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88 Energy shares zoom on the back of upbeat results from exploration activities at Merlin-1

Source:Kodda, Shutterstock

Summary

  • 88 Energy witnessed an uptick in its share price on 29 March 2021 after the Company announced an update about the progressing work.
  • 88E has received encouraging results from the interpretation of logging while drilling data indicated several potentially hydrocarbon-bearing zones.
  • The Company plans to commence wireline logging to commence shortly to confirm the presence of mobile hydrocarbons.

The shares of 88 Energy Limited (ASX:88E) were noted trading at $0.035, up by 12.903% after the Company announced an update regarding its ongoing work in the NPR-A region of the North Slope of Alaska on 29 March 2021.  

The Company’s efforts have found multiple potentially hydrocarbon-bearing zones in the Nanushuk Formation encountered through interpretation of logging while drilling the Merlin-1 well.  

The Company encountered that Nanushuk Formation, which contains the primary targets for the Merlin-1 well, is approximately 600’ low to prognosis. Moreover, it is interpreted to be around 500’ thicker than the one witnessed in the wells drilled into the Willow Oil Field to the north of the Project Peregrine acreage.

PREVIOUS UPDATE: 88 Energy (ASX:88E) Completes Initial 1,512ft drilling at Merlin-1

The Company is encouraged by the gamma log results that indicate the presence of more sand packages than those in the Analogue Wells. Additionally, it also demonstrates that there are mostly cleaner sand packages in Merlin-1, while the reservoir quality is expected to be established upon completing of the wireline logging analysis.

Multiple intervals in the Nanushuk, including the primary targets, recorded oil shows while drilling Merlin-1. Moreover, 88E recorded fluorescence in the range of relatively weak to moderate ‘dry’ fluorescence with slow to moderate at times fast streaming cut once subjected to solvent.

Fluorescence and Cut Observed over Multiple Intervals (Source: Company Announcement 29 March 2021)

RELATED UPDATE: 88 Energy (ASX:88E) Shares Surge After Securing Permit to Drill Merlin-1, Spud Expected in Current Month

88E also recorded mud gas peaks, which were generally different from the scale of the total gas growth beyond the background, as seen in the Analogue Wells. However, one of the prospective horizons in Merlin-1 did have significantly higher total gas, like the one in the Analogue Wells.

Over three of the target intervals, 88E observed fluorescence in the drilling mud complemented by a petroliferous odour, out of which one of the intervals is interpreted to be a portion of a, possibly distinct, sand package that appears in the Harrier prospect as well.

The Company believes that the results are encouraging and looks forward to running the wireline program over the next week to determine the presence of mobile hydrocarbons after a compulsory test of the Blow Out Preventer.

DID YOU READ: Milestone Reached! 88 Energy (ASX:88E) Begins Much Awaited Drilling at Merlin-1 Well

Source: Company Announcement 29 March 2021

Moreover, 88E believes that it shall be difficult to describe if a discovery has been made until the wireline's completion and interpretation.

IMPORTANT UPDATE: 88 Energy (ASX:88E) Continues Mobilisation of Drill Rig Despite Weather Hitches

88E stock clocked at AUD 0.038, up by 8.57% (AEDT: 12:22 pm) on 30 March 2021.

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