Good Update18 Apr 2019 08:19
RNS Number : 5052W
88 Energy Limited
18 April 2019
18th April 2019
QUARTERLY REPORT AND APPENDIX 5B
Report on Activities for the Quarter ended 31 March 2019
The Directors of 88 Energy Limited ("88 Energy" or the "Company", ASX & AIM:88E) provide the following report for the quarter ended 31 March 2019.
Highlights
Project Icewine
· The Conventional farm-out campaign continued in the quarter, with the deadline for bids extended to end January due to demand from multiple parties. After consideration, a preferred bidder was selected by the Company in March 2019;
· Subject to the negotiation of terms and conditions, the Conventional portfolio farm-out deal is targeted in Q2 2019, with the intention to drill an exploration / appraisal well in 2020; and
· Unconventional portfolio evaluation work continued in Q1, with a farm-out launch planned mid 2019.
Western Blocks - Winx-1
· The Permit to Drill for the Winx-1 exploration well was approved by the Alaska Oil and Gas Conservation Commission (AOGCC) on the 16th January;
· The Winx-1 exploration well spudded on schedule on 15th February, with the well intersecting all the of the pre-drill targets safely and efficiently;
· Total Depth of 6,800' was reached on the 3rd March 2019, having intersected all targets, including the primary Nanushuk Formation Topset objective;
· Petrophysical analysis of the wireline logging program indicated low oil saturations in both the primary Nanushuk Topset objectives and the Torok objective, with testing and fluid sampling indicating that reservoir quality and fluid mobility at this location are considered insufficient to warrant production testing;
· The Winx-1 well was successfully plugged and abandoned on the 18th March,2019 (AK time);
· Both the Nordic#3 rig and associated services were fully demobilised prior to the end of the quarter; and
· Drilling operations were completed on time and without incident, and it is anticipated that well costs will be on or slightly under budget.
Yukon Acreage
· Processing of the Yukon 3D seismic is complete, with interpretation and resource evaluation currently underway on the inversion product.
Project Icewine
· Project Icewine Conventional
A fast track farm-out campaign commenced in August 2018, whilst processing of newly acquired 3D seismic (March 2018) was still underway. Processing was finalised in October 2018, including inversion, marking the first time that potential farminees could comprehensively assess the mapped conventional resource potential on the Western Play Fairway at Project Icewine. Consequently, requests were made by potential farminees for more time to evaluate the opportunity, which the Company granted.
The farm-out process has now progressed to the next stage, with a preferred bidder selected and discussions underway. The Company advises th