Mining, Oil & Gas News & Blog

The company has raised A25mln, and has finalized the purchase of 170,000 acres, we've completed the acquisition of some 2D seismic and are in the throes of processing that.

Wall says there are a few milestones to reach in the lead up to the spudding of the well in Q1 2017, including the potential for a small farm out. "The first batch of seismic results will be in less than 4 weeks, in eight weeks from now we will have the larger of those two batches with our own interpretation and then independent resource estimates which will come out sometime in October" he says.

Last months the company said permitting is well on track to be completed before the spud of the Icewine#2H well earmarked for the first quarter of 2017.

The well would be the second on 88 Energy's acreage in Alaska, which now stands at 210,250 acres net to the firm, after the first well showed "excellent" core results, according to the group.

The oil firm said it had identified several suitable rigs for the drilling of the second well and the official tender process for all major contracts began this month (July).

Permitting remains on track for completion long before the scheduled spud date next year.

In addition, interpretation of seismic data collated near to the Icewine#2H well is expected next month (August), while in September the group expects to receive the 2D data-set over the majority of the Icewine acreage.

"Early observations indicate that the excellent source reservoir rock characteristics in the HRZ and consequent high potential flow rates should significantly improve the break even price for Project Icewine in the success case scenario," it said in the quarterly update today.

In April this year, 88 has raised A$25mln in a strongly oversubscribed placing to  appraise and evaluate results so far while planning for the second exploration well.

88 Energy has a 78% working interest and operates the onshore area of the North Slope.

With its joint venture partner Burgundy Xploration, it has identified three highly prospective play types that are likely to exist on the Project Icewine acreage - two conventional and one unconventional.

There is a unique fiscal system in Alaska, which allows for up to 75% of 1H2016 exploration expenditure to be rebated in cash.

The firm ended the three months to June 30 with net cash reserves of A$20.3 million.

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