Oil junior Red Emperor secures key drilling permits
Oil junior, Red Emperor Resources (ASX:RMP), has revealed that consortium operator, 88 Energy (ASX:88E), has received approval for all major permits needed to commence drilling of the Winx-1 exploration well on the North Slope of Alaska.
These permits include the Plan of Operations and key permits for both the ice road and pad. The Permit to Drill is due for submission (as planned) prior to the end of the year, with approval expected in January 2019 (prior to spud in February).
The Winx prospect is a 3D seismic defined conventional oil prospect in the successful Nanushuk play fairway, containing a gross mean unrisked prospective resource of 400MMbbls (126MMbbls net to RMP) and is adjacent to the Horseshoe 1/1A discovery well drilled by the Armstrong/Repsol JV in 2017.
This is a proven area of high-profile discoveries and prolifically producing projects, including Prudhoe Bay and Kuparuk River, which have produced 15 billion barrels of oil since 1977.
Recent discoveries made by the likes of Armstrong Oil and Gas, Repsol and ConocoPhillips (NYSE:COP) are also confidence-boosting.
RMP managing director, Greg Bandy, commented on the permit approval: “Granting of these major permits ahead of schedule has bought us one significant step closer to drilling the much anticipated Winx-1 exploration well in Q1 2019.
“Thanks must go to the operations team at 88 Energy, who have once again shown their ability to efficiently manage this JV, and we look forward to updating the market with more detailed aspects of the operations over the coming weeks.”
The main objective of the Winx-1 well is the Nanushuk Topset play, targeting the Nanushuk 4 and 5 sands.
The Winx prospect has been identified using the Nanuq South 3D, which covers the Horseshoe discovery plus a large swathe of the Western Blocks. Similar amplitude response has been observed at the Winx prospect, as seen at Horseshoe.
More about Red Emperor Resources
Red Emperor Resources is a natural resource exploration company with oil and gas interests on the Alaska North Slope and in South East Asia.
The company has executed definitive agreements with its consortium partners, 88 Energy and Otto Energy, that will see it participate in the drilling of a highly prospective Nanushuk oil trend exploration well on the Alaska North Slope in early 2019.
The drill target is immediately adjacent to and a direct analogue of the Horseshoe – 1/1A oil well drilled in 2017. Horseshoe is part of the billion-barrel-plus Nanushuk oil play-fairway, one of the largest conventional oil fields discovered in the US in more than 30 years.
Some technical work on the Western Blocks has identified a gross best estimate prospective resource volume of 400MMbbls (126 MMbbls net to RMP), and a geological chance of success of 25-35%.