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19 Mar 2020 07:00
19th March 2020
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM 88E) is pleased to provide the following update related to operations for the Charlie-1 appraisal well, which is currently being drilled on the North Slope of Alaska.
Highlights
· Drilling of production hole to commence imminently
Detail
After a minor delay, mainly due to weather, surface casing has now been set and cemented. A mandatory test of the Blow Out Preventer system was also completed successfully, which will now be followed by a Formation Integrity Test. Drilling will then proceed in the 8.5" production hole.
The results from the Logging While Drilling phase of the program are expected to be announced after Total Depth has been reached and initial analyses have been completed, scheduled for early April.
The Company can confirm that COVID-19 has had no impact on the program to date and appropriate measures have been put in place to ensure that any potential impacts are being proactively addressed.
About the Charlie-1 Appraisal Well
The Charlie-1 appraisal well has been designed as a step out appraisal of a well drilled in 1991 by BP Exploration (Alaska) Inc called Malguk-1. Malguk-1 encountered oil shows with elevated resistivity and mud gas readings over multiple horizons during drilling but was not tested due to complications towards the end of operations, which resulted in lack of time before the close of the winter drilling season. It was also drilled using vintage 2D seismic, which was insufficient to adequately determine the extent of any of the prospective targets encountered.
88 Energy subsequently undertook revised petrophysical analysis, which identified what is interpreted as bypassed pay in the Malguk-1 well. 88E also completed acquisition of modern 3D seismic in 2018, in order to determine the extent of the discovered oil accumulations. Charlie-1 will intersect seven stacked prospects, four of which are interpreted as oil bearing in Malguk‑1 and are therefore considered appraisal targets. 88 Energy will operate Charlie-1, via its 100% owned subsidiary Accumulate Energy Alaska, Inc, with cost of the well to be funded by Premier Oil Plc up to US$23m under a recent farm-out agreement. Drilling commenced on 2nd March 2020 and flow testing is anticipated to conclude in April 2020. The total Gross Mean Prospective Resource across the seven stacked targets to be intersected by Charlie-1 is 1.6 billion barrels of oil (480 million barrels net to 88E). Refer announcement dated 23rd August 2019.
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
CHARLIE-1 TARGETS | Prospective Oil Resource (MMBO): Post Farm-Out (Aug '19) | |||||
Horizon/Play | Low | Best | High | GrossMean | Net Meanto 88E | |
Indigo Discovery | Schrader / Topset | 225 | 358 | 543 | 374 | 112 |
Charlie Prospect | Schrader / Topset | 126 | 201 | 304 | 210 | 63 |
Lima Discovery / Prospect (stacked) | Seabee / Apron Fan | 105 | 323 | 713 | 376 | 113 |
Stellar Prospect / Discovery (stacked) | Torok / Fan Channel | 320 | 604 | 999 | 639 | 192 |
CHARLIE-1 APPRAISAL WELL TOTAL | 1,599 | 480 | ||||
Graphics showing the Charlie-1: Seven Stacked Horizons can be viewed in the pdf version of this announcement, which is available at the following link - http://www.rns-pdf.londonstockexchange.com/rns/7181G_1-2020-3-18.pdf
Media and Investor Relations:
88 Energy Ltd
Dave Wall, Managing Director Tel: +61 8 9485 0990
Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Hartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
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