Independent 88 Energy Ltd. said Aug. 22 it has a new joint venture partner for its conventional Icewine project on Alaska's North Slope. London-based independent Premier Oil (LON:PMO) signed a sale and purchase agreement with 88 Energy and Burgundy Xploration to farm-in for a 60% interest in Area A, containing the Malguk-1 discovery well drilled by BP in 1991, which discovered but never tested 251 feet of light oil pay in turbidite sands in the Brookian Torok formation.
Premier will pay the full costs of an appraisal well, Charlie-1, up to a total of US$23 million to test the reservoir deliverability of the Malguk-1 discovery. The well will be drilled and tested in the first quarter of 2020.
Premier estimates an accumulation of more than 1 billion barrels of oil in place, based on the original well data and its evaluation of the existing 3D dataset.
On successful completion of the work program, Premier will have the option to assume operatorship.
Should the Charlie-1 well prove successful, Premier has the option to earn a 50% working interest in Areas B or C through spending US$15 million.
Premier Oil's recently released first half 2019 financial results showed an after tax profit of US$121 million, free cash flow of US$182 million, and worldwide production of approximately 8,400 barrels of oil equivalent per day.
- KAY CASHMAN
See story in Aug. 25 issue, available online Friday, Aug. 23, at www.PetroleumNews.com
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