Icewine has “world class resource potential”: 88 Energy
88 Energy (ASX:88E) has labelled Icewine as having “world class resource potential” after further analysis on cores found 180.5 feet of net pay within the target HRZ shale.
The ASX and AIM-listed company has been conducting ongoing technical analysis of cores taken at its Icewine-1 well in Alaska, with the latest round of results confirming a liquids-rich play.
It found that there was 196 feet of gross pay, of which 180.5ft was net pay.
Meanwhile the result on porosity has continued to come in at above the norm, with the core holding porosity of 11%, with shale plays typically hosting porosity of about 4% to 7%.
Interestingly, nearby drilling undertaken by Great Bear Petroleum before 88E drilled Icewine-1 had revealed porosity of up to 8% within the HRZ Shale.
88E also told investors that the HRZ total organic carbon average came in at 3.55%, while average clay volume in the core came in at 40%.
A higher clay volume can be problematic, as it can lead to problems with hydraulic fracturing – but at 40% it is somewhat of a lookalike to the successful Marcellus and Haynesville shales in the US.
Meanwhile, 88E has revealed that it will take 2D seismic at Icewine instead of 3D this month, saying that it didn’t make fiscal sense to focus on the conventional potential of the play when the HRZ offered up so much potential on its own.
“Given the current oil price, it did not make sense to attempt to delineate the more subtle, and typically smaller, conventional features at this point in time,” managing director Dave Wall said.
“The revised 2D seismic program will give a broader regional picture across a larger aerial extent on our expanded acreage position and should still identify those large conventional features that would be economic at today’s prices.”
Analysis on the core taken at Icewine-1 is still ongoing, but the company has already flagged folding the technical results into an updated independent resources model covering its Icewine acreage.
Back in November last year it took the decision to effectively triple its acreage position at Icewine by bidding at government auction, wanting to head off any potential competitors and build scale ahead of a mooted farm-out in the second half of this year.
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