Charlie No. 1 well plans, JV on track
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88 Energy Ltd., via its 100% owned subsidiary Accumulate Energy Alaska, has booked the Nordic 3 rig for the upcoming drilling of its Charlie No. 1 appraisal well in its North Slope Icewine project.
Accumulate is headed by general manager of operations Erik Opstad, a state of Alaska certified professional geologist, who has worked the North Slope for 34 years, including years with BP in various roles.
In an Oct. 15 update, the ASX listed Australian company said operational activity for Charlie No. 1 was progressing and that it planned to spud the well in February and finish flow testing in April.
Charlie No. 1 is on state oil and gas lease ADL 393380, west of the existing Icewine wells, and is part of a multiyear program beginning this winter. The 34-mile tundra ice road to the project will start at Mile Post 38.67 of the Dalton Highway.
88 Energy also reported that its farm-out with Premier Oil Plc, its joint venture partner in the Icewine project, is expected to be complete before the end of November.
Captivate Energy Alaska, another wholly owned subsidiary of 88 Energy that is headed by Anchorage-based Opstad, used the Nordic 3 rig last winter for the drilling of the Winx No.1 exploration well in its Western Block project on a lease near the Horseshoe 1/1A well lease. The Horseshoe well was a 2017 oil discovery by operator Armstrong Energy and partner Repsol and is currently operated by Oil Search.
Progress on permitting“Significant progress” has been made on the permitting front, 88 Energy said in its update, with only two of the key permits now outstanding - the plan of operations and permit to drill, which are both “in the process of being finalized and approved.” (The lease plan of operations was submitted in early August; the Alaska Department of Natural Resources’ Division of Oil and Gas is taking public comments on the proposal through Oct. 31. See story in the Oct. 6 issue of Petroleum News.).
Additionally, 88 Energy said that tendering and finalization of contracts for equipment and services needed for Charlie No. 1 are advancing as planned.
The well has been designed as a step out appraisal of the Malguk-1 well drilled in 1991 by BP, which encountered oil shows with elevated resistivity and mud gas readings over multiple horizons during drilling but was not tested due to complications towards the end of operations.
Malguk-1 was also drilled using vintage 2D seismic, which 88 Energy said was “insufficient to adequately determine the extent” of any of the prospective targets encountered.
88 Energy did a revised petrophysical analysis, which identified what it interpreted as bypassed pay (reportedly 251 feet of light oil pay in turbidite sands in the Brookian Torok formation) in the Malguk-1 well. 88 Energy also acquired modern 3D seismic in 2018 over the area in order to determine the extent of the oil accumulations.
Charlie No. 1 will intersect seven stacked prospects, four of which are interpreted as oil bearing in Malguk-1 and are therefore considered appraisal targets, 88 Energy said.
Under the farm-out agreement, Premier Oil is picking up the cost of drilling (up to US$23 million).
According to 88 Energy, the total gross mean prospective resource across the seven stacked targets that Charlie No. 1 will intersect is 1.6 billion barrels of oil (480 million barrels net to 88 Energy).