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(Sharecast News) - Alaska-focussed 88 Energy updated the market on operations on the state's North Slope on Tuesday, reporting that sidewall cores, mud gas and fluid samples taken from Merlin-1 were now being tested to determine oil saturation, oil typing, PVT characteristics, porosity, permeability and rock mechanics.
The AIM-traded firm said cuttings would also go through a volatiles analysis service to assist with the interpretation of the results from the well.
It said core photography and geological descriptions was expected to take up to three weeks, with the isotope analysis of mud gas to take up to four weeks and the volatiles analysis service on cuttings to also last up to four weeks.
Results from the centrifugal spin out of oil samples from select cores would take up to four weeks, with routine core analysis including saturations from Dean Stark to take up to eight weeks, and fluid analysis with oil geochemistry set down for up to 10 weeks.
The results would then be integrated into a final petrophysical interpretation.
During the drilling of Merlin-1, 88 Energy said several prospective zones were encountered that were previously unmapped.
Those zones exhibited good shows with potential for pay, subject to the testing results.
An initial mapping exercise indicated that the zones could be of similar magnitude in terms of volumetric range as the originally-targeted primary zones, with further work required to confirm that, though the board described the early work as "encouraging".
At Project Icewine, 88 Energy said it had been closely monitoring activity near the northern border of its acreage, where a flow of light oil from the Kuparuk was reported from the Talitha-A well.
Additional insights into the wettability of the Kuparuk formation were also highlighted as part of the Talitha-A results, which the firm said could have positive ramifications for its previous interpretation of the horizon.
All three wells drilled by 88 Energy at Icewine encountered good quality reservoirs in the Kuparuk formation, with indications of hydrocarbons.
Those had previously been interpreted as likely gas condensate or residual oil, and no mapped targets had been identified, as that was not a play that the company had been pursuing.
The results at Talitha-A were said to be "highly encouraging" in a regional context for the Kuparuk, including across Project Icewine, with the firm's internal geoscience team now reassessing the potential across its acreage.
It said it was also evident that several of the other prospective horizons encountered in Talitha-A, where pay was interpreted by Pantheon, extended into Icewine acreage.
"The oil shows and other encouragement seen in the Merlin-1 well bodes well for the potential at Project Peregrine and we look forward to providing the results from the laboratory analysis over the coming weeks," said managing director David Wall.
"It is also highly positive to see pay zones and a flow rate of light oil achieved from zones on adjacent acreage that are also prospective at Project Icewine, where an internal review has commenced to determine the significance of the neighbouring results."
At 1415 BST, shares in 88 Energy were up 16.31% at 1.41p.
9 Aug 2023 11:37
IN BRIEF: 88 Energy announces offer to raise GBP6.3 million
88 Energy Ltd - Alaska-focused oil explorer - Posts offer to raise GBP6.3 million at 0.0031 pence per share. After this the company will have issued around 2.01 billion share, and will have total shares on issue of 22.12 billion shares. 88 Energy says that it will apply the funds raised from the offer it fund ongoing activity across its portfolio of oil and gas exploration assets, focusing on the North Slope of Alaska and onshore Texas. 88 Energy announced this plan on July 31, saying at the time that net cash it received will be used for flow testing of the Hickory-1 well at Project Phoenix in the North Slope of Alaska and on development wells and work-overs at Project Longhorn in Texas, alongside other testing and activities.
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