88 Energy Merlin-1 well evaluation finds oil presence; appraisal well drilling to commence in Q1 2022

Mon, 16th Aug 2021

Oil and gas exploration company 88 Energy has reported that its Merlin-1 post-well evaluation 'successfully demonstrates' the presence of oil in the N20 and N18 targets and said it is 'advancing planning' for an appraisal well following the Merlin-1 well, scheduled for Q1 2022. The evaluation of the Merlin-1 well, which was drilled in March 2021 to a depth of 5,267 feet, confirmed the presence of oil in 'multiple stacked sequences' in the Cretaceous Nanushuk Formation, while 88 Energy said that an additional new target, the N19 sand, that was not previously mapped, also returned a strong hydrocarbon signature following geochemical analysis. In addition, the company announced that 41 feet of net log pay has been interpreted across the three reservoir intervals and that geochemical analysis of the cores has determined the presence of a light oil with an estimated API gravity between mid-30 to low-40 API. Managing director Ashley Gilbert said: 'This is the best well we've drilled on the North Slope of Alaska to date, with light oil detected in the Nanushuk across three separate horizons. Whilst we have a lot more work to do, the Merlin-1 well has confirmed an active petroleum system in the Peregrine acreage. 'Results of this significance, together with the magnitude of the opportunity, merit a pace of evaluation that facilitates further drilling and seismic in upcoming winter seasons.' The company said that Merlin-2 appraisal drilling locations have been identified to the east of Merlin-1, 'where enhanced reservoir thickness and quality are expected', with appraisal drilling planned for the Alaskan winter drilling window of Q1 2022. At 2:17pm: (LON:88E) 88 Energy Ltd share price was 0p at 0.47p Story provided by StockMarketWire.com

FTSE 100 Latest
Value7,223.10
Change5.57