Encouraging oil shows for 88 Energy in Alaska
88 Energy has encountered encouraging oil shows drilling its potentially high impact Winx-1 exploration well in Alaska’s famed “North Slope” oil province.
The shows were encountered in the primary target Nanushuk formation along with elevated mud gas readings and an increase in logging while drilling resistivity.
Notably, the results compare favourably with data from a nearby successful third party Nanushuk well.
Oil shows were also encountered in the deeper Torok formation, which is a secondary target of the Winx-1 well.
Management said that while these initial interpretations are encouraging, more data and analysis is required to validate the results.
The company will drill the well to its total depth before running wireline logs.
Subject to results from the wireline logs, 88 Energy and its JV partners Red Emperor Resources and Otto Energy will then decide whether to stimulate and test the most prospective of the Nanushuk primary targets.
88 Energy Managing Director Dave Wall said: “There are early signs of encouragement at multiple horizons in the Winx well; however, it is too early to say whether these will result in a commercial discovery at this stage as more data and analysis is required.”
“The forward program, to be implemented over the coming days, is designed to improve confidence in the interpretation and assist in the decision to proceed with production testing, if appropriate.”
Winx-1 is located adjacent to Oil Search’s Horseshoe discovery, which substantially extended the fairway for the successful Nanushuk oil play to the south and has resources of between 500 million and 1.2 billion barrels of oil.
The well was identified by the Nanuq South 3D seismic survey, which covered Horseshoe and a large portion of the company’s Western Blocks project, as having a similar amplitude signature to that seen at Horseshoe.
88 Energy is earning a 36% interest in the Western Blocks by paying for 40% of the drilling costs for the USD$15 million Winx-1 well.