29th Feb 2016 08:33
LONDON (Alliance News) - 88 Energy Ltd shares rose on Monday after it said the ongoing analysis at the Icewine-1 well indicates there is a potential "world class" resource at the project that is consistent with the company's pre-drill estimates.
88 Energy shares were trading up 15% to 2.50 pence per share on Monday morning.
88 Energy has been integrating the results from testwork carried out on the HRZ shale formation within the well and said the ongoing analysis has indicated there is a "tier 1 liquids-rich hydrocarbon concentration with world class resource prize potential".
The gross pay within the well stands at 196.0 feet whilst the net pay stands at 180.5 feet.
88 Energy said the reservoir quality is in line with or above expectations, boasting an effective porosity of 11% compared to a typical shale play that has an average porosity range of 4% to 7%, it said.
In addition, 88 Energy said the total organic carbon average in the cored HRZ interval is 3.55%, and said hydrocarbon saturation over the entire HRZ interval is estimated at around 70%.
The company is still analysing the data and said a further update will be provided shortly.
The Icewine-1 well is still on budget, costing USD16.6 million, and has achieved all of its primnary objectives, said the company.
In 2016, 88 Energy plans to launched "Project Icewine Seismic", which will start in March. The contractor to conduct the seismic work has been selected, and the company is currently securing the funding required.
"As a consequence of these continued good results, we have tailored our seismic acquisition to focus on mitigating drilling risk for the next well, Icewine#2H, for which planning has commenced," said Managing Director Dave Wall.
"Given the current oil price, it did not make sense to attempt to delineate the more subtle, and typically smaller, conventional features at this point in time. The revised 2D seismic program will give a broader regional picture across a larger aerial extent on our expanded acreage position and should still identify those larger conventional features that would be economic at today's prices," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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