##{"id":91083,"date":"2021-01-22T13:06:09","date_gmt":"2021-01-22T02:06:09","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=91083"},"modified":"2021-01-22T13:39:35","modified_gmt":"2021-01-22T02:39:35","slug":"spudding-just-weeks-away-at-88es-merlin-1-well","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/01\/22\/spudding-just-weeks-away-at-88es-merlin-1-well\/","title":{"rendered":"Spudding Just Weeks Away At 88E\u2019s Merlin-1 Well"},"content":{"rendered":"<p style=\"text-align:center\"><em>&#8211;The below is a company-sponsored announcement&#8211;<\/em><\/p>\n<hr \/>\n<p style=\"text-align:justify\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/88E1.jpeg\" style=\"height:524px;width:832px\" \/><\/p>\n<p style=\"text-align:justify\"><span style=\"font-size:14px\"><strong>88 Energy ((88E)) : (AIM:88E) has provided an update relating to its operations on the North Slope of Alaska.<\/strong><\/span><\/p>\n<p style=\"text-align:justify\">Today&rsquo;s update discusses 88E&rsquo;s mobilisation of snow road construction equipment to its Merlin-1 drill site.<\/p>\n<p style=\"text-align:justify\">Merlin-1 is located at 88E&rsquo;s Peregrine Project in the NPR-A region of the North Slope.<\/p>\n<p>34 miles of a total ~90 miles of the snow road to Merlin-1 have been constructed so far.<\/p>\n<p style=\"text-align:justify\">The spud of Merlin-1 remains on schedule for mid-late February 2021, which will target an independently assessed gross prospective resource of 645 million barrels.<\/p>\n<p style=\"text-align:justify\">Project Peregrine has a&nbsp;<strong>1.6 billion barrel gross mean unrisked recoverable prospective resource<\/strong>. <strong>Merlin-1 is the first to drill test <\/strong><strong>this.<\/strong><\/p>\n<p>The project is located on trend to recent discoveries, including Willow, discovered by oil super major ConocoPhillips (NYSE: COP).<\/p>\n<p><span style=\"color:black\">Willow has a resource estimate in the range of between 400-750 million barrels of oil and it is estimated that the project could be producing in excess of 100,000 BOPD.<\/span><\/p>\n<p>After completion of the scheduled Merlin-1 spud, 88E will determine whether it has the time to drill the <span style=\"color:black\">Harrier-1 well. <\/span><\/p>\n<p><span style=\"color:black\">A rig has already been contracted to the Harrier-1 well site and drilling will commence immediately after Merlin-1-schedule permitting. <\/span><\/p>\n<p><span style=\"color:black\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/88E%20in%20article%201.png\" style=\"height:432px;width:832px\" \/><\/span><\/p>\n<p><span style=\"font-size:12px\"><em>Mobilisation to Merlin-1<\/em><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">Notably, <\/span><\/span><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">88 Energy has negotiated a Project Peregrine farm-out agreement with high profile industry participant Alaska Peregrine Development Corporation LLC (APDC).<\/span><\/span><\/p>\n<p><span style=\"color:black\"><span style=\"font-family:calibri,sans-serif\">To acquire a 50% stake in Project Peregrine, APDC must contribute US$11.3 million towards the cost of the Merlin-1 well which has an estimated gross cost of US$12.6 million.<\/span><\/span><\/p>\n<p><span style=\"color:black\">Importantly, all additional costs associated with the project above the US$10 million carry will be borne equally by APDC and 88 Energy.<\/span><\/p>\n<h2><strong><span style=\"font-family:calibri,sans-serif\"><span style=\"font-size:12.0pt\">A Big Start to 2021 for 88E<\/span><\/span><\/strong><\/h2>\n<p><span style=\"color:black\">Additionally, 88E has been awarded <\/span>lease AA095899<span style=\"color:black\">, which is<\/span> highly prospective for oil and gas as several prospects on the Central North Slope side of the boundary are interpreted to extend into this area.<\/p>\n<p>It is deemed likely that a significant portion of these oil pools may be accessed without surface access within the Coastal Plain area.<\/p>\n<p><span style=\"color:black\">Promising news was also released earlier in the month in relation to the purchase of the Umiat Oil Field, which is in close proximity to Project Peregrine.<\/span><\/p>\n<p><span style=\"color:black\">Umiat is an historic oil discovery, made in 1945 in shallow Brookian (Nanushuk) sandstones, located immediately adjacent to southern boundary of Project Peregrine.<\/span><\/p>\n<p><span style=\"color:black\">88 Energy, via its wholly-owned subsidiary Emerald House LLC, entered into a Sale and Purchase Agreement with Malamute Energy, Inc and Renaissance Umiat LLC (Sellers) to acquire the Umiat Oil Field.<\/span><\/p>\n<p><span style=\"color:black\">Alongside analysts and commentators who are predicting a &lsquo;commodity supercycle&rsquo; ahead of us, 88E is also preparing for a fossil fuel recovery this year.<\/span><\/p>\n<p><span style=\"color:black\">Oil rallied to 10 month highs this month, buoyed by a looming re-opening of the global economy.&nbsp;<\/span><\/p>\n<p>This also comes as <span style=\"color:black\">Saudi Arabia made the decision to unilaterally cut production by 1 million barrels a day for February and March.<\/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 charts 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 has provided an update relating to its operations on the North Slope of Alaska<\/p>\n","protected":false},"author":1,"featured_media":91091,"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\/91083"}],"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=91083"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/91083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/91091"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=91083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=91083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=91083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}