88 Energy Limited Charlie-1 Appraisal Well Update (7473U)

TIDM88E

RNS Number : 7473U

88 Energy Limited

27 November 2019

27(th) November 2019

88 Energy Limited

Charlie-1 Appraisal Well Update

88 Energy Limited (ASX: 88E) ("88 Energy" or the "Company") provides the following update related to the upcoming drilling of the Charlie-1 appraisal well at Project Icewine, located on the Central North Slope, Alaska.

Highlights

   --    Farm-out with Premier Oil Plc ("Premier") finalised - completion documents executed 
   --    Plan of Operations for Charlie-1 appraisal well approved 
   --    Operational activity for Charlie-1 progressing to plan for February 2020 spud 

Farm-out Update

All conditions precedent to the farm-out agreement between 88 Energy, Premier and Burgundy Xploration, signed in August 2019, have been satisfied. Consequently, execution of the final agreements took place on 26(th) November 2019.

Operations Update

The Alaska Department of Natural Resources approved the Plan of Operations for the Charlie-1 appraisal well on 22(nd) November. The Plan of Operations is one of the key major permits required for drilling. The final major permit is scheduled for submission in December, with approval expected in January ahead of the scheduled February spud date.

All other contracting and logistical work is proceeding as planned ahead of the scheduled February 2020 spud date.

About the Charlie-1 Appraisal Well

The Charlie-1 appraisal well has been designed as a step out appraisal of a well drilled in 1991 by BP Exploration (Alaska) Inc called Malguk-1. Malguk-1 encountered oil shows with elevated resistivity and mud gas readings over multiple horizons during drilling but was not tested due to complications towards the end of operations, which resulted in lack of time before the close of the winter drilling season. It was also drilled using vintage 2D seismic, which was insufficient to adequately determine the extent of any of the prospective targets encountered.

88 Energy subsequently undertook revised petrophysical analysis, which identified what is interpreted as bypassed pay in the Malguk-1 well. 88E also completed acquisition of modern 3D seismic in 2018, in order to determine the extent of the discovered oil accumulations. Charlie-1 will intersect seven stacked prospects, four of which are interpreted as oil bearing in Malguk--1 and are therefore considered appraisal targets. 88 Energy will operate Charlie-1, via its 100% owned subsidiary Accumulate Energy Alaska, Inc, with cost of the well to be funded by Premier Oil Plc up to US$23m under a recent farm-out agreement. Drilling is scheduled to commence in February 2020 with flow testing anticipated to conclude in April 2020. The total Gross Mean Prospective Resource across the seven stacked targets to be intersected by Charlie-1 is 1.6 billion barrels of oil (480 million barrels net to 88E). Refer announcement dated 23(rd) August.

Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

 
  CHARLIE-1                       Prospective Oil Resource (MMBO): Post Farm-Out (Aug 
   TARGETS                                                '19) 
                           ---------------------------------------------------------------- 
                                  Horizon/Play         Low   Best   High  Gross   Net Mean 
                                                                           Mean     to 88E 
                           --------------------------  ----  -----  ----  ------  --------- 
  Indigo Discovery              Schrader / Topset      225    358   543    374       112 
                           ==========================  ====  =====  ====  ======  ========= 
  Charlie Prospect              Schrader / Topset      126    201   304    210       63 
                           ==========================  ====  =====  ====  ======  ========= 
  Lima Discovery / 
   Prospect (stacked)          Seabee / Apron Fan      105    323   713    376       113 
                           ==========================  ====  =====  ====  ======  ========= 
  Stellar Prospect 
   / Discovery (stacked)       Torok / Fan Channel     320    604   999    639       192 
-------------------------  --------------------------  ----  -----  ----  ------  --------- 
  CHARLIE-1 APPRAISAL WELL TOTAL                                          1,599      480 
------------------------------------------------------------------------  ------  --------- 
 

A graphic showing the proposed Charlie-1 well location and the targets referred to in the table above can be viewed at the following link - http://www.rns-pdf.londonstockexchange.com/rns/7473U_1-2019-11-26.pdf

Media and Investor Relations:

88 Energy Ltd

Dave Wall, Managing Director Tel: [phone]

Email: [e-mail]

   Finlay Thomson, Investor Relations                                         Tel: [phone] 

Hartleys Ltd

Dale Bryan Tel: + 61 8 9268 2829

Cenkos Securities Tel: + 44 131 220 6939

Neil McDonald/Derrick Lee

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November 27, 2019 02:00 ET (07:00 GMT)