88 Energy Limited Operations Update (0599V)
April 12 2021 - 2:00AM
UK Regulatory
TIDM88E
RNS Number : 0599V
88 Energy Limited
12 April 2021
12 April 2021
This announcement contains inside information
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E,
AIM:88E, OTC:EEENF) is pleased to provide the following update
related to its operations in the NPR-A region of the North Slope of
Alaska.
Highlights
-- Sidewall cores in Merlin-1 confirm presence of oil previously observed in cuttings
Details
The sidewall cores taken in the Merlin-1 well were analysed at
surface prior to being sent to the laboratory for further testing.
Photos of whole core and small chips from the core were taken in
white and ultraviolet light to determine fluorescence. The rock
chips were also exposed to solvent to observe any "cut".
Fluorescence and cut are indicators of the presence of oil.
Fluorescence and cut were observed over several horizons,
confirming the observations previously reported based on cuttings
(see release dated 29(th) March 2021). The cores have now been sent
to the laboratory for further analysis.
A schedule of expected results will be released in the coming
days once timings of the various analyses are confirmed.
Managing Director, David Wall, commented: "The sidewall core
photos provide further evidence of the presence of oil over
multiple horizons in the Merlin-1 well. Whilst these results are
confirmatory of the cuttings data and were expected, it is
reassuring to see."
Pursuant to the requirements of the ASX Listing Rules Chapter 5
and the AIM Rules for Companies, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 35
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified
Geologist/Geophysicist who has sufficient experience that is
relevant to the style and nature of the oil prospects under
consideration and to the activities discussed in this document. Dr
Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and
reserve estimates to be fairly represented and consents to its
release in the form and context in which it appears. His academic
qualifications and industry memberships appear on the Company's
website and both comply with the criteria for "Competence" under
clause 3.1 of the Valmin Code 2015. Terminology and standards
adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this
document.
About Project Peregrine
Project Peregrine is located in the NPR-A region of the North
Slope of Alaska and encompasses 195,000 contiguous acres. It is
situated on trend to recent discoveries in a newly successful play
type in topset sands in the Nanushuk formation. 88 Energy has a
100% working interest in the project that will reduce to 50% post
the completion of funding as part of a recent farm-in, whereby 88E
is carried on the first US$10m (of an initially estimated US$12.6m
total cost) for the Merlin-1 well.
Project Peregrine and Recent Nanushuk Discoveries
The Merlin-1 well was spudded in March 2021 and is targeting 645
million barrels of gross mean prospective resource(#) . Wireline
logging at Merlin-1 is now complete and interpretation of results
is underway. A second well, Harrier-1, is planned to be drilled in
2022 and is targeting gross mean prospective resource of 417
million barrels(#) .
Independent Resource Assessment(#)
Project Peregrine: Alaska Unrisked Net Entitlement to 88E Prospective
North Slope Oil Resources (MMstb)
Prospectus (Probabilistic Low Best High Mean COS
Calculations) (1U) (2U) (3U)
---------- ---------- --------- --------- ------
Merlin (Nanushuk) 41 270 1,463 645 37%
---------- ---------- --------- --------- ------
Harrier (Nanushuk) 48 207 940 417 24%
---------- ---------- --------- --------- ------
Harrier Deep (Torok) 42 267 1,336 574 20%
---------- ---------- --------- --------- ------
Prospects Total 1,636
---------- ---------- --------- --------- ------
(#) Please refer to release dated 23 February 2021 for full
details with respect to the Prospective Resource estimate,
associated risking and applicable Cautionary Statement.
Each of the Merlin and Harrier prospects is located on trend to
an existing discovery, in the same play type (Nanushuk topsets).
This has de-risked the prospects considerably and resulted in a
relatively high independently estimated geologic chance of
success.
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.
The below graphics can be found in the pdf version of this
announcement available from the Company's website;
- Graphic 1: Fluorescence of whole sidewall cores
- Graphic 2: Fluorescence, cut and residual cut of rock chips taken from sidewall cores
- Graphic 3: Project Peregrine and Recent Nanushuk Discoveries
- Graphic 4: Merlin-1 - on trend to large Willow oil field
Media and Investor Relations:
88 Energy Ltd Tel: +61 8 9485 0990
Dave Wall, Managing Director Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
EurozHartleys Ltd Tel: + 61 8 9268 2829
Dale Bryan
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
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