17th Mar 2016 08:45
LONDON (Alliance News) - 88 Energy Ltd on Thursday said it has completed the first phase of the Icewine project in Alaska, and said it has initiated the second phase of work by starting to draw up plans and designs for the second exploration well to be drilled on the project.
88 Energy shares were trading up 30% to 4.01 pence per share on Thursday morning.
88 Energy has been working on the project to try to derisk the HRZ shale formation by drilling the first well on the project, Icewine-1, which mitigated the "three Achilles heels" of the project, the company said.
"The company believes that the HRZ will be highly amenable to fracture stimulation operations," said 88.
"The HRZ has been proven to share many characteristics that are similar to the rocks in the Marcellus and Haynesville that give rise to exceptional flow rates, albeit we are expecting liquids as opposed to gas. Additionally, our view of the nature of the HRZ play, based on these characteristics, is pushing the needle towards a possible production profile that is more akin to conventional reservoir performance," said Managing Director Dave Wall.
Icewine-2 will be a horizontal, multi-frack appraisal well which will hopefully allow the company to conduct a production test on the main HRZ shale target. 88 Energy also plans to acquire 2D seismic over the area in a programme that will be funded using finance from Bank of America, it said.
"Further work to fine tune frac design is now underway and we also expect seismic acquisition to commence imminently," said Wall.
By Joshua Warner; [email protected]; @JoshAlliance
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