88 Energy Ltd (LON:88E, ASX:88E) has kicked off the hotly anticipated Icewine-2 drilling programme which aims to confirm the commercial potential of the HRZ shale discovery in Alaska.
The Arctic Fox rig started drilling Icewine-2 last night, at 19:15 local time in Alaska.
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"The spud of Icewine#2 represents another milestone for the company and its shareholders and we now look forward to a safe operation, above all else,” said Dave Wall, 88 Energy managing director.
“It is only a few short weeks before production testing begins, which could unlock the huge resource potential of the HRZ shale play."
88 Energy anticipates that Icewine-2 will undergo production testing in late June or early July.
Icewine-2 follows up the previous success of the Icewine-1 discovery well which confirmed the presence of the potentially large HRZ shale and delivered technical readings that were better than expected prior to drilling.
Production testing will be pivotal for the project’s commercial potential, and as such the programme will be followed closely by investors.