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Assumptions.

If 7-10 days ended during these dates, would 88e halt program to wait for markets being open?
So, the 7 – 10-day timeline looks like this.
31st March, 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.”
Wireline logging operations at the Merlin-1 well at Project Peregrine are underway, with preliminary results expected over the weekend.
Interpretation: - prior to 31st March, Wireline logging operations commenced. How much earlier, who knows?
Let’s say Wireline logging operations started on 30th March & everything went really well, results were positive & they decided to proceed with flow test.
22/03/2021
Highlights
• Merlin-1 production hole drilling to commence imminently
22nd March : Details 88 Energy is pleased to report that the Merlin-1 surface hole was successfully drilled to 1,512ft as planned. Surface casing has now been cemented and the blow out preventer system tested.
A formation integrity test (FIT) was successfully undertaken and the rig is now drilling ahead in the production hole where the primary Nanushuk targets are located.
Planned total depth is 6,000’. Logging while drilling and mudlogging will provide initial indications as to the prospectivity of the well during this part of the operation, which is expected take three to five days.
Merlin-1 production hole drilling to commence imminently

March 22 23 24 25 26 27 three to five days
Days 1 2 3 4 5 worst case
March 28 29 30 31 April 01 02 03 five to seven days
Days 1 2 3 4 5 6 7 worst case
A sophisticated wireline logging suite will then be run, including sidewall cores and downhole sampling. Wireline logging is expected to take five to seven days.
Worst Case Timeline – 12 days 3rd April Saturday
Best Case Timeline – 8 days 30th March Tuesday
Median Case – 10 days 1st April Thursday
If Wireline logging was concluded successfully between Thursday 1st & Saturday 3rd April, the announcement could be expected late on Monday evening 5th April in the UK, prior to ASX opening for daily business Tuesday 6th April at 10:00 am.
IMO, a positive RNS will also include information that Flow Testing has commenced. Surely, they would not be waiting to commence flow test around markets opening if Wireline logging successful!
keefy

Page 2 of 2 Article Courtesy of Next Investor

Our take: “Moderate to fast” cut points to the mobility of the oil, which is positive.
88E Announcement wording: Fluorescence was also observed in the drilling mud (“pops”), accompanied by a petroliferous odour over three of the target intervals.
Our take: The “pops” are free oil floating in the mud, which can be seen fluorescing under UV light above. Intensity and colour of oil fluorescence is a useful indication of oil gravity and mobility. The colour observed points to an oil at the light end, e.g. high API.
Generally, lighter (high API) crudes are more valuable because they yield more high-value light products when run through a refinery - it’s good that observations are indicating a light API.
Hydrocarbon odour can often be the first indication of the presence of oil - given it was observed on site, this is another good sign.
Small Cap Explorers: Our Investment Strategy
Regular readers know our strategy for early-stage explorers is to:
Invest long before the drilling starts.
Patiently hold for the long term and take some profit before the results come in.
Leave a free carried holding in place to ride the result - hopefully the result is a big one.
We stuck to our original investment plan for 88E, and took some profit going into drilling results - which judging by today’s announcement are looking very promising.
This is exactly why we always retain a long-term position in our investment strategy for explorers - for when drilling results come in positive - but we also plan to take some profit in case the result isn’t good, so we can live to fight another day and invest in the next early-stage explorer that is still a long way from drilling.
What’s next for 88E?
We are very excited to see what the next 7 days brings for 88E.
Whilst 88E has not called this an ‘oil discovery’ just yet, the early results from the field are looking positive. There is further work to do, but results to date are encouraging.
Next, 88E will commence wireline logging, which will confirm whether mobile hydrocarbons are present. Reservoir quality will also be known once analysis of the wireline logging is complete.
Expect an update from 88E in the next 7-10 days on the wireline program.
End of Article.

Hope you Enjoyed the article. See next post for assumptions

keefy

Article Courtesy Next Investor Page 1 of 2
Fluorescent Smelly Blobs? What Does it All Mean?
Promising Results so Far… But there is Some More Work to Do…
Today 88 Energy (ASX: 88E) announced the interpretation of its ‘logging while drilling’ data.
The progress results to date indicate multiple potentially hydrocarbon bearing zones have been encountered whilst drilling.
They also mention “Fluorescence was observed in the drilling mud accompanied by a petroliferous odour” with the intriguing image below…
It’s too early to say with certainty, but things are looking promising for 88E’s current drill results.
We’ve invested in countless failed oil and gas exploration wells where we have lost money…
… and had a few outsized winners that have offset the losses - an exploration winner is the holy grail for small cap exploration investors.
Here is our take on what today’s announcement means and some comments on our investment strategy for small cap explorers.
Today’s 88E news - what does it mean?
88E’s announcement today points to what COULD be a new discovery, with a lot of positive characteristics observed on site so far.
Whilst we are not geologists ourselves, we will attempt to break it down as best we can, drawing on our previous investing experience.
88E Announcement wording: 88E’s primary targets were in the “Nanushuk Formation” - from drilling, this was interpreted to be ~ 500 ft thicker than that encountered in the analogue wells in the Willow Oil Field.
Our take: The Willow Oil field is the oil discovery to the north, owned by ConocoPhillips. 88E’s hypothesis going into drilling was that its drill targets would have similar characteristics to Willow.
88E has interpreted the primary target formation is 500ft thicker than what ConocoPhillips found at Willow - that's a good sign as if everything else stacks up, there is more chance of commercial oil being extracted.
88E Announcement wording: Oil shows were recorded over multiple intervals in the Nanushuk formation while drilling, including the primary targets.
Our take: Drill cuttings are broken bits of solid material removed from a drill hole, and brought to the surface in the drilling mud.
Evaluation of oil in the drill cuttings (and drilling fluid) begins with inspection of samples under microscope and under UV light.
This is what 88E has done, with today's announcement reporting the findings. You can see the samples below - plenty of fluorescence observed.
It looks like we definitely have oil here, and the fact 88E has said its over multiple intervals including in the primary targets is a good sign.
88E Announcement: Fluorescence ranged from relatively weak to moderate “dry” fluorescence with slow to moderate sometimes fast streaming cut when exposed to solvent.
Our take: “Moderate to fast” cut points to the mobility of the oil, which is positive.
keefy

Hi All,
just a little something to help you stay positive, before the Easter break.

What we know that should convince us even more

Is the strategically situated, Umiat Oil Field, Merlin’s key?

Multiple wells positive for liquids and natural gas

Umiat is a historic oil discovery, made in 1945 in SHALLOW Brookian (NANUSHUK) sandstones, 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. The Umiat-23H well was FLOW TESTED at a sustained rate of 200 barrels per day WITH NO WATER in 2014 by Linc Energy (max rate 800 barrels of oil per day).

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.

Umiat is immediately adjacent to the southern boundary of Project Peregrine.

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. (WILLOW, COP)

https://dog.dnr.alaska.gov/Documents/ResourceEvaluation/20180521_DiscovThinking_Decker.pdf

DW’s remarks: - 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.
It is important to note in terms of 88E’s broader strategy in the region that one of the ROUTES for ACCESS to infrastructure for potential Umiat developments runs DIRECTLY through 88 Energy’s Project ICEWINE leasehold, where there are substantial independently estimated resources of OIL and GAS.

Commenting on the acquisition, as well as discussing potential scenarios, 88E managing director Dave Wall said, "Our operational activity at Project Peregrine has provided 88E with a unique position from which to acquire the Umiat Oil Field at an opportunistic price point. 88 Energy will now undertake a full field review to determine at what oil price Umiat may be commercial as a standalone development. The asset has potential to add significant value for shareholders, possibly as a standalone development, but certainly in the event that there is a material DISCOVERY in the ONGOING Project Peregrine drilling program.
Opportunities exist here at Merlin for GAS & OIL discoveries which are already proven at Umiat.
Nothing is certain in this life but after 5+ years of buying & holding this baby, IMHO, we haven't been closer to the real thing. Roll on Tuesday.
Stay Safe & Well & keep washing your hands.

Happy Easter

keefy

Brom 13:47
I'm thinking any future news on HRZ, will be dependant upon imminent updates, expected in the month of June, if everything has progressed according to plan.

From his ANN 20th April we read;
Over 280’ feet of net pay is interpreted over the Seabee, Torok and Kuparuk formations, which compares favourably to pre-drill expectations; however, confirmation of rock properties and saturations by lab work is required. That work is currently underway and, once completed, will result in a revised prospective resource. Of particular interest is the pay interpreted over the Lima prospects in the Seabee formation, despite both being intersected in a sub optimal location. As previously announced, gas condensate was successfully flowed from the Middle and Lower Stellar targets using a downhole sampling tool.
The samples collected are now in the lab undergoing test work. The initial results from this test work, including gas to oil ratio, are expected in 2-3 weeks. More advanced testing on geochemical markers and hydrocarbon isotopes will take a further 4-6 weeks.
Investigation is also underway in regard to several theories regarding remaining potential for oil in the Torok, either as part of an oil rim or potentially displaced updip by a secondary hydrocarbon charge resultant from the unique burial history across the Project Icewine acreage. Additionally, sidewall cores are now undergoing analysis to determine hydrocarbon and water saturations across the various targets, including the HRZ shale, as well as determination of total and effective porosity and permeability.
The first of these results will be known in 2-3 weeks, with final reports expected 3-4 weeks later.

So, 4 weeks after April 20th ANN, we received the following;
21st May Highlights
• Average API gravity of liquid hydrocarbon in the Torok Fm confirmed as ~50 degrees
• Compelling indications of oil updip from Charlie-1 in Torok and possible intraformational seal identified, supporting geological model for alternate phase
• Oil interpreted in the Seabee at Malguk-1/Charlie-1 as well as updip at Heavenly-1
• Additional results from laboratory testing expected over coming weeks

I'm not altogether sure that there was as much information in 21st May ANN as we could have expected in the initial 2 tranches of data that were due for broadcast in 2-3 weeks from April 20th.
Certainly nothing HRZ related.

We Wait & Hope, Optimistically of course.

keefy

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