- 88 Energy owns four highly prospective land assets, Project Icewine, Yukon Leases, Project Peregrine and the Umiat oil field.
- Drilling at the Company’s Merlin-2 appraisal well is scheduled to begin in February 2022.
- 88E is engaged in internal review to reassess the potential across its Project Icewine acreage.
- At Yukon Leases, the Company is progressing discussions and due diligence for joint development area.
Alaska-focused oil exploration and appraisal company 88 Energy Limited (ASX:88E) has approximately 440,000 net acres on the Alaskan Central North Slope and NPR-A regions. The Company’s diversified portfolio includes four highly prospective project areas, namely - Project Icewine, Yukon Leases, Project Peregrine and the Umiat oil field.
88E aims to establish a successful exploration and production business, which delivers significant returns to its shareholders. Besides, the Company envisions to significantly contribute to stakeholders and the development of the regions of its operations.
During 2021, the Company made strategic progress with its Alaskan oil and gas assets. Let us look at the Company’s latest developments that add lustre to its 2022 outlook.
Merlin-2 appraisal well on track for Feb spud
88E is on track to spud the Merlin-2 appraisal well in February this year. The well is considered to be one of the largest exploration/appraisal opportunities being drilled in 2022 globally.
The proposed well is targeting 652 million barrels of oil across multiple targets encountered in the successful Merlin-1 well, which indicated the presence of oil in these multiple stacked targets in the Brookian Nanushuk Formation.
88E has also identified several appraisal drilling locations close to the Merlin-1 well, and the Merlin-2 well is autonomously evaluated to have a 56% geological chance of success.
RELATED ARTICLE: 88 Energy (ASX:88E) finalises Merlin-2 appraisal well location
88E remains optimistic and anticipates encountering thicker reservoir sections and higher permeability/porosity sands at the location.
In the last quarter of 2021, 88E executed a rig contract with Doyon Drilling Inc to utilise the Arctic Fox rig for drilling of the Merlin-2 appraisal well at the Project Peregrine.
Source: 88E Announcement 26/10/21
RELATED ARTICLE: What made 88 Energy stock swell up by ~250% over the past year?
Good quality reservoir at Project Icewine
All three wells drilled by 88 Energy at the Project Icewine have encountered good quality reservoir in the Kuparuk formation.
Moreover, what further boosts 88 Energy’s confidence is the fact that Pantheon Resources has drilled the Talitha-A well, which sits proximal to the northern border of the Company’s Project Icewine acreage. 88E has been closely monitoring the activities of Pantheon Resources, observing further key insight into the wettability of the Kuparuk formation demonstrated from the results of the Talitha-A program.
88E believes that these insights can have favourable consequences for the same formation in the Company’s Icewine acreage.
Source: 88E Announcement 15/10/21
Advancing discussions at Yukon Leases
The Yukon Leases area of the Company is believed to be highly prospective with potential for further exploration. The Yukon Leases host the Cascade Prospect, which was upgraded from a lead to a drillable prospect after analysis.
Moreover, 88E has advanced discussions with proximal lease owners in recent months in relation to a joint development area.
Currently, the Company is engaged in planning future exploration drilling over the Yukon Leases, which also remain a subject to farm-out and other discussions.
88E enjoys a firm financial footing with AU$23.96 million raised in September last year through a placement. The fund can be used to finance the proposed Merlin-2 appraisal well. In addition, the proceeds will also help in meeting broader acreage lease payments and working capital requirements of the Company.
The Company is also on the lookout for the identification and execution of prospective new project opportunities.
88E shares traded at AU$0.049 on 3 February 2022.