TIDM88E
RNS Number : 1163K
88 Energy Limited
20 April 2020
20(th) April 2020
This announcement contains inside information
88 Energy Limited
Petrophysical Interpretation Confirms Pay in Torok and
Seabee
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM
88E) provides the following update related to results from the
Charlie-1 appraisal well, on the North Slope of Alaska.
Highlights
-- Preliminary petrophysical interpretation indicates
hydrocarbon pay in Torok and Seabee Formations
-- Initial lab results related to gas condensate analysis and core testing expected in weeks
Detail
Third party petrophysical interpretation of the logs in the
recently drilled Charlie-1 well has confirmed hydrocarbon pay in
the Torok, Seabee and Kuparuk formations. These are detailed in the
table below:
PROSPECT FORMATION GROSS NET NET PAY PAY POROSITY WATER COMMENT
to GROSS to
GROSS
ft ft % ft % (PHIT) (SWT)
avg avg
% %
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
UPPER
LIMA SEABEE 369 49 13 8 2 11.5 77 Not intersected optimally
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
Not intersected
optimally,
best shows in both
Charlie-1 and Malguk-1
with live oil observed
at surface. Relatively
good permeability
indicated on CMR and
confirmed by XPT.
LOWER High resistivity in
LIMA SEABEE 326 97 30 64 20 11.4 66 thin bedded sands.
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
UPPER
STELLAR TOROK 328 43 13 20 6 11.4 76 Not intersected optimally
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
Flowed gas condensate
MIDDLE into sample chambers
STELLAR TOROK 232 129 56 95 41 11.4 69 on downhole ORA tool
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
Clean sand indicated
near base. Flowed
gas condensate into
LOWER sample chambers on
STELLAR TOROK 95 55 58 49 51 11.1 55 downhole ORA tool.
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
Not mapped. Reasonable
permeability indicated
on CMR. Likely wet
KUPARUK KUPARUK 117 61 52 44 38 13.8 70 gas.
---------- ----------- ------ -------- -------- ---- ----------- -------- ------ --------------------------
Cutoffs: PHIT>=8.5%; SWT<=80%, Vshale<=40%
Over 280' feet of net pay is interpreted over the Seabee, Torok
and Kuparuk formations, which compares favourably to pre-drill
expectations; however, confirmation of rock properties and
saturations by lab work is required. That work is currently
underway and, once completed, will result in a revised prospective
resource.
Of particular interest is the pay interpreted over the Lima
prospects in the Seabee formation, despite both being intersected
in a sub optimal location.
As previously announced, gas condensate was successfully flowed
from the Middle and Lower Stellar targets using a downhole sampling
tool. The samples collected are now in the lab undergoing test
work. The initial results from this test work, including gas to oil
ratio, are expected in 2-3 weeks. More advanced testing on
geochemical markers and hydrocarbon isotopes will take a further
4-6 weeks.
Investigation is also underway in regard to several theories
regarding remaining potential for oil in the Torok, either as part
of an oil rim or potentially displaced updip by a secondary
hydrocarbon charge resultant from the unique burial history across
the Project Icewine acreage.
Additionally, sidewall cores are now undergoing analysis to
determine hydrocarbon and water saturations across the various
targets, including the HRZ shale, as well as determination of total
and effective porosity and permeability. The first of these results
will be known in 2-3 weeks, with final reports expected 3-4 weeks
later.
Operationally, demobilisation of all equipment is now
complete.
As announced in the most recent quarterly, prudent cost cutting
measures have been put in place including cuts to Board and
management salaries. These savings have resulted in greater than
A$750,000 in annual cost reductions across the Company.
Managing Director of 88 Energy, Dave Wall, stated: "Despite the
surprise in relation to the phase of hydrocarbons discovered in the
Torok Formation at this location, the Charlie-1 well has yielded
encouraging results, particularly in the Seabee. The Seabee targets
are extensive and have had excellent oil shows, including live oil
observed at the surface in both Charlie-1 and Malguk-1. The
significance of these observations in Charlie-1 will be confirmed
by lab results in the near term.
The Torok, Seabee and HRZ all remain prospective targets at
Project Icewine, albeit not without risk, and the Company continues
to progress the aggregation strategy around its Yukon Gold-1 oil
discovery. We look forward to providing additional news on all of
these projects in the coming weeks.
We are also aware of activity in areas nearby to our projects
from other Operators, which we believe has the potential to
favourably impact the value of our large acreage position. "
Reporting requirements under LR 5.30
The Charlie-1 well is located on the North Slope of Alaska, ADL
393380, where 88 Energy has a 30% working interest (increasing to
75%). The well penetrated sandstones in seven stacked targets and
shale in one target. No flow tests were undertaken; however, gas
condensate samples were retrieved to surface from the Torok
formation at 10,506' and 10,656' using a downhole sampling tool
(Ora) run during the wireline operation.
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
Hartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
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END
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