Alaska oil shale explorer 88 Energy ltd (LON:88E) told investors it has completed most of a planned seismic programme, and it has now agreed a deal to buy data gathered in a 3D programme last year,
88 Energy said 662 line kilometres have been completed, of the planned 750 kilometre 2D programme.
And the 3D deal sees the company paying contractor Alaska Seismic Ventures (ASV) a total of US$3mln, including the purchase of the 3D data.
Subsequently the company expects to see “better coverage, resolution and fold at depth” for the proposed location of the upcoming Icewine-2H well.
"Finalisation of the 2D seismic, with the added benefits gained via purchase of the ASV data, will allow the Joint Venture to gain valuable insights into the conventional potential at Project Icewine, whilst also mitigating drilling risk of the horizontal section for the planned Icewine#2H well,” said Dave Wall, 88 Energy managing director.
The new horizontal well, planned for early 2017, will be designed for a fracking and flow testing programme in order to better assess the commercial merits of what the company believes could be a major new shale oil resource play.
88 Energy also confirmed that it has is now close to signing formal papers to secure its expanded footprint on Alaska’s North Slope.
Some 172,937 new acres were successfully bid for by the company last November, and subject to signing and a US$4.25mln payment the group’s overall footprint in the Icewine area will grow to 271,119 contiguous acres.
In the meantime, the company continues to evaluate results from the Icewine-1 well and work on key planning areas for Icewine-2H.
Wall added: “The team remains extremely busy and we continue to execute as planned on the next phase of the project, which is to prove up the production potential of the HRZ liquids rich resource play.
“Thanks once again to existing shareholders and incoming investors who, through their support for the recent placement, have allowed us to push forward at a time of low oil prices so that we will be well positioned for any recovery."
Last month, 88 Energy raised A$25mln in a massively oversubscribed share placing.
Proceeds from the placing will be used for the second phase of work at Project Icewine, where the company intends to prove the production potential of the HRZ oil shale discovery which was confirmed in the first Icewine well.