88 Energy (LON:88E) boss Dave Wall has told investors that early observations and tests on the shale discovery in the Project Icewine well are very positive.
The company, in a technical update, has said that ongoing leaching tests have shown oil and condensate coming from core taken from the HRZ shale in the well.
Other testing, via mass spectrometry analysis of mud gas, confirmed the presence of liquids rich gas throughout the shale interval.
Analysis of the HRZ samples has indicated total organic carbon (TOC) values in the range of 2.3% and 4.9% (averaging 3.5% by weight), which the company says is favourable compared to successful North American Shale plays.
Moreover, it suggested that the measure of TOC by volume would likely be significantly higher and would be confirmed after post X-ray diffraction (XRD) analysis.
88 Energy, at this time, conclude that the results to date are supportive of the favourable thermal maturity window predicted within the HRZ shale at the Icewine 1 well location.
As the evaluation is ongoing, the upcoming phase of work is expected to yield results in regards to the shale’s permeability and porosity, final thermal maturity, as well as rock mechanics and stress regime.
The company will also continue preparations for seismic work, scheduled for March. This work will aim to greater define the potential of the conventional oil resources in the area, which were observed in the Icewine well.
Dave Wall, 88 Energy managing director, said: "The early observations and tests are directionally very positive for the HRZ play at Project Icewine and consistent with pre-drill modelling.
“At this stage of the process, we are highly encouraged by these results; however, substantial additional work is ongoing to de-risk our key 'Achilles heels' and we look forward to sharing these results as and when they become available.”