TIDM88E
RNS Number : 1102F
88 Energy Limited
17 March 2022
This announcement contains inside information
17 March 2022
88 Energy Limited
Merlin-2 Drilling Ahead
Highlights
-- Merlin-2 surface hole successfully drilled to 2,005 feet, cased and BOP system tested.
-- Operations progressing as planned with the Arctic Fox rig
scheduled to commence drilling ahead to the reservoir targets
imminently.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or
the Company ) is pleased to report that the Merlin-2 surface hole
was successfully drilled to 2,005 feet, the surface casing
installed and cemented, and the Blow Out Preventer ( BOP ) system
tested.
Operations are progressing as planned with the Arctic Fox rig
scheduled to commence drilling ahead to the reservoir targets
imminently. The Company anticipates all target zones to be
intersected prior to reaching the permitted Total Depth ( TD ) of
approximately 8,000 feet, with drilling to TD at Merlin-2 expected
to take up to two weeks from this point.
The Merlin-2 well is designed to appraise the N18, N19 and N20
primary targets located in the Nanushuk Formation, which were
encountered in Merlin-1 and returned compelling evidence of
hydrocarbons across these three separate zones. Given the
suboptimal placement of the Merlin-1 well, with respect to
reservoir development (a necessary trade-off to maximise the number
of stacked targets), the Merlin-2 well represents a move east from
Merlin-1 towards the shelf edge where thicker and higher
porosity/permeability formations are anticipated.
During the current drilling phase, logging while drilling and
mudlogging are set to provide initial indications as to the
prospectivity of the target zones at the Merlin-2 location. After
reaching TD, a sophisticated wireline logging program is planned to
be run, which includes collection of down hole samples and side
wall cores. The wireline logging program is expected to take
approximately five to seven days to be completed.
The Company will provide further updates subsequent to Merlin-2
achieving TD.
The graphics below can be viewed in the pdf version of this
announcement, which is available on the Company's website
www.88energy.com:
-- Figure 1. Wireframe image showing respective Merlin-1 and
Merlin-2 well locations, facing east and overlain with predicted
reservoir sands profile.
-- Figure 2: Article Fox drill rig at the Merlin-2 drilling location
-- Map of Project Peregrine and Recent Nanushuk Discoveries
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
Finlay Thomson , Investor Relations Tel: +44 7976 248471
Fivemark Partners , Investor and Tel: +61 410 276 744
Media Relations Tel: +61 422 602 720
Andrew Edge / Michael Vaughan
EurozHartleys Ltd Tel: +61 8 9268 2829
Dale Bryan
Cenkos Securities Tel: +44 131 220 6939
Neil McDonald / Derrick Lee
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 approximately 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.
The Merlin-1 well was spudded in March 2021 with drilling
operations completed in April 2021. Interpretation of results was
completed in August 2021 with post-well evaluation successfully
demonstrating the presence of oil in N20, N19 and N18 targets, with
41 feet of net log pay across the three reservoir intervals noted
and geochemical analysis determining the oil to have an estimated
API gravity between mid-30 to low-40 API (light oil).
A second well, the Merlin-2 appraisal well, spudded in early
March 2022 as a follow-up well to the Merlin-1 exploration well.
Merlin-2 is targeting a net entitlement mean Prospective Resource
of 652 million barrels (unrisked)(1,2.)
To view the Company's video and animated presentations of
Project Peregrine, as well as the Merlin-1 well results and details
of the Merlin-2 well, please click on the link to the 88 Energy
website www.88energy.com.
Independent oil and gas reservoir evaluation consultancy, ERCE
Australia Pty Ltd (ERCE), conducted an updated assessment of the
Project Peregrine prospective resources post the Merlin-1 well
results. The updated prospective resource estimates and risking
assessments for Project Peregrine are noted below.
Revised Project Peregrine Prospective Resources
Project Peregrine: Alaska North Unrisked Net Entitlement to 88E (1,
Slope 4) Prospective Oil Resources (MMstb)
Prospects (Probabilistic Calculations) Low (1U) Best High Mean COS (3)
(2U) (3U)
---------
Merlin-2 (Nanushuk - N20, N19
and N18) 64 329 1,467 652 56%
========= ====== ====== ========= ========
Merlin-1A (Nanushuk - N14S) 25 87 282 132 17%
======================================== ========= ====== ====== ========= ========
Harrier (Nanushuk) 41 175 796 353 24%
======================================== ========= ====== ====== ========= ========
Harrier Deep (Torok) 35 226 1,132 486 20%
======================================== ========= ====== ====== ========= ========
Prospects Total 1,624(2)
---------------------------------------- --------- ------ ------ --------- --------
1. The Prospective Resources presented here are the result of a
risked probabilistic aggregation of the individual stacked
prospective layers in each prospect; the success case estimates
present the distribution of possible outcomes in the event that at
least one prospective layer is successful.
2. Unrisked mean total is not representative of the expected
total from the four prospects and assumes a success case in all
four wells.
3. COS represents the geological chance of success of at least
one of the stacked layers which comprise each prospect. This
excludes phase risk which ERCE has estimated to be 70% oil (30%
gas). The Prospective Resources have also not been adjusted for the
chance of development, which is estimated by 88 Energy to be 60%
(including phase risk), ERCE sees this as reasonable based on the
data available. Quantifying the chance of development (COD)
requires consideration of both economic contingencies and other
contingencies, such as legal, regulatory, market access, political,
social license, internal and external approvals and commitment to
project finance and development timing. As many of these factors
are out-with the knowledge of ERCE they must be used with
caution.
4. Gross Prospective Resources include off-block volumes over
which 88 Energy has no mineral rights. Net working interest
Prospective Resources are based on the on-block volumes and 88
Energy's 100% working interest. Net entitlement Prospective
Resources are the net working interest Prospective Resources less
royalties payable to others. The net entitlement interest to 88
Energy is calculated as 84.7% of net working interest after
deduction of state royalty (12.5%) and overriding royalty interests
(1.3%and 1.5%).
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
MSCJRMFTMTJBMIT
(END) Dow Jones Newswires
March 17, 2022 03:00 ET (07:00 GMT)
Grafico Azioni 88 Energy (LSE:88E)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni 88 Energy (LSE:88E)
Storico
Da Apr 2023 a Apr 2024