ASX-listed oil and gas explorer, 88 Energy says the planned spudding of the Merlin-1 well at its Project Peregrine on the North Slope of Alaska remains on track to go ahead next month.
The Perth-based company also hopes to drill the project’s Harrier-1 well once the Merlin-1 well has been completed and, potentially, flow tested. Construction of the snow road to the Merlin-1 and Harrier-1 locations kicked off last month.
With the host hydrocarbon-bearing Nanushuk Formation reservoir having been the source of renewed exploration interest on the North Slope of Alaska, courtesy of a spate of oil discoveries made there in the past six or so years, oil and gas watchers will be keeping a close eye on 88 Energy’s Merlin-1 well.
88 Energy Managing Director, David Wall said: "It is now full steam ahead with operations prior to the scheduled spud of the first well, Merlin-1, at Project Peregrine in six to eight weeks. Whilst the Peregrine drilling forms the focus, there is plenty of activity on other fronts that we look forward to providing updates on throughout the course of 2021.”
The company last month struck an agreement to farm out a 50 per cent interest in the Project Peregrine. Alaska Peregrine Development Company, or “APDC” can earn the stake in Peregrine through the contribution of US$11.3 million towards the cost of the Merlin-1 well, which has an estimated total cost of US$12.6 million.
88 Energy will chip in the balance of US$1.3 million and retain the other half share in the Peregrine field. Thereafter the dynamic duo will foot the bills associated with the project equally to reflect their respective holdings.
According to 88 Energy, APDC is made up of a consortium of private US groups who have extensive experience in the oil and gas industry.
Mr Wall said last month: "Being able to secure a farm-out deal with a high calibre partner on close to two-for-one deal terms in the current oil and gas environment is a major coup for our shareholders. This is especially true given the short time period in which it has been achieved as we only acquired Project Peregrine in July. APDC is a close cultural fit for our proposed future plans for Project Peregrine.”
An independent assessment of the potential Project Peregrine resource put the gross un-risked prospective resource at an estimated 1.6 billion barrels of oil equivalent across three prospects including Merlin and Harrier.
88 Energy says Merlin and Harrier are interpreted to be analogous to and on-trend with similar seismic signatures to those of existing recent discoveries in the region – such as ConocoPhillips’ Willow field and Harpoon prospect.
The Peregrine partners are targeting an un-risked prospective resource of 645 million barrels from the Merlin-1 well.
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By Matt Birney
