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88 Energy vectors in on new oil target in Alaska

ASX-listed oil explorer, 88 Energy, has identified a second oil appraisal location close to the historical “Heavenly-1” test well at its Icewine project in Alaska’s oil-rich North Slope after integrating the results of its recently drilled, “Charlie-1” gas and condensate discovery well.  88 Energy believes the new appraisal location now has a better chance of finding oil in the target Seabee formation.

Whilst the Charlie-1 well found a healthy 50m of condensate-rich gas pay over a 200m interval in primary Torok formation, Charlie-1 also discovered 19.5m of oil pay in the Seabee formation above the Torok.

88 Energy said laboratory analysis of gas-condensate samples from the Torok formation reservoir sands have confirmed that it is gas with associated condensate, or very light oil with an API-gravity of 50 degrees.  Regular ‘black oil’ normally has an API-gravity range of between 30 and 45 degrees. 

Despite the company shifting its efforts onto the Seabee formation around the Heavenly-1 well location, management said there appears to be some compelling evidence on the seismic data to suggest a future oil appraisal target in the Torok up-dip and to the west of Charlie-1.

The company’s technical team has had to go back to the 3D seismic data to determine where to look for better reservoir quality in the Seabee after Charlie-1 intersected relatively poor reservoir quality, despite the significant interval of oil pay interpreted in the well.

88 Energy’s focus has now shifted to a prospective appraisal location in an area of the 3D seismic survey to the northeast of the historical Heavenly-1 well, where oil shows were also reported in the Seabee formation and where the company expects more oil potential in better reservoir sands.

88 Energy said the appraisal location adjacent to Heavenly-1 was originally available to Premier Oil when it farmed in to pick up the tab on the Charlie-1 test well.  However, the new appraisal location remains intact and untested, with better geological de-risking now due to the knowledge gained from the Charlie-1 discovery.

The company’s technical team will no doubt be feverishly re-working their mapping of the 3D seismic data across the Heavenly-1 area to work out just how much oil could be contained in the Seabee formation at the new appraisal location.

The David Wall-led company will now be promoting the area around Heavenly-1 heavily as the next opportunity for a new partner to farm in and test the potential of this very oil-rich area.

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

88 Energy (88E)

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