Kuparuk formation have also been highlighted as part of the results
from Talitha-A, which may have positive ramifications for 88E's
previous interpretation of this horizon. All three wells drilled by
88 Energy at Project Icewine have encountered good quality
reservoir in the Kuparuk formation, with indications of
hydrocarbons. These had previously been interpreted as likely gas
condensate or residual oil and no mapped targets had been
identified, as this was not a play that 88E had been pursuing. The
results at Talitha-A are highly encouraging regionally for the
Kuparuk, including across Project Icewine, and the 88E internal
geoscience team is now re-assessing the potential across our
acreage.
It is also evident that several of the other prospective
horizons encountered in Talitha-A, where pay has been interpreted
by Pantheon, extend into Project Icewine acreage.
Managing Director, David Wall, commented: "The oil shows and
other encouragement seen in the Merlin-1 well bodes well for the
potential at Project Peregrine and we look forward to providing the
results from the laboratory analysis over the coming weeks.
It is also highly positive to see pay zones and a flow rate of
light oil achieved from zones on adjacent acreage that are also
prospective at Project Icewine, where an internal review has
commenced to determine the significance of the neighbouring
results."
Pursuant to the requirements of the ASX Listing Rules Chapter 5
and the AIM Rules for Companies, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 35
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified
Geologist/Geophysicist who has sufficient experience that is
relevant to the style and nature of the oil prospects under
consideration and to the activities discussed in this document. Dr
Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and
reserve estimates to be fairly represented and consents to its
release in the form and context in which it appears. His academic
qualifications and industry memberships appear on the Company's
website and both comply with the criteria for "Competence" under
clause 3.1 of the Valmin Code 2015. Terminology and standards
adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this
document.
About Project Peregrine
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 initially estimated US$12.6m
total cost) for the Merlin-1 well.
The Merlin-1 well was spudded in March 2021 and targeted 645
million barrels of gross mean prospective resource(#) . Wireline
logging at Merlin-1 is now complete and interpretation of results
is underway. 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 Prospective
North Slope Oil Resources (MMstb)
Prospectus (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;
- Graphic 1: Multiple stacked sand bodies within thick Nanushuk section in Merlin-1
- Graphic 2: Kuparuk and Theta West Prospects on adjacent acreage to Project Icewine
- Graphic 3: Shelf Margin Deltaic Extension into Project Icewine
- Graphic 4: Project Peregrine and Recent Nanushuk Discoveries
- Graphic 5: 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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