Procurement News Notice |
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| PNN | 5650 |
| Work Detail | 88 Energy Limited (ASX, AIM: 88E) is pleased to provide an update on Project Icewine, located onshore North Slope of Alaska. Highlights Finalisation of Well Design for Icewine#2 Well design revised and finalised as vertical completion with multi-stage stimulation Optimised to achieve program objectives at reduced cost 88E fully funded for Icewine#2 from current cash position New design will test both HRZ/HUE shales with potential for significant resource upgrade Interpretation of inline/crossline 2D in Franklin Bluffs Area progressing well Subtleties of seismic stratigraphic plays clearly imaged on new 2D extracts Progradational sequence evident, potential basal floor fan, amplitude anomaly Processing of 2D data from recently acquired vibroseis over two thirds of Project Icewine acreage nearing completion Data is of high resolution with excellent lateral reflector continuity throughout the stratigraphic sequence Well Design Complete 88 Energy, in consultation with its partner, Burgundy Xploration (together the 'Joint Venture'), has finalised the well design for Icewine#2. Upon strategic review of the desired objectives for Icewine#2, the Joint Venture has concluded that a vertical well with a multi stage stimulation is superior to the initially proposed lateral well. The vertical well design will allow the Joint Venture to: test production potential of entire HRZ/HUE interval with potential for resource upgrade HRZ remains premier reservoir and primary target enhance dataset for landing zone selection of future laterals decrease drilling risk associated with a more complex lateral completion increase availability of suitable rigs and result in a more competitive tender process lower the estimated cost of the well completion by ~US$5m, meaning that 88 Energy is fully funded for the costs associated with Icewine#2 from its current cash position Preliminary 2D Seismic Results Interpretation of the processed inline/crossline 2D seismic data (purchased as extracts from 3D seismic acquired in 2015 using dynamite) is at an early stage, but is progressing well due to the excellent data quality. Initial observations indicate the presence of seismic stratigraphic features, consistent with a potential basin floor fan play fairway. Further seismic interpretation and geological analysis is required to evaluate the exploration potential of this fairway, which could lead to the maturation of an attractive drilling portfolio. In addition, processing of the 2D data acquired this year by 88 Energy using vibroseis, over approximately two thirds of the Project Icewine acreage, is nearing completion. Initial observations indicate data quality of the same calibre as the 2D extracts referred to above. Interpretation remains on schedule to commence in September 2016, with results to follow several weeks later. Managing Director of 88 Energy Limited, Dave Wall commented: 'The revision to the well design has resulted in a best of both worlds scenario for 88 Energy and its shareholders. We now have a more efficient, lower cost outcome that optimises achievement of the operational objectives targeted by the Icewine#2 well. Additionally, we are highly encouraged by the initial results from the 2D seismic at this very early stage of interpretation.' |
| Country | United States , Northern America |
| Industry | Oil & Gas |
| Entry Date | 15 Oct 2016 |
| Source | http://www.oilvoice.com/n/88-Energy-finalises-well-design-for-Icewine-2-announces-preliminary-seismic-results/c8160d25c01b.aspx |
