88 Energy kick-starts drilling at Charlie-1 well in Alaska
The AIM and ASX-listed energy firm had previously said that it expected spudding to occur around late February.
88’s programme, which is a step out appraisal of a 1991 BP exploration well named Malguk-1, is partnered with to test a potentially significant discovery.
Charlie-1 will intersect seven stacked prospects, four of which are interpreted as oil bearing in Malguk‑1 and are therefore considered appraisal targets.
Together, the targets are estimated to hold 1.6 billion barrels of oil, or 480 million barrels net to 88E.
Shares in 88 Energy were trading 15% higher at 1.15p during Tuesday trading.
"The Charlie-1 well has been four years in the making for 88 Energy, beginning in 2016 when we first acquired 2D seismic over our Project Icewine acreage,” said Dave Wall, Managing Director of 88 Energy.
He added: “Since that time, the Company has reprocessed legacy 2D seismic (2017), undertaken a targeted acreage expansion and then shot modern 3D seismic (2018) before farming down (2019).
A prospect of this calibre in a frontier region requires significant time and effort to come to fruition and we are optimistic that success is just around the corner.”
88 raised A$5 million earlier in the year in January to help fund the appraisal well, in addition to the US$23 million in funding from Premier Oil under a farm-out agreement.
Following the group’s confirmation of drilling, flow testing is anticipated to conclude in April 2020.
Follow News & Updates from 88 Energy here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.