88 Energy Ltd (AIM:88E, ASX:88E) is now planning an appraisal well for the Merlin project, after latest analysis of this year’s well results confirmed the presence of light oil.
The company, in a statement, said that well evaluation successfully demonstrated the presence of oil in the N20 and N18 targets, and additionally shows that a new target referred to as N19 was also penetrated in the first well. A total of 41 feet of net pay was encountered by the well, it added.
Locations to the east of Merlin-1 are now being considered for appraisal. There, the company is expecting enhanced reservoir thickness and quality.
An appraisal drill programme is anticipated in the first quarter of 2022.
"We are thrilled with the results from the Merlin-1 exploration well,” said managing director Ashley Gilbert. “This is the best well we've drilled on the North Slope of Alaska to date, with light oil detected in the Nanushuk across three separate horizons.”
“Whilst we have a lot more work to do, the Merlin-1 well has confirmed an active petroleum system in the Peregrine acreage.
“Results of this significance, together with the magnitude of the opportunity, merit a pace of evaluation that facilitates further drilling and seismic in upcoming winter seasons."