88E set to drill 645 million barrel oil target
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88 Energy (ASX:88E) is set to begin drilling its flagship Merlin-1 oil well, part of its Project Peregrine located in the highly prolific North Slope of Alaska on trend to a large discovery by oil super major ConocoPhillips.
The deepest target sits on the same shelf break as ConocoPhilips’s recent Harpoon discovery.
The shallowest target is sitting on a shelf break which has been proven as a hydrocarbon bearing and commercial petroleum system - the 750 million barrel Willow oil field...
88E’s Alaskan oil well has already been drilled to 1,500 ft depth and now a production hole is travelling down to the planned total depth of 6,000 ft.
Three stacked targets, each comprising hundreds of millions of barrels, are being drill tested this week.
Logging while drilling and mud logging will provide early indications as to the prospectivity of the well in approximately 3 to 5 days.
After that, over another 5 to 7 days, wireline logging will be run, including sidewalls and downhole sampling.
Encouraging results from the wireline logging, would see 88E complete the well with casing and a flow test will be conducted.
Project Peregrine
Project Peregrine is located in the NPR-A region of the North Slope of Alaska and encompasses ~195,000 contiguous acres.
The project 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 originally estimated US$12.6m total cost) for the Merlin-1 well.
88E spudded its Merlin -1 well on 10 March 2021 and is targeting 645 million barrels of gross mean prospective resource.
88E’s project has a 1.6 billion barrel gross mean unrisked recoverable prospective resource and this well is the first to drill test this billion barrel plus gross prospective resource.
Contractor endorsement
A major contractor working on 88E’s drilling is confident of a result and will take its $6.84M fee in 88E stock at the currently higher price of 1.8c...
Under the agreement ELKO International LLC will be issued 360 million shares at $0.018, which is a 225% premium to the placement undertaken on 12 February 2021. The are no fees associated with the placement.
Managing Director, Dave Wall, said of ELKO’s commitment, “The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company’s share of the recently announced cost overruns.
“We wish all our shareholders good fortune over the coming days.”
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