The numbers appear to be stacking up for 88 Energy after it successfully reached total depth in the Merlin-2 appraisal well in Alaska and struck oil. It is now waiting on wireline logging results to confirm whether it will flow to surface from the target Nanushuk Formations.
The company said logging would take 7-10 days to complete at its 100 per cent owned well, located in the NPR-A region of the prolific North Slope of Alaska.
It also said all three N20, N19 and N18 target reservoirs in the Nanushuk were intersected, adding logging while drilling, or “LWD” data and physical cuttings were collected throughout the Merlin-2 program.
The logs showed thicker target intervals were intersected than in the original Merlin-1 discovery well with oil shows seen in daylight, or white light conditions in the three target Nanushuk reservoirs. Merlin-1 was a non-commercial oil discovery.
The company received further encouragement with fluorescent oil shows under ultraviolet light indicating hydrocarbons in Merlin-2, that is targeting a net unrisked mean prospective resource of 652 million barrels.
88 additionally reported significant mud gas peaks across all target sequences in the Nanushuk, with notable increases in the heavier C2-C5 hydrocarbon compounds in each horizon.
According to the company, a sophisticated wireline logging program will now be run designed to confirm reservoir quality and determine if hydrocarbons will flow to surface.
The wireline logging program will consist of multiple runs, including fluid sampling and flow potential measurements, side wall cores and image logs.
The Arctic Fox rig has also exceeded expectations in drilling performance, with the well reaching the 7334-foot TD safely and efficiently, the company added.
88 Energy Managing Director, Ashley Gilbert, said: "The results to date from the Merlin-2 well are encouraging. Initial indications are that all three target reservoirs in the Merlin-2 well were penetrated, demonstrated elevated gas readings, and observation of cuttings samples have revealed oil shows over the target intervals."
"We look forward to results from the pending wireline program, which is set to be conducted over the next 7 to 10 days. Following completion of this program, we hope to be able to confirm the presence of mobile hydrocarbons, and a discovery, at Merlin-2.”
Investors will be keenly anticipating the pending news from 88 to see if its technical success can translate into commercial reality and hopefully match other discoveries on the Alaskan North Slope.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
