Confidence Builder Part 111 Apr 2021 15:23
Merlin: The Details & Main Points from Petroleum News Article as linked earlier
Dr. Paul Craig, a veteran oil and gas investor in Alaska, told Petroleum News (PN) April 6, what other experienced North Slope operatives were only willing to say, off the record:
Although 88 Energy stock got beaten to a pulp on the news about the Merlin 1 well, I like the results.
But the market doesn’t read between the lines. Short-term investors see ‘plug and abandon’ and assume it’s a dry hole with no commercial potential, Craig said.
Kevin Frank, a geologist and section chief of the state, Division of Oil and Gas (DOG) resource evaluation team, agreed.
In an April 7 interview with PN, Frank described the results that Erik Opstad and his team at the well site did get as Encouraging
Frank’s reaction was similar to what ConocoPhillips said after it drilled its recent Harpoon well. It was Plugged and Abandoned (P&A’d) and declared a dry hole, but the company (CP) has no intention of abandoning the promising prospect and plans to go back in, to drill Harpoon in the future.
I think they (88 Energy) have done a good job, Frank said, following a lengthy meeting with members of the Division of Oil and Gas (DOG) resource evaluation team.
They’ve collected well information from targets in the Nanushuk, which is the hottest oil play on the North Slope because of Pikka, Willow and other recent substantial discoveries.
They have reported shows, as described in their April 6 operations update, including evidence of oil in the cuttings that were brought to the surface while drilling.
One of the characteristics of the oil in the cuttings is that oil fluoresces under UV light.
They Saw This, Frank said.
88 Energy conducted logging while drilling, or LWD and were encouraged by what they saw in multiple intervals. Additional data was collected via wireline run, collecting a triple combo logging suite, with the addition of a nuclear magnetic resonance, NMR, tool, he said.
The triple combo measures “gamma-ray, resistivity and density of the formation while the NMR provides an Estimate of the MOBILITY of the FLUID present. In aggregate this data can be interpreted to gain insight into the clay/sand content, fluid type, porosity of the rock and MOBILITY of the Fluid in the rock, Frank said.
That was 88 Energy’s First run on wireline.
The Second run, he said, “sounds like a downhole sampler to take fluid samples.
After setting the tool, fluid is run through an optical fingerprint sensor to evaluate the fluid prior to opening the sample chamber. This allows fluids that were introduced by the drilling process to clean up prior to taking a sample that is more representative of the Reservoir Fluid,” he said. “
They had troubles with the tool because of a power problem and so did not get a fluid sample, Frank said and so did 88 Energy’s April 6 update.
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