Next Investors logo grey

88E set to drill 645 million barrel oil target


Published 22-MAR-2021 11:06 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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...

Next Investors Image

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.

Next Investors Image

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.”

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.