88 Energy has begun drilling the eagerly anticipated Charlie-1 appraisal well in Alaska.
Four year wait
This brings to fruition a four-year target for 88 Energy, which had initially acquired 2D seismic over its Project Icewine acreage in 2016 and had targeted a drilling program for Charlie-1 ever since.
In the interim, 88 Energy reprocessed legacy 2D seismic in 2017, increased its acreage and shot 3D seismic in 2018 before farming down last year.
88 Energy managing director Dave Wall said, ‘’A prospect of this calibre in a frontier region requires significant time and effort to come to fruition and we are optimistic that success is just around the corner.’’
The Charlie-1 appraisal well is as a step out appraisal of a well drilled in 1991 by BP Exploration (Alaska) Inc called Malguk-1 which encountered oil shows.
The total Gross Mean Prospective Resource across the seven stacked targets to be intersected by Charlie-1 is 1.6 billion barrels of oil (480 million barrels net to 88E).
88 Energy believes each of these targets could be a potential standalone development and, when combined, the aggregate gross mean prospective resource potential is 1.6 billion barrels of oil, 480 million barrels of which is net to 88E given its retained 30% interest.