- 88 Energy (88E) is providing an update on its Umiat oil field, announcing an extension and the identification of additional upside at the project
- 88E says analysis and studies conducted with the Merlin-1 post well testing found the potential for bypassed pay and extra reservoir sands
- The energy stock also confirmed it will defer its Umiat Year 2 unit well commitment by an additional 24 months to late August 2023
- Strike says the extension will allow it more time to optimise its full field development plan and evaluate potential synergies with Project Peregrine
- Company shares are up 13.6 per cent at 5 cents each at 12:08 pm AEST
88 Energy (ASX:88E) has provided an update on its Umiat oil field, announcing a two-year extension and the identification of additional upside at the project.
Located in the North Slope of Alaska, 88E acquired the oil field via its subsidiary, Emerald House, earlier this year.
In a market release the company revealed that further studies conducted with the Merlin-1 post well testing and analysis had identified additional upside.
In particular, pressure analysis suggests there was potential for bypassed pay in the footwall of the Umiat structure, while seismic attribute analysis suggested there may be additional reservoir sands in the footwall as well.
The news comes as the Bureau of Land Management approves 88E’s request for a 24-month extension on its Umiat Year 2 unit well commitments, as well as future commitments.
The extra two years will help 88E and its subsidiary process all the historical data for the oil field, which was handed over as part of the initial sale.
In addition to this, the energy business said the extension would allow it more time to optimise its full field development plan and evaluate potential synergies with Project Peregrine.
Following today’s update, shares in 88E were trading up 13.6 per cent at 5 cents each at 12:08 pm AEST.