88 Energy Ltd (LON:88E) told investors that latest analysis of samples from the Merlin-1 well, drilled earlier this year on the North Slope of Alaska, “definitively demonstrates the presence of hydrocarbons”.
These latest lab tests were carried out on fluid extracts from selected core samples.
Specifically, the company noted that the analysis comes from 5 of 18 selected trims from side-wall core samples obtained from prospective zones in Merlin-1 which could not be tested by a downhole fluid extraction tool. They also correspond with depths where good oil shows were noted during drilling, it added.
“The highly encouraging test results to date serve to refine the company's understanding of both the quantity and the mobility of hydrocarbons in place as well as the commercial potential of the greater Project Peregrine acreage, which will be further appraised in coming seasons,” 88 Energy said in a statement.
Further quantitative screening has begun on the remaining samples, it added.
The company noted that the findings of the test and analysis work will be consolidated and integrated into the Project Peregrine database, which will form the basis of future farm-out and exploration on the acreage.