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88 Energy looks forward to Merlin well drilling

The Merlin prospect was estimated a year ago to possibly host some 645mln barrels of oil and it will be tested in the coming weeks

88 Energy Ltd - 88 Energy looks forward to Merlin well drilling

88 Energy Ltd (LON:88E) has highlighted that the Merlin-1 exploration well, in the Peregrine project area in Alaska, is due to spud in early March.

The well is targeting a prospect that’s estimated to host some 645mln barrels of oil, and, subject to results, it is planned to be followed by another exploration well, Harrier-1, which has 417mln barrels of prospective resources.

These are two of three prospects identified in a prospective resources statement which was completed in January 2020 and was today relayed by 88 Energy. It was produced by third-party consultant ERC Equipoise and outlined some 1.63bn barrels of total prospects (Merlin, Harrier and Harrier Deep).

READ: 88 Energy starts rig mobilisation

The resource statement was first published last year by XCD Energy, which 88 Energy acquired in the second half of 2020.

88 Energy presently owns 100% of Project Peregrine until an agreed farm-out deal completes, after which it will own 50% and will be carried on the first US$10mln of the Merlin-1 well costs (which are estimated in total at US$12.6mln).

Rig mobilisation kicked off for Merlin-1 last week. Following the spud, the drill programme is expected to take three to four weeks to complete, including logging.

It is planned that the Merlin well will be flow tested, subject to results.

Quick facts: 88 Energy Ltd

Price: 0.55 GBX

Market: AIM
Market Cap: £66.89 m


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