88 Energy Limited Operations Update (7181G)

TIDM88E

RNS Number : 7181G

88 Energy Limited

18 March 2020

19(th) March 2020

88 Energy Limited

Operations Update

88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM 88E) is pleased to provide the following update related to operations for the Charlie-1 appraisal well, which is currently being drilled on the North Slope of Alaska.

Highlights

   --     Drilling of production hole to commence imminently 

Detail

After a minor delay, mainly due to weather, surface casing has now been set and cemented. A mandatory test of the Blow Out Preventer system was also completed successfully, which will now be followed by a Formation Integrity Test. Drilling will then proceed in the 8.5" production hole.

The results from the Logging While Drilling phase of the program are expected to be announced after Total Depth has been reached and initial analyses have been completed, scheduled for early April.

The Company can confirm that COVID-19 has had no impact on the program to date and appropriate measures have been put in place to ensure that any potential impacts are being proactively addressed.

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 commenced on 2(nd) March 2020 and flow testing is 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 2019.

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 
                                                                          ------  --------- 
 

Graphics showing the Charlie-1: Seven Stacked Horizons can be viewed in the pdf version of this announcement, which is available at the following link - http://www.rns-pdf.londonstockexchange.com/rns/7181G_1-2020-3-18.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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDLVLLFBXLEBBQ

(END) Dow Jones Newswires

March 19, 2020 03:00 ET (07:00 GMT)