Icewine-1 at “the business end” for 88 Energy
88 Energy (ASX:88E) is “entering into the business end” at its potentially company-making Icewine-1 well in Alaska.
It told investors this morning that it had finished the top hole at the well, cementing the 9 5/9 inch casing and testing a blowout preventer.
This means it is about to start drilling out a 8 1⁄2 inch hole ahead of 7 inch casing, when it will drill into the lower Hue conventional and HRZ shale formations.
The well is targeting both conventional and unconventional horizons, but the main play is the HRZ shale.
The US Geological Survey has predicted the HRZ shale on the Alaskan North Slope could hold as much as 2 billion barrels of oil, although 88E is a touch more sanguine with it previously telling shareholders that the well has a risked mean potential of 200.3 million barrels of oil.
Previous drilling into the HRZ has shown porosity to be 18.4%, which is estimated to be about 50% better than the Eagle Ford Shale in Texas.
“After completing the top hole and setting casing, we are now entering into the business end of the drilling program,” 88E managing director Dave Wall said.
“The next two to three weeks are operationally critical to delivery of our objectives for the Icewine-1 well and we remain confident of delivering a safe and efficient outcome.”
Speaking to Finfeed.com previously, Wall said an oil discovery could trigger a potential farm-in deal.
“What will be interesting is if we find a good amount of oil on the permit because that will give potential farm-in partners more confidence and then they’ll be able to justify the decision to their shareholders,” Wall said.
“We do know that we’re being watched quite closely by a number of parties. Dependent on other results, if we get something positive from the drilling we should be able to do a decent deal.”