(Alliance News) - 88 Energy Ltd on Friday said a final petrophysical interpretation of the Charlie-1 appraisal well has substantially upgraded its net hydrocarbon pay.
Shares in 88 Energy were up 14% at 0.33 pence in London in morning trading.
The well, located on the North Slope of Alaska, has had its final petrophysical interpretation using laminated sand analysis. This has resulted in a significant increase in net pay, compared to the initial interpretation, of 398 feet versus 280 feet previously. The largest increase was from the Lima discoveries in the Seabee formation.
The interpretation integrates the log data as well as advances lab analysis of core taken during drilling. The increase in pay despite higher cut off value is being use to determine pay zones.
Pay zones also have a higher grade compared to their initial interpretations including lower water saturation and better average porosity.
The final petrophysical interpretation will now be integrated into revised mapping of the Seabee and Torok discoveries to determine resource estimates.
88 said it will open a data room for the next project Icewine farm-out "in the near term".
The thermal maturity of the HRZ shale at the Charlie-1 location is within the peak oil generation window, something that has also been confirmed by isotope analysis of mud gasses recovered while drilling.
Managing Director Dave Wall said: "The results from the Seabee, despite Charlie-1 not being optimally located, are outstanding. Whilst these may appear as a serendipitous by-product of the well, internal analysis prior to drilling had already significantly high graded this formation; however, it was too late to change the objectives/location of the well meaning that work remained largely on the drawing board. This final interpretation is a strong vindication of that internal effort. We are now looking forward to the conclusion of the evaluation of the Seabee oil discoveries as we integrate the petrophysics into the seismic inversion and subsequent mapping, which will ultimately yield updated volumetrics for our resources that will feed into the Icewine farm-out process.
"Good progress continues to be made at the newly acquired project Peregrine on both the farm-out and permitting/planning fronts. Additional news related to that will be provided to the market in a separate announcement in the near term."
By Anna Farley; annafarley@alliancenews.com
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88 Energy (88E)