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88 Energy Ltd

Charlie-1 Appraisal Well Update

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RNS Number : 7705P
88 Energy Limited
15 October 2019
 

15th October 2019

 

88 Energy Limited 

 

Charlie-1 Appraisal Well Update

 

88 Energy Limited (ASX: 88E) ("88 Energy" or the "Company") provides the following update related to the upcoming drilling of the Charlie-1 appraisal well at Project Icewine, located on the Central North Slope, Alaska.

 

Highlights

·    Rig contract executed for Charlie-1 appraisal well

·    Operational activity for Charlie-1 progressing to plan for February 2020 spud

·    Farm-out with Premier Oil Plc expected to complete shortly

 

Operations Update

88 Energy Ltd, via its 100% owned subsidiary Accumulate Energy Alaska, Inc ("Accumulate"), has executed a rig contract with Nordic-Callista Services to utilise Rig-3 for the upcoming drilling of the Charlie-1 appraisal well. 88 Energy utilised Rig-3 for the drilling of the Winx-1 well in March 2019 and was extremely pleased with its safe and efficient performance throughout the course of operations.

 

Significant progress has been made on the permitting front, with only two of the key permits now outstanding; the Plan of Operations and Permit to Drill, which are both in the process of being finalised and approved. Additionally, tendering and finalisation of contracts for equipment and services required for Charlie-1 are advancing as planned.

 

The conditions precedent related to the recent farm-out with Premier Oil Plc are being completed according to schedule, with all conditions expected to be met prior to the end of November 2019.

 

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 is scheduled to commence in February 2020 with flow testing 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.

 

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 INTERSECTED HORIZONS

Prospective Oil Resource MMBO (Unrisked)

Prospects and Leads

August 2019: Post Farm-Out

Horizon / Play

Low

Best

High

Gross Mean

Net Mean to 88E

Indigo Discovery

Schrader/Topset

225

358

543

374

112

Charlie Prospect

Schrader/Topset

126

201

304

210

63

Lima Upper Prospect

Seabee/Apron Fan

23

66

144

77

23

Lime Lower Prospect

Seabee/Apron Fan

77

240

528

299

90

Stellar Upper Discovery

Torok Fan

121

234

394

249

75

Stellar Middle Discovery

Torok Channel

148

277

455

292

88

Stellar Lower Prospect

Torok Fan

51

93

150

98

29

CHARLIE-1 TOTAL:

1,599

480

               

 

A graphic showing the proposed Charlie-1 well location and the seven stacked horizons referred to in the table above can be viewed at the following link

http://www.rns-pdf.londonstockexchange.com/rns/7705P_1-2019-10-14.pdf

 

Media and Investor Relations:

 

88 Energy Ltd

Dave Wall, Managing Director                                                   Tel: +61 8 9485 0990

Email: [email protected] 

 

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


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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