88E set to drill 645 million barrel oil target

By Jonathan Jackson. Published at Mar 22, 2021, in Energy

88 Energy (ASX:88E) is set to begin drilling its flagship Merlin-1 oil well, part of its Project Peregrine located in the highly prolific North Slope of Alaska on trend to a large discovery by oil super major ConocoPhillips.

The deepest target sits on the same shelf break as ConocoPhilips’s recent Harpoon discovery.

The shallowest target is sitting on a shelf break which has been proven as a hydrocarbon bearing and commercial petroleum system - the 750 million barrel Willow oil field...

88E’s Alaskan oil well has already been drilled to 1,500 ft depth and now a production hole is travelling down to the planned total depth of 6,000 ft.

Three stacked targets, each comprising hundreds of millions of barrels, are being drill tested this week.

Logging while drilling and mud logging will provide early indications as to the prospectivity of the well in approximately 3 to 5 days.

After that, over another 5 to 7 days, wireline logging will be run, including sidewalls and downhole sampling.

Encouraging results from the wireline logging, would see 88E complete the well with casing and a flow test will be conducted.

Project Peregrine

Project Peregrine is located in the NPR-A region of the North Slope of Alaska and encompasses ~195,000 contiguous acres.

The project is situated on trend to recent discoveries in a newly successful play type in topset sands in the Nanushuk formation. 88 Energy has a 100% working interest in the project that will reduce to 50% post the completion of funding as part of a recent farm-in, whereby 88E is carried on the first US$10m (of an originally estimated US$12.6m total cost) for the Merlin-1 well.

88E spudded its Merlin -1 well on 10 March 2021 and is targeting 645 million barrels of gross mean prospective resource.

88E’s project has a 1.6 billion barrel gross mean unrisked recoverable prospective resource and this well is the first to drill test this billion barrel plus gross prospective resource.

Contractor endorsement

A major contractor working on 88E’s drilling is confident of a result and will take its $6.84M fee in 88E stock at the currently higher price of 1.8c...

Under the agreement ELKO International LLC will be issued 360 million shares at $0.018, which is a 225% premium to the placement undertaken on 12 February 2021. The are no fees associated with the placement.

Managing Director, Dave Wall, said of ELKO’s commitment, “The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company’s share of the recently announced cost overruns.

“We wish all our shareholders good fortune over the coming days.”

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!