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Oil and gas explorer 88 Energy Limited commenced drilling of exploration well as per the scheduled spud date on 15 February 2019. This translates the commencement of drilling activity at Winx-1 exploration well located near the Horseshoe discovery on the North Slope of Alaska.
In todayâs announcement to the Australian Securities Exchange, 88 Energy Limited (ASX:88E) told that well has been drilled to 600â before pulling out of the hole to pick up the smart bottom hole assembly, with logging while drilling tools attached. And as at 17 February 2019, Nordic Rig#3 was drilling ahead at 880. Before the commencement of drilling, the company constructed ~11-mile ice road to locate Nordic Rig#3.
88 Energyâs forward plan is to deepen the hole to approximately 2,500â before setting surface casing. The Winx is a conventional oil prospect in the Nanushuk play fairway, adjacent to the Horseshoe 1/1A oil discovery. Its location demonstrates the extension of Nanushuk to the south and the Pikka Unit to the North. Moreover, gross mean unrisked prospective resource of Winx well stands at 400 million barrels.
The drilling work comes after the mandatory permits were secured by the Drilling Manager, 88 Energy, during the December 2018 quarter which was subsequently submitted to the Alaska Oil and Gas Conservation Commission (AOGCC) on schedule.
As per the recently released December quarter report, HRZ shale at Project Icewine JV remains the companyâs focus to complete the ongoing studies and analysis at year end by 1H 2019 ahead of commencing an unconventional farm-out campaign.
Whereas, in the last quarter, the company engaged a GE Company, Baker Hughes, to conduct a holistic review of ground-floor data and analysis relating to the HRZ shale. Baker Hughes completed the initial review following pre-drill interpretation completed by Burgundy Xploration and confirmed that it was in line with the prior work done.
The company also joined hands with U.S. Geological Survey (USGS) to gain access to specialised equipment for testing. The company believes that this equipment would enable the company to achieve a better definition of gas biomarkers and quantitative oil, age dating, kerogen type, as well as variability in source rock geochemistry.
Moreover, after the end of 2018 a wholly owned subsidiary of 88 Energy, Regenerate Alaska Inc, secured additional ~1,920 gross acres in the State of Alaska on placing the highest bid in the December 2018 Licensing Round. However, the formal award is reportedly expected to be received in mid-2019.
On the corporate front, the company raised $13.6 million through the 1 for 7 non-renounceable rights issue along with the placement of shortfall shares.
88E traded flat on 18 February 2019 with a daily volume change of 9,178,772. The stock last traded at $0.019 with a market capitalisation of $120.3 million.
Over the past 12 months, the stock has fallen by 38.30% including a negative price change of 13.06%. Over the past 12 months, the stock has fallen by 38.30%, including a negative price change of 13.06% over last 6 months.
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