Premier Oil announced on 7 April 2020 that it plans to exit the Icewine Area A joint venture, operated by Accumulate Energy (a 100% owned subsidiary of 88 Energy) on the North Slope of Alaska once regulatory approvals have been received.Â  The move comes on the heels of 88 Energy's announcement that the Charlie 1 well in Area A discovered gas condensate.  In a 23 August 2019 press release, 88 Energy announced it had concluded a farmout agreement with Premier Oil. Under the terms of the agreement, Premier will fully fund Charlie 1 up to USD 23 million in return for acquiring a 60% in Icewine Area A. Accumulate will retain 30% working interest with the remaining 10% held by Burgundy Xploration. At the conclusion of the work program, Premier will have the option to assume operatorship of Icewine Area A. The company will have the additional option to obtain 50% working interest in Areas B and C for USD 15 million if the well is successful.  Background Information  The Charlie 1 (API 502232003300) exploration well in state lease ADL 393380 (Sec 21, T4NR9E, Umiat Meridian) discovered gas condensate in the Torok formation in both the Middle and Lower Stellar targets and will now be plugged and abandoned based on a 7 April 2020 press release by 88 Energy.  While no flow tests were undertaken, mainly due to time constraints given the length of the remaining season, gas condensate samples were retrieved from the Torok formation at 10,506 ft (3,202 m) and 10,656 ft (3,248 m). A water sample was retrieved from the Indigo target in the Schrader Bluff formation. An attempt was made to sample the Lower Lima target in the Seabee formation, but was unsuccessful due to insufficient reservoir quality. Mud gas observed while drilling the Seabee, which was the formation where "live oil" was observed across the shakers in Malguk 1, indicated the hydrocarbons there are heavier than in the Torok. Logs and sidewall cores were acquired over the HRZ formation, which remains a viable target according to the company.  Charlie 1 targeted the Upper Cretaceous age Schrader Bluff, Seabee and Torok formations. It was designed as a step out appraisal to the Malguk 1 well drilled by BP in 1991. Malguk 1 encountered oil shows but was not tested at the time due to operational complications. With revised petrophysical analysis and 3D seismic acquired in 2018, Accumulate identified what it considered to be bypassed pay in Malguk 1. Charlie 1 was positioned to intersect four bypassed zones from Malguk 1 in addition to three other prospective zones. Gross, unrisked mean prospective resources were estimated at 1.6 Bbo.
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