08:00 Wed 17 May 2017
88 Energy Limited - Icewine#2 Total Depth Reached
Icewine#2 Total Depth Reached
Highlights
· Icewine#2 Total Depth reached on schedule and without incident
· Wireline logging operations underway
· Production testing / flowback to begin in late June / early July
Icewine#2 Drilling Complete
Following the spud of the Icewine#2 Production Test well on 24th April, the Arctic Fox drilling rig reached Total Depth of 11,450' at 19:55 15th May (AK time).
Forward Program
The immediate forward program involves completion of wireline logging, cementing the production liner and demobilising the Arctic Fox. Subsequently, in early June, micro stimulations will be performed to calibrate the stress profile in the zone of interest. This data will then be combined with the processed and interpreted log information in order to select the optimal location of perforations for the main stimulation operation. Execution of the main stimulation is scheduled to take place in the third week of June with cleanup of stimulation fluid over the following one to two weeks. The well will then be placed on production test, initially at a choked back rate in order to ensure that proppant is not displaced from the reservoir.
Further updates will be made as and when appropriate throughout the drilling / testing program.
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Neil McDonald/Derrick Lee
Pursuant to the requirements of the
Project Icewine Overview
In
The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5% royalty.
The HRZ liquids-rich resource play has been successfully evaluated based on core obtained in the recently completed (
Significant conventional prospectivity has also been identified on recently acquired 2D seismic across the project acreage.
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.
Generous exploration incentives are provided by the State of Alaska with up to 35% of net operating loss refundable in cash.
The primary objective is an untested, unconventional liquids-rich shale play in a prolific source rock, the HRZ shale (Brookian Sequence), that co-sourced the largest oil field in North America; the giant
Recently acquired 2D seismic has identified large conventional leads at Project Icewine within the same Brookian petroleum system and shallow to the HRZ shale, including potential high porosity channel and turbiditic sands associated with slope apron and deepwater fan plays. The Brookian conventional play is proven on the North Slope; the USGS (2013) estimated the remaining oil potential to be 2.1 billion barrels within the Brookian sequence. Two recent discoveries in the Brookian have already exceeded these estimates, with Armstrong/Repsol discovering 1.4 billion barrels in 2015 and Caelus announcing a 2.5 billion barrel discovery in 2016. Additional conventional potential exists in the Brookian delta topset play, deeper Kuparuk sands and the Ivishak Formation.
A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by 88 Energy to evaluate the unconventional resource potential of Project Icewine in
About 88 Energy: 88 Energy has a 77.5% working interest and operatorship in ~271,000 acres onshore the prolific North Slope of Alaska ("Project Icewine"). Gross contiguous acreage position will expand on award of additional leases successfully bid on in the
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