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88 Energy (ASX:88E) finalises Merlin-2 appraisal well location

Highlights

  • 88E has selected the Merlin-2 appraisal well location for drilling in February next year.  
  • The well will target the previously encountered highly prospective targets in the Merlin-1 well.
  • The Company anticipates the Merlin-2 well to showcase thicker reservoir sections and higher permeability/porosity sands.
  • 88E remains on track for the scheduled spud of Merlin-2, with permitting and planning at an advanced stage.

In a significant development, 88 Energy Limited (ASX:88E) recently selected the Merlin-2 well location, which is due for drilling in February 2022 to a total depth of 8,000 feet. The well is designed to target 652 million barrels of oil in the highly prospective targets - N18, N19 and N20, which were encountered during the Merlin-1 well drilling program.

The wells are part of the Company’s Project Peregrine, which sits within the NPR-A region of the North Slope of Alaska.

The Company has executed a rig contract with Doyon Drilling Inc for using the Arctic Fox rig to drill the Merlin-2 appraisal well.

RELATED ARTICLE: What made 88 Energy stock swell up by ~250% over the past year?  

Prospect location

Prospect location (Source: 88E Announcement 24/11/21)

88E selects site to drill Merlin-2 well  

The Company selected the Merlin-2 well location from the three initially permitted locations for the appraisal program. The well location is to the east and downdip of the successful Merlin-1 well. It is anticipated to present higher permeability/porosity sands and thicker reservoir sections.

The N18, N19 and N20 targets in the successful Merlin-1 well have demonstrated the presence of oil in the multiple stacked sequences in the Brookian Nanushuk Formation.

RELATED ARTICLE: 88 Energy (ASX:88E) bolsters financial stance to expedite activities across exploration assets

 Merlin-1 and Merlin-2 well locations

Merlin-1 and Merlin-2 well locations (Source: 88E Announcement 24/11/21)

RELATED ARTICLE: 88 Energy (ASX:88E) boasts significant progress during first half of 2021

88E on track with scheduled spud

88E is likely to drill the remaining two locations permitted along with the permitted Harrier-1 location at a later stage. These locations would be drilled as part of an extended drilling program to determine the complete potential of the Project Peregrine acreage.

For the Merlin-2 well, the Company has designed a production testing program, which will stand as a reserve during early wellsite operations. This program is conditional upon the wireline program results, especially the MDT results, as well as government approvals.

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Moreover, the operational, funding and weather window considerations would further determine the program and length of the test.

88E remains on track with permitting and planning for the Merlin-2 well.  

Bottom Line

88E has been aggressively moving ahead with preparations to drill the Merlin-2 appraisal well at the Project Peregrine. As permitting and planning of Merlin-2 is at an advanced stage, the Company looks forward to kicking off drilling as per the schedule.

RELATED ARTICLE: 88 Energy (ASX:88E) executes rig contract for Merlin-2 appraisal well in Feb 2022

88E shares were trading at AU$0.026 in the early hours of 29 November 2021.

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