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88 Energy prepares for Charlie-1 well as completion of Premier Oil pair-up nears

Next month the Premier Oil farm-out will complete, giving the new partner some 60% of the project.

88 Energy Ltd - 88 Energy prepares for Charlie-1 well as completion of Premier Oil pair-up nears
Premier will pay up to US$23mln of the Charlie-1 well costs

88 Energy Ltd (LON:88E, ASX:88E) told investors it has executed a rig contract for the planned Charlie-1 appraisal well which has an envisaged February 2020 spud date.

The Alaska focussed explorer said in a statement that its agreed farm-out transaction with Premier Oil PLC (LON:PMO) is expected to complete shortly, and, meanwhile, it continues to progress preparations for the Charlie well.

“Significant progress has been made on the permitting front, with only two of the key permits now outstanding; the plan of operations and permit to drill, which are both in the process of being finalised and approved,” 88 Energy said.

READ: 88 Energy launches A$10mln equity funding

“Additionally, tendering and finalisation of contracts for equipment and services required for Charlie-1 are advancing as planned.”

When it completes, before the end of November, the farm-out deal will see Premier take a 60% interest in Project Icewine’s ‘Area A’ conventional acreage.

Premier agreed to cover the costs of Charlie-1, up to US$23mln, as part of the farm-out transaction.

Charlie-1 aims to appraise the reservoir previously observed in the Malguk-1 discovery. Drilling is slated to start in February and 88 Energy expects to deliver well testing results by April.

Pre-drill, Charlie-1 is estimated to be targeting some 1.6bn barrels of gross prospective resources – representing some 480mln barrels for 88 Energy’s 30% interest in the project.

Quick facts: 88 Energy Ltd

Price: 1.1378 GBX

AIM:88E
Market: AIM
Market Cap: £79.55 m
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