88 Energy Limited Operations Update (7710E)
March 03 2020 - 2:00AM
UK Regulatory
TIDM88E
RNS Number : 7710E
88 Energy Limited
02 March 2020
3(rd) March 2020
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM
88E) is pleased to provide the following update related to
operations for the currently drilling Charlie-1 appraisal well, on
the North Slope of Alaska.
Highlights
-- Charlie-1 appraisal well drilling commenced
Detail
88 Energy confirms that the Charlie-1 appraisal well commenced
drilling at 0600 on the 2(nd) March 2020, Alaska time.
For further details please see the latest corporate presentation
available on the Company website.
Managing Director of 88 Energy, Dave Wall, stated: "The
Charlie-1 well has been four years in the making for 88 Energy,
beginning in 2016 when we first acquired 2D seismic over our
Project Icewine acreage. Since that time, the Company has
reprocessed legacy 2D seismic (2017), undertaken a targeted acreage
expansion and then shot modern 3D seismic (2018) before farming
down (2019). A prospect of this calibre in a frontier region
requires significant time and effort to come to fruition and we are
optimistic that success is just around the corner."
About the Charlie-1 Appraisal Well
The Charlie-1 appraisal well has been designed as a step out
appraisal of a well drilled in 1991 by BP Exploration (Alaska) Inc
called Malguk-1. Malguk-1 encountered oil shows with elevated
resistivity and mud gas readings over multiple horizons during
drilling but was not tested due to complications towards the end of
operations, which resulted in lack of time before the close of the
winter drilling season. It was also drilled using vintage 2D
seismic, which was insufficient to adequately determine the extent
of any of the prospective targets encountered.
88 Energy subsequently undertook revised petrophysical analysis,
which identified what is interpreted as bypassed pay in the
Malguk-1 well. 88E also completed acquisition of modern 3D seismic
in 2018, in order to determine the extent of the discovered oil
accumulations. Charlie-1 will intersect seven stacked prospects,
four of which are interpreted as oil bearing in Malguk--1 and are
therefore considered appraisal targets. 88 Energy will operate
Charlie-1, via its 100% owned subsidiary Accumulate Energy Alaska,
Inc, with cost of the well to be funded by Premier Oil Plc up to
US$23m under a recent farm-out agreement. Drilling is scheduled to
commence in February 2020 with flow testing anticipated to conclude
in April 2020. The total Gross Mean Prospective Resource across the
seven stacked targets to be intersected by Charlie-1 is 1.6 billion
barrels of oil (480 million barrels net to 88E). Refer announcement
dated 23(rd) August 2019.
Cautionary Statement: The estimated quantities of petroleum that
may be potentially recovered by the application of a future
development project relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
CHARLIE-1 Prospective Oil Resource (MMBO): Post Farm-Out (Aug
TARGETS '19)
Horizon/Play Low Best High Gross Net Mean
Mean to 88E
----------------------- ----- ----- ----- ------ ---------
Indigo Discovery Schrader / Topset 225 358 543 374 112
----------------------- ----- ----- ----- ------ ---------
Charlie Prospect Schrader / Topset 126 201 304 210 63
----------------------- ----- ----- ----- ------ ---------
Lima Discovery /
Prospect (stacked) Seabee / Apron Fan 105 323 713 376 113
----------------------- ----- ----- ----- ------ ---------
Stellar Prospect
/ Discovery (stacked) Torok / Fan Channel 320 604 999 639 192
----------------------- ----- ----- ----- ------ ---------
CHARLIE-1 APPRAISAL WELL TOTAL 1,599 480
------ ---------
Graphics showing the Nordic Rig #3 on location at the Charlie
Pad and the Charlie-1: Seven Stacked Horizons can be viewed in the
pdf version of this announcement, which is available at the
following link
http://www.rns-pdf.londonstockexchange.com/rns/7710E_1-2020-3-2.pdf
Media and Investor Relations:
88 Energy Ltd
Dave Wall, Managing Director Tel: +61 8 9485 0990
Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Hartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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