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- 88 Energy Limited has successfully drilled the Merlin-1 surface hole to 1,512ft as planned and has also completed related activities.
- 88E has also inked a share subscription agreement with one of the major contractors for the operation to issue 360 million shares at $0.018.
- The Company looks forward to imminently commencing Merlin-1 production hole drilling as well as complete the other planned activities at the project.
88 Energy Limited (ASX:88E) has continued the progress for drilling at the Merlin-1 Well and has successfully drilled the Merlin-1 surface hole to 1,512ft as scheduled. Furthermore, the Company has also completed surface casing cementing, and testing of the blow out preventer system has also been completed.
88E has also successfully carried out a formation integrity test (FIT) while the rig is presently continuing to drill ahead in the production hole where the principal Nanushuk targets are situated to a proposed overall depth of 6,000’.
The Company anticipates logging while drilling and mudlogging to offer early signals regarding the well's prospective nature throughout this portion of the operation, which is anticipated to continue for around 3-5 days.
Subsequently, the Company has planned to run a sophisticated wireline logging suite, which is anticipated to continue for around 5-7 days and comprises sidewall cores and downhole sampling.
Merlin-1 – on trend to large Willow oil field (Source: Company Announcement 22 March 2021)
The Company further looks forward to completing the well with casing and executing a flow test, subject to the receipt of encouraging results from the wireline logging.
88E has also inked a share subscription agreement with ELKO International LLC, under which the Company shall issue 360 million shares at $0.018. This price is a 225% premium to the placement executed on 12 February 2021, and the placement comprises no fees.
ELKO is one of the major contractors for the operation, while the Company shall have 12,521,590,431 ordinary shares on issue.
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88E shares closed at AUD 0.023, up by 35.294%, with around 206.74 million worth of market capitalisation.