88 Energy eagerly awaits Merlin-1 spud next month

Francesca Morgan
Vox Newswire
10:49, 23rd February 2021

88 Energy (88E FOLLOW) has reiterated to investors that the Merlin-1 exploration well which is located in the Project Peregrine in Alaska, is still on track to be spudded in early March 2021.

The Alaskan-focused explorer is targeting 645 million barrels of mean unrisked net entitlement prospective oil resources, and subject to results, a second well named Harrier-1, is planned to commence immediately following completion of operations at Merlin-1. 

Harrier-1, which is also subject to schedule and permit approvals, is targeting mean unrisked net entitlement prospective oil resources of 417m barrels and is expected to cost ~US$7m.

The Merlin and Harrier prospects are located on trend to an existing discovery, in the same play type. They form two out of three prospects outlined in an Independent Prospective Resources Report completed in January 2020 by ERC Equipoise and released today by 88E.

The report has assessed the prospective resources associated with 88 Energy's 100% owned Project Peregrine of over 1.6 billion barrels in the mean case (unrisked net entitlement).

The data used to compile the report includes reprocessed 2D seismic data, basin modelling, petrophysical analysis of publicly available wells and historical geological records. 

The data was originally compiled and interpreted by XCD, now a 100% owned subsidiary of 88E, and was reviewed, validated and in some cases modified independently by ERCE.

88E currently holds a 100% working interest in the Project Peregrine. The Group’s holding will reduce to 50% post the completion of funding as part of a recent farm-in, whereby 88E is carried on the first US$10m (of an estimated US$12.6m total cost) for the Merlin-1 well.

Last week, 88E told investors that it had mobilised the Rig-111 to the Merlin-1 drilling location. Drilling is expected to take around three to four weeks, including logging. The group said that depending on the results from the logging, the well will then be flow tested.

Managing Director of 88E Dave Wall, commented, "Commencement of drilling at Merlin-1 is now just around the corner, targeting the extension of the highly successful Nanushuk play.

Success would underpin a company making development project for our shareholders, with the proven resource at the recently acquired at Umiat Oil Field adding substantial value."

Shares in 88 Energy have risen by nearly 5% in value since the start of 2021. The stock was trading 1.05% higher this morning at 0.48p as a result of 88E’s announcement. 88E now awaits the spud of Merlin-1 while it keeps its eye on the further development of the Talitha-A well where several prospective horizons are interpreted to extend into 88E’s acreage.

88E price chart

Reasons to Follow 88E

Project Portfolio Across Alaska’s North Slope

The Alaskan explorer completed its acquisition of XCD Energy, which holds a 100% Working Interest in the highly prospective Alaskan North Slope, back in August 2020. The merged entity has formed a diversified portfolio of exploration projects on Alaska’s North Slope.   

The combined company will have increased scale, market presence along with higher funding capability and trading liquidity across the ASX and London AIM exchanges.     

The three key projects include Project Icewine, Yukon leases and Project Peregrine with the assets at various stages of development, the company previously outlined this summer.    

In late 2020, 88E was also formally re-assigned the "Area A" leases at Project Icewine meaning its working interest in around 40% of the project has increased from 30% to 75%.
For more news and updates on 88 Energy: FOLLOW

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