22nd March 2021
This announcement contains inside information
88 Energy Limited
Operations Update
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM 88E) provides the following update related to its operations in the NPR-A region of the North Slope of Alaska.
Highlights
- Merlin-1production hole drilling to commence imminently
- At market share subscription agreement executed
Details
88 Energy is pleased to report that the Merlin-1 surface hole was successfully drilled to 1,512ft as planned. Surface casing has now been cemented and the blow out preventer system tested. A formation integrity test (FIT) was successfully undertaken and the rig is now drilling ahead in the production hole where the primary Nanushuk targets are located. Planned total depth is 6,000'.
Logging while drilling and mudlogging will provide initial indications as to the prospectivity of the well during this part of the operation, which is expected take three to five days. A sophisticated wireline logging suite will then be run, including sidewall cores and downhole sampling. Wireline logging is expected to take five to seven days.
If the results from the wireline logging are encouraging, then the well will be completed with casing and a flow test conducted.
88 Energy has entered into a share subscription agreement with ELKO International LLC ("ELKO"), one of the major contractors for the operation. Under the agreement ELKO will be issued 360m shares at $0.018, which is a 225% premium to the placement undertaken on 12th February 2021. The are no fees associated with the placement.
Managing Director, Dave Wall, commented: "The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company's share of the recently announced cost overruns.
We wish all our shareholders good fortune over the coming days."
The issue of the New Ordinary Shares is not subject to shareholder approval as the issuance will fall within the Company's placement capacity pursuant to ASX Listing Rule 7.1A. A total of 360,000,000 shares will be issued pursuant to Listing Rule 7.1A. The New Ordinary Shares will rank pari passu with the existing ordinary shares in the Company, with settlement on Monday, 22 March 2021.
Following the issue of the New Ordinary Shares, the Company will have 12,521,590,431 ordinary shares on issue, all of which have voting rights. The figure of 12,521,590,431 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.
www. 88energy.com
ABN 80 072 964 179
Ground Floor, 516 Hay Street Subiaco WA 6008 | PO Box 352, Subiaco WA 6904 Australia | Phone +61 8 9485 0990 |
About Project Peregrine - Imminent Drilling
Project Peregrine is located in the NPR-A region of the North Slope of Alaska and encompasses ~195,000 contiguous acres. It is situated on trend to recent discoveries in a newly successful play type in topset sands in the Nanushuk formation. 88 Energy has a 100% working interest in the project that will reduce to 50% post the completion of funding as part of a recent farm-in, whereby 88E is carried on the first US$10m (of an originally estimated US$12.6m total cost) for the Merlin-1 well.
Project Peregrine and Recent Nanushuk Discoveries
The Merlin-1 well was spudded on 10th March 2021 and is targeting 645 million barrels of gross mean prospective resource#. Flow testing of Merlin-1 is planned, if wireline logging confirms a discovery. A second well, Harrier-1, may commence immediately following completion of operations at Merlin-1, subject to results from Merlin-1, schedule and permit approvals. Harrier-1 is targeting gross mean prospective resource of 417 million barrels#.
Independent Resource Assessment#
#Please refer to release dated 23 February 2021 for full details with respect to the Prospective Resource estimate, associated risking and applicable Cautionary Statement.
Each of the Merlin and Harrier prospects is located on trend to an existing discovery, in the same play type (Nanushuk topsets). This has de-risked the prospects considerably and resulted in a relatively high independently estimated geological chance of success.
www. 88energy.com
ABN 80 072 964 179
Ground Floor, 516 Hay Street Subiaco WA 6008 | PO Box 352, Subiaco WA 6904 Australia | Phone +61 8 9485 0990 |
Merlin-1 - on trend to large Willow oil field
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.
This announcement has been authorised by the Board.
Yours faithfully
Dave Wall
Managing Director
88 Energy Ltd
Media and Investor Relations: | |
88 Energy Ltd | |
Dave Wall, Managing Director | Tel: +61 8 9485 0990 |
Email:admin@88energy.com | |
Finlay Thomson, Investor Relations | Tel: +44 7976 248471 |
EurozHartleys Ltd | |
Dale Bryan | Tel: + 61 8 9268 2829 |
Cenkos Securities | Tel: + 44 131 220 6939 |
Neil McDonald / Derrick Lee |
www. 88energy.com
ABN 80 072 964 179
Ground Floor, 516 Hay Street Subiaco WA 6008 | PO Box 352, Subiaco WA 6904 Australia | Phone +61 8 9485 0990 |
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Disclaimer
88 Energy Limited published this content on 21 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2021 15:49:05 UTC.