88 Energy indicated in late November 2019 that it has finalised its farm-out agreement with Premier Oil for 60% WI in Area A of the conventional Project Icewine acreage, sited in the Alaska North Slope Basin. The transaction was formally approved by the Division of Oil & Gas on 20 November 2019 and has an effective date of 1 October 2019. Area A encompasses the Malguk 1 discovery, sited in and drilled by BP in March/April 1991 on previous ADL 373006 (current ADL 393382). The well encountered 77m of light oil pay in turbidite sands in the Torok Formation, within the Brookian play. The well has yet to be tested. Premier estimates an accumulation of more than 1 Bbo (in place), according to original well data and its evaluation of the existing 3D dataset. There is also significant upside in the shallower Schrader Bluff Formation, which has yet to be explored in a play, with similarities to the Pikka/Horseshoe trend. 88E indicated in late August 2019 that the 'western play fairway' contains some 720 MMbbls of net prospective resources (2.4 Bbbls gross), the 'central play fairway' some 193 MMbbls of net prospective resources (373 MMbbls gross) and the 'eastern play fairway' with some 96 MMbbls (124 MMbbls gross). Under the terms of the Sale and Purchase Agreement, Premier will pay the full costs of an appraisal well up to a total of US$ 23 million to test the Malguk 1 discovery reservoir. This new apprisal well is planned to be both drilled and tested in Q1 2020. Following completion of the agreement, Premier Oil now holds 60% WI in Area A of the conventional Project Icewine acreage. The remaining Area A equity is shared between Burgundy Xploration (88E's Joint Venture partner in Project Icewine - 10% WI) and Accumulate Energy Alaska (88 Energy subsidiary - 30% WI).
88 Energy indicated in late November 2019 that it has finalised its farm-out agreement with Premier Oil for 60% WI in Area A of the conventional Project Icewine acreage, sited in the Alaska North Slope Basin. 