- 88 Energy (88E) has seen a 25 per cent rise in its share price today after an operations update for its projects in Alaska
- The Merlin-1 well, within the Project Peregrine, is on track to spud in February
- Following this, the Harrier-1 well will be drilled and potentially flow tested
- In December, 88 contracted a rig from fellow Alaskan oil and gas company, All American Oilfield, to drill the wells
- Additionally, the Talitha-A well is expected to spud this month which is close to the northern border of 88E’s central acreage position
- Company shares ended the day up 25 per cent, closing at 1 cent
88 Energy (88E) has seen a 25 per cent rise in its share price today after an operations update for its projects in Alaska.
Project Peregrine
Pleasingly, spudding the Merlin-1 well at the Project Peregrine remains on track for February.
If this goes to schedule, the Harrier-1 well will be drilled right after Merlin-1 has been spudded and, potentially, flow tested.
In preparation for the spud and drilling, 88 Energy began construction of the snow road in the second half of December last year.
In December, the company contracted fellow Alaskan oil and gas company All American Oilfield’s Rig 111 to drill the Merlin-1 and Harrier-1 wells. The rig is currently being reassembled before it’s handed over and mobilised to the site.
“It is now full steam ahead with operations prior to the scheduled spud of the first well, Merlin-1, at Project Peregrine in six to eight weeks,” Managing Director Dave Wall said.
Project Icewine
Before the Merlin-1 well is spudded however, the Talitha-A well is expected to spud this month.
Pantheon Resources will drill the Talitha-A well, which is close to the northern border of 88E’s central acreage position. Interestingly, multiple prospective horizons of the well are believed to extend into 88E’s acreage.
Within Project Icewine is the Charlie-1 well, where gas condensate in the Torok Formation was discovered last year.
The company has announced an in-house analysis for commercialisation options, which include local power generation, compressed natural gas and the potential for conversion to hydrogen. It’s expected this work will proceed to the feasibility stage at some point this year.
“Whilst the Peregrine drilling forms the focus, there is plenty of activity on other fronts that we look forward to providing updates on throughout the course of 2021,” Dave concluded.
Company shares ended the day up 25 per cent, closing at 1 cent.