88 Energy relays key well details as Charlie countdown continues
Monday, 24 February 2020 88 Energy Ltd (LON:88E) has shared a number of key facts with investors ahead of the hotly anticipated Charlie-1 well in Alaska. The company, in a statement, said it had updated its investor presentation to include details about the pending drill programme. Rig and well teams mobilised earlier this month. Drilling is expected to start in “late February”. The well will be drilled down to a depth of 11,400 feet. READ: 88 Energy starts countdown to Charlie well programme Drilling, logging while drilling, and wireline logging operations are expected to take a total of 30 days to complete. Subsequently, subject to initial results, the well will undergo flow testing with up to two production tests slated. Each test is expected to take 14 days. Altogether, 88 Energy expects that the whole well programme will take around 60 days to deliver. It added that the reporting of results will be “determined by materiality and continuous disclosure obligations.” Earlier this month, 88 Energy raised A$5mln of new capital with the funding expected to cover any potential costs above those carried by Premier Oil PLC (LON:PMO) – which in 2019 agreed a farm-in deal to participate in the project. Premier is paying up a total of US$23mln to drill Charlie which is designed to be an appraisal of the Malguk-1 discovery made by BP in 1991. Malguk-1 discovered 251 feet of light oil pay in turbidite sands but was never tested. Premier estimates an accumulation of more than one billion barrels of oil in place, based on the original well data and its evaluation of the existing 3D dataset. Charlie-1 will intersect seven stacked prospects, four of which are considered appraisal targets. The total Gross Mean Prospective Resource across the seven stacked targets to be intersected by Charlie-1 is 1.6 bn barrels of oil (480mln barrels net to 88E). The team-up deal sees 88 Energy retain a 30% stake in the Area A portion of the Project Icewine acreage. Additional option deals are in place that would give Premier access to Areas B and C.