88 Energy narrows focus as Icewine-2 spud looms
88 Energy (ASX:88E) has narrowed its focus to two key horizons at its Icewine project as a Q1 spud of the potentially game-changing Icewine-2 well draws closer.
Releasing its quarterly report to shareholders this morning, the ASX-listed oil play told its shareholders that the ‘landing zone’ for the horizontal well had been narrowed after additional rock property analysis.
While the final horizon is yet to be selected, the better news for 88E is that the rock property analysis backed up what its integrated petrophysics model has been saying.
This gives the company increased confidence about its pre-drill predictions.
It should be noted that oil exploration is inherently risky though, and there is no guarantee of success – consult a professional before investing.
88E had previously estimated a break-even point for the Icewine project ranging from $68 per barrel to $27/bbl, with the midcase at $39/bbl.
88E is currently gearing up to drill Icewine-2, the first horizontal well to be drilled by the company at the Icewine play in Alaska.
It is targeting the HRZ shale, a zone which has been proved up by a slew of technical data gleamed from the drilling of vertical well, Icewine-1.
Based on the technical data, DeGolyer and MacNaughton released an updated resource estimate of up to 1.4 billion barrels of recoverable oil equivalent – based on technical data from Icewine-1.
Internal estimates, however, had that figure at 3.6 billion barrels.
Before Icewine-1 was drilled, D&G said the play had recoverable potential of 492 million barrels on a gross mean unrisked basis.
88E will be hoping positive flow data from Icewine-2 may trigger another look at the numbers.
It told its shareholders today that the drilling of Icewine-2 was on track for Q1 next year, and suitable rigs had been identified to do the job.
In other news, 88E said that 2D seismic that it had taken from around the proposed Icewine-2 location would be interpreted by August.
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