88 Energy in consultation with its partner, Burgundy Xploration, has finalised the well design for Icewine#2, located onshore North Slope of Alaska.
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
Managing director Dave Wall said: "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."
At 9:29am: (LON:88E) 88 Energy Ltd share price was -0.7p at 2.6p