88 Energy Ltd (LON:88E, ASX:88E) reported further evidence of oil in the Merlin-1 well, in Alaska.
Samples taken from sidewall cores showed fluorescence and ‘cut’ which are both indicators of oil. They were present in samples taken from several horizons.
The samples have now been sent for further analysis.
"The sidewall core photos provide further evidence of the presence of oil over multiple horizons in the Merlin-1 well,” said Dave Wall, managing director. “Whilst these results are confirmatory of the cuttings data and were expected, it is reassuring to see."
READ: Encouraging Merlin well results frustrated by equipment failure
The company told investors that a schedule of expected results will be released in the coming days.
Last week, 88 Energy provided encouraging results from the Merlin well, but equipment failure prevented hydrocarbon samples from being taken. Multiple prospective zones were identified as part of the first run of the wireline programme. The findings are consistent with the shows and logs obtained while drilling.
Further work is required to re-map the volumetric potential of these zones.
A power outage due to equipment failure meant the company had to pull out of the hole for repairs before obtaining samples, it added. After repairs were completed, the run back in hole encountered several sticky sections, but the sampling tool did not re-establish good communication.
A decision was made to move to the next shallowest prospective zone, which had exhibited good oil shows and petrophysical characteristics, but wellbore condition issues prevented a test as the tool became stuck. The tool was freed but the risk of returning to that zone was deemed too high.
Not being able to sample these two most prospective zones does not preclude a discovery, 88 Energy noted, but analysis of sidewall cores and potentially further drilling may be required for confirmation.