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RNS Number : 0951U
88 Energy Limited
31 March 2021
31st March 2021
This announcement contains inside information
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM:88E, OTC:EEENF) is pleased to provide the following update related to its operations in the NPR-A region of the North Slope of Alaska.
Highlights
· Umiat Oil Field acquisition conditions satisfied
· Wireline logging continues at Merlin-1
Details
The final condition related to the acquisition of the Umiat Oil Field ("Umiat") is now complete with cement work associated with plugging and abandoning of two historical wells at the field now executed. Remedial site work will be finalised in the near term.
Umiat is an historic oil discovery, made in 1945 in shallow Brookian (Nanushuk) sandstones, located immediately adjacent to the southern boundary of Project Peregrine.
The field is covered by two leases comprising 17,633 acres, which are in a unit that was formed in September 2019 with an initial 10 year term. The current conditions of the unit stipulate a well commitment (exploration or appraisal) by 31st August 2022.
Umiat was discovered in the mid-1940s with 11 appraisal wells drilled by 1953, several of which were tested. Umiat-5 flowed 268 barrels per day on a 3 month test and Umiat-8 had a peak flow rate of 5.9mmcf/d of natural gas during a 4 day test. Little work was done until 2013/2014 when Linc Energy drilled two wells, Umiat-18 and Umiat-23H. Umiat-23H was tested with a maximum flow rate of 800 barrels per day and sustained flow of 200 barrels per day. Refer to ASX announcement dated 11 January 2021 for further details.
Wireline logging operations at the Merlin-1 well at Project Peregrine are underway, with preliminary results expected over the weekend.
Managing Director, Dave Wall, commented: "The acquisition of the proven oil field at Umiat is a significant milestone for the Company and its shareholders, particularly in the context of any discovery made at Project Peregrine, where wireline logging is currently underway."
About Project Peregrine - Logging Underway
Project Peregrine is located in the NPR-A region of the North Slope of Alaska and encompasses ~195,000 contiguous acres. It 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 initially estimated US$12.6m total cost) for the Merlin-1 well.
The Merlin-1 well is spud in March 2021 and is targeting 645 million barrels of gross mean prospective resource#. A second well, Harrier-1, is planned to be drilled in 2022 and is targeting gross mean prospective resource of 417 million barrels#.
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