##{"id":90541,"date":"2020-12-08T14:56:38","date_gmt":"2020-12-08T03:56:38","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=90541"},"modified":"2020-12-08T14:56:39","modified_gmt":"2020-12-08T03:56:39","slug":"88e-preparing-for-maiden-drilling-of-1-6bn-barrel-north-slope-project","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/12\/08\/88e-preparing-for-maiden-drilling-of-1-6bn-barrel-north-slope-project\/","title":{"rendered":"88E Preparing For Maiden Drilling Of 1.6Bn Barrel North Slope Project"},"content":{"rendered":"<p style=\"text-align:center\"><em>&#8211;The below is a company-sponsored announcement&#8211;<\/em><\/p>\n<hr \/>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/88E%20-%20Image.jpeg\" style=\"height:555px;width:832px\" \/><\/p>\n<p><strong>88 Energy Ltd ((<span style=\"color:windowtext\"><span style=\"font-family:calibri,sans-serif\"><a href=\"https:\/\/www.nextinvestors.com\/company\/details\/88e\/\">88E<\/a>))<\/span><\/span>; AIM:88E) this week executed its drilling contract to drill the Merlin-1 and Harrier-1 wells for Project Peregrine on the North Slope of Alaska.<\/strong><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">In fact, the Alaska North Slope is home to the US&rsquo;s largest two oil fields and it hosts some of the world&rsquo;s largest discoveries over recent years, featuring both onshore and conventional (not shale) with enormous potential.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">With excellent infrastructure and low royalty rates, it is a good place to do business.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">Project Peregrine has a&nbsp;<strong>1.6 billion barrel<\/strong>&nbsp;mean unrisked recoverable prospective resource, located on-trend to recent discoveries, including one by oil super major ConocoPhillips (NYSE: COP).<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">The project has multiple compelling targets, that are shallow to drill test &#8211; which means relatively low-cost drilling.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">An independent resource assessment arrived at an unrisked prospective oil resource of over 1.6 billion barrels at Project Peregrine, across three prospects, two in the Nanushuk formation (Merlin and Harrier), with a Harrier Deep prospect located in the deeper Torok formation. <\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">Recent further seismic analysis increased the company&rsquo;s confidence at the Project, which identified several similarities between 88E&rsquo;s Merlin and Harrier prospects and existing discovered oil fields nearby.<\/span><\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/88E%20-%20in%20article%20.png\" style=\"height:289px;width:832px\" \/><\/p>\n<p><em>* Please refer to the XCD&#039;s (currently being compulsorily acquired by 88E) ASX release dated&nbsp;20 May 2020 for full details with respect to the Merlin Lead Prospective Resource estimate, associated risking and applicable Cautionary Statement<\/em><\/p>\n<h2>Merlin-1 drilling is imminent<\/h2>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88E is on track for its scheduled spud date of the Merlin-1 well February 2021, which is planned to be drilled to a total depth of 6,000 ft, and aims to intersect the shallower Nanushuk topset horizons listed above. <\/span><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88E recently confirmed a farm-out partner who will contribute US$11.3M toward the cost of the Merlin-1 well, and earn 50% of the Project. The estimated gross cost is US$12.6M. <\/span><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88E&rsquo;s farm-out partner is the Alaska Peregrine Development Corporation LLC (APDC), a high calibre group of private US individuals that have experience in oil and gas, including owning businesses that directly operate in the sector.<\/span><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88E only needs to contribute US$1.3M, representing its 50% ownership share over and above a US$10M carry. All additional costs associated with the project above the US$10M carry will be borne equally by both and 88E.&nbsp; <\/span><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">This is a good deal for a small-cap oil explorer like 88E, as it allows the company to retain 50% of the upside of drilling success, without having to outlay a large sum for drilling. It is close to a 2 for 1 deal for 88E investors and effectively gives 88E a low-cost shot at a potentially large oil discovery early next year.<\/span><\/span><\/p>\n<p>88 Energy has executed a rig contract with All American Oilfield, LLC for the use of Rig 111 to drill the Merlin-1 and Harrier-1 wells at its Project Peregrine in the NPR-A region of the North Slope of Alaska.<\/p>\n<p><span style=\"font-family:calibri,sans-serif\">Managing director Dave Wall said of the spud, &quot;The farm-out was finalised late last week and now the rig contract is executed.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">&quot;Drilling at Project Peregrine is moving ahead as planned and we are only three months away from spud on what will be a potentially company-making prospect for our shareholders.&rdquo;<\/span><\/p>\n<h2>Pantheon&rsquo;s spud could propel 88E forward<\/h2>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88E operates the majority of the vast 475,000 acre Project Icewine, targeting oil on the world class North Slope of Alaska. The company&rsquo;s goal is to build a successful exploration and production company that delivers material benefits to its shareholders and contributes to the development of the regions in which it works.<\/span><\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">Within the region is the &pound;211 million (AU$380) Pantheon Resources (AIM: PANR), which will spud its Talitha-A well, located close to the northern border of the 88E central acreage position, in January.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">Several of the prospective horizons in Talitha-A are interpreted to extend into 88E acreage as indicated below.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/Picture%202(2).png\" style=\"height:345px;width:832px\" \/><\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">As Pantheon&rsquo;s drilling is ahead of the Merlin-1 spud, 88 Energy&rsquo;s share price could receive some support for 88E, increasing the perceived value of Project Icewine&rsquo;s real estate.<\/span><\/p>\n<h2>Support for 88E is already strong &nbsp;<\/h2>\n<p><span style=\"font-family:calibri,sans-serif\">88E has found strong support in the December quarter, with liquidity in the stock building as interest in its drilling plans grows.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">The company was trading between A$0.005 and A$0.006 in late September, and since then has raised A$10M at A$0.006 per share.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">The stock has traded as high as A$0.009 in late November.<\/span><\/p>\n<p><span style=\"font-family:calibri,sans-serif\">News of the spud and farm-out should provide further momentum with significant near-term catalysts in the lead up to the spudding of the Merlin-1 well. A significant oil discovery would drive a substantial rerating of 88E. <\/span><\/p>\n<hr \/>\n<p><em>Earlier today the corporate announcement above was publicly released. FNArena is acting as a partner in&nbsp;distribution to broaden the reach. No journalists have been involved in the re-publication of this announcement.<\/em><\/p>\n<p><strong>Technical limitations<\/strong><\/p>\n<p><strong><em>If you are reading this story through a third party distribution channel and you cannot see illustrations included<\/em>, <em>we apologise, but technical limitations are to blame.<\/em><\/strong><\/p>\n<p><em>Find out why FNArena subscribers like the service so much: &quot;<a href=\"http:\/\/www.fnarena.com\/index4.cfm?type=dsp_newsitem&amp;n=29EB960D-9DFF-C00E-7F6B464E5D52E250\">Your Feedback (Thank You)<\/a>&quot; &#8211; Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n<p><em>FNArena&nbsp;is proud about its track record and past achievements: <a href=\"https:\/\/www.fnarena.com\/index.php\/2018\/10\/03\/rudis-view-ten-years-on-the-world-is-still-turning\/\">Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SPONSORED: 88 Energy Ltd this week executed its drilling contract to drill the Merlin-1 and Harrier-1 wells for Project Peregrine on the North Slope of Alaska<\/p>\n","protected":false},"author":1,"featured_media":90543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/90541"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=90541"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/90541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/90543"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=90541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=90541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=90541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}