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July 2018

Vol. 23, No.27 Week of July 08, 2018

88 Energy suspends Icewine 2, begins HRZ farm-out process

Kristen Nelson

Petroleum News

Production testing has ended at Icewine 2 and the well was suspended June 30, West Perth, Australia-based 88 Energy said July 2, with demobilization of equipment completed over the June 30-July 1 weekend. The company said it believes results to date support potential economic viability of the HRZ shale play “and are within the range of outcomes achieved at other early stage unconventional plays, despite not achieving a flow rate that is representative of the capability of the reservoir.”

The Icewine project was developed by 88 Energy in partnership with Burgundy Xploration, which began acquiring North Slope tracts south of Prudhoe Bay in 2013. 88 Energy’s local operating company is Accumulate Energy Alaska.

Icewine 1 was drilled in 2015 and core extracted. Icewine 2 was drilled in 2017, both wells from the Franklin Bluffs gravel pad off the Dalton Highway.

The company said suspension of the well has been designed to allow future use of the wellbore, including a horizontal sidetrack with multi-stage stimulation.

More work required

88 Energy said it believes a more significant work program is required to de-risk the HRZ play further “and that the data obtained to date is sufficient to attract a farm-in partner to undertake this program,” a plan the company said is consistent with development progression “in all other unconventional resource plays.”

Work at Icewine 2 included acquisition of a more sophisticated logging suite to complement the core obtained from Icewine 1. Results included quantitatively proving overpressure of the HRZ, 88 Energy said.

Results from the well “provide the requisite data to confidently design a horizontal well with a multi-stage stimulation that can access the entire height of the formation,” the company said.

Joint venture partners are “in the process of engaging with an experienced service provider to provide state of the art analysis and quality control of the existing dataset, undertake additional work and put together an appropriate forward work program to present to potential farminees,” 88 Energy said.

- KRISTEN NELSON






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