RE: This time next year .........15 Oct 2019 11:09
88E to Drill One of The Biggest Oil Wells in The World in 2020
WRITTEN BY: MEAGAN EVANS
PUBLISHED: 15-10-2019
88 Energy (ASX:88E | AIM: 88E) is gearing up to drill one of the biggest oil wells in the world in 2020.
In one drilling event in February 2020, no less than seven stacked targets will be pierced by the Charlie-1 well, and a total of 1.6 billion barrels of potential will be tested – 480 million barrels net to 88E.
Drilling is expected to take just 30 days. Given conventional targets are being tested here, results will be almost immediate.
This is not a pure exploration drill – it's appraisal drilling for the most part.
In the vicinity of Charlie-1’s location, BP Exploration drilled the Malguk-1 well in 1991 which encountered oil shows over multiple horizons during drilling. However, these shows were not properly tested due to complications at the end of drilling operations.
Fast forward 30 years, with significant leaps in technology along the way, and 88E has undertaken a revised petrophysical analysis, which has identified bypassed pay in the Malguk-1 well. 88E also acquired modern 3D seismic to determine the extent of the discovered oil accumulations.
Consequently, four out of the seven stacked prospects Charlie-1 will intersect have been interpreted as oil bearing in Malguk-1 and are considered appraisal targets.
So while still risky, 88E’s upcoming well has a much lower relative risk compared to previous wells the company has drilled in the past.
And if you have been following 88E for some time you would recall the very large share price uplifts for those wells at drilling time...
88 Energy
ASX:88E, AIM:88E
Share Price: A$0.012 (ASX) | £0.69 (LON)
Market Capitalisation: A$82.5 million
Here’s why I like 88 Energy:
88 Energy (ASX:88E, AIM:88E) is currently in preparations to drill the Charlie-1 (Malguk-1 appraisal) well at its conventional Icewine Project in the proven Alaska North Slope basin — what will be a pivotal moment for the company as it seeks to unlock the large potential of the conventional plays on the acreage.
As mentioned, 88E will be fully carried with Charlie-1 funded up to US$23M by Premier Oil Plc, a highly credentialed partner that has recently farmed in.
The background leading to today’s position can be found in my last article on August 23, 88E Partner with $1B Premier Oil in North Slope Farmout: Drilling Q1 2020.
Further explanation has been provided on the Vox Markets Podcast, where Dave Wall, managing director of 88 Energy, answered some key shareholder questions...
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