Oil shows at Icewine-1
88 Energy (ASX:88E) has hit oil shows at its Icewine-1 well in Alaska.
The company hit oil shows and elevated gas shows while drilling through the Brookian conventional horizons above the target HRZ shale.
In particular, a 110-foot section hit gas shows “significantly above background”, while oil shows with minor fluorescence were also recorded.
88E told its shareholders that the oil show was residual in nature, so while at this stage it doesn’t amount to an oil find it does confirm the presence of a working petroleum system in the conventional horizon.
While there is further analysis to be undertaken, the oil show opens up the possibility that there could be a working petroleum system across the entirety of the company’s Icewine acreage, which it recently tripled.
Meanwhile, the heavy gas shows fit within the company’s thermal maturity model, giving it further confidence that its underlying assumptions on the play were correct.
The well is primarily testing the HRZ shale, but is also set to tap the shallower Brookian and deeper Kuparuk horizons.
It is being drilled as a vertical well to test all horizons at Icewine, with the drilling also set to be backed up by 3D seismic in the near term.
88E recently tripled its Icewine acreage on government auction in attempt to create the scale needed to attract a cashed-up joint venture partner in the case of success at Icewine-1.
The increased acreage position means that its target HRZ shale now has a recoverable estimate of a whopping 2 billion barrels of oil on 88E’s acreage.
It previously had a high case of 813.2 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.
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