Icewine-1 at “the business end” for 88 Energy

Published at Nov 6, 2015, in 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 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.”

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.

Thanks for subscribing!