88 Energy (LON:88E) has confirmed an active petroleum system across its Project Icewine acreage in Alaska in its shallower secondary target.
The firm, which is currently drilling its first well to a depth of 11,600 feet, encountered higher than expected levels of gas at between 10,011 and 10,121 feet.
Initial hydrocarbon testing showed the results were liquids rich and encouraging for both conventional and unconventional plays, 88 said, though it added that the 110 feet interval appeared to be predominantly tight with the shows likely associated with residual oil.
A full evaluation will be undertaken when the well reaches target depth.
Dave Wall, managing director, said: “Results in the most recently drilled section provide encouragement for both the unconventional thermal maturity model as well as conventional potential at Project Icewine.”
Oil shows with minor fluorescence and crush cut were also recorded.
Drilling has just resumed again after a draw-works repair delay and the current section will be finalised shortly at around 10,490 feet.
After that, 88 intends to run seven inch casing into its main HRZ shale target and start coring within the next week.
“It is still early days and we are yet to definitively clear the first of several required hurdles in the planned HRZ evaluation programme, but we are heading in the right direction,” Wall said.
Shares rose 13% to 0.6p today.