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88 Energy one week from spud at Merlin-1, targeting 645 million barrels
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88 Energy Limited (ASX:88; AIM 88E) has advised that pre-spud operations are now entering the final phase as Rig 111 makes it way to the drilling location for Merlin-1, and that the spud date is now scheduled for next Monday, 8 March.
The Merlin-1 well will initially be drilled to 1,500 feet, then surface casing will be installed and the Blow Out Preventer System tested.
This is expected take approximately one week to execute, after which the well will be deepened through the target horizons in the Nanushuk Formation to a maximum total depth of 6,000 feet.
The Merlin-1 well is scheduled for spud in early March 2021 and is targeting 645 million barrels of gross mean prospective resource.
Logging while drilling and mudlogging will provide initial indications as to the prospectivity of the well during this part of the operation that is expected take three to five days.
A sophisticated wireline logging suite will then be run, including sidewall cores and downhole sampling.
Wireline logging is expected to take five to seven days, and if the results are encouraging, then the well will be completed with casing and a flow test conducted.
The drilling of the second well in the program, Harrier-1, remains subject to permitting, Merlin-1 results and weather/schedule.
Commenting on progress and outlining what may lie ahead following Merlin-1, managing director Dave Wall said, “Pre-spud operations are now entering the final phase as Rig 111 makes it way to the drilling location for Merlin-1.
"Success at Merlin-1 could yield over 300 million barrels net to 88E and open up further prospectivity at Project Peregrine (see above), in addition to unlocking the substantial proven resource at the adjacent Umiat oil field, which is 100% owned by 88 Energy.
"Metrics for discovered oil were demonstrated by the late-2017 Oil Search (ASX:OSH) transaction where US$3.10 per barrel was paid in a low oil price environment for an interest in the Pikka Field, a discovery in the Nanushuk Formation.
"Success at Merlin-1 would be transformational for our shareholders and we look forward to providing further information on operations over the next 4 to 6 weeks.’’