Merlin-2 reaches total depth. Wireline testing commenced.
Over the weekend we saw this video posted on the 88E Youtube channel which shows that the wireline testing program has commenced at the Merlin-2 appraisal well.
Click on the image below to see the video:
In our last note right before the drilling program began, we set some expectations for the drilling program for what we thought a great result from the drilling program would look like.
Below are those expectations - remember these are our expectations as investors - not 88E’s expectations:
- Net oil paying zones (thickness) across the three reservoirs >41 feet (Merlin-1 result was 41 feet).
- Drilling program is successful enough to warrant production testing.
- Production tests confirm light oil and high flow rates.
So far 88E has confirmed drilling has intersected reservoirs thicker than the Merlin-1 well, and have observed oil shows (which we covered in a previous QuickTake).
The wireline program is designed to confirm reservoir quality and to establish if mobile hydrocarbons are present which 88E have said should take ~7-10 days to complete. If successful, 88E can then move into production testing the well in order to see flow rates from the well.
What’s Next: we will be watching to see whether or not the results from the wireline program deem the well suitable for production testing.
To see why we continue to hold 88E, the key risks to our investment and what we expect the company to achieve in 2022 check out our 2022 88E Investment Memo here.
