88 Energy sets February date for Merlin-2 well

Alaska-focused oil explorer 88 Energy has tipped a February spud date for its Merlin-2 well in the American state of Alaska, after announcing it has commissioned a rig, is building a snow road and is close to regulatory approval for the 8000-foot follow-up to 2021’s Merlin-1 oil discovery. The discovery well intersected 12.5 metres of pay zone across three reservoir intervals.

The company said Alaska’s Bureau of Land Management was in the final stages of reviewing the Merlin-2 permit to drill and is on schedule to be issued ahead of the rig’s mobilisation.

Commissioning the Arctic Fox rig has commenced, as has construction of the single lane snow road to the Merlin-2 location, with management saying there were good conditions and construction of the snow road was on schedule.

Merlin-2 is targeting an unrisked mean of 652 million barrels in the highly prospective North Slope acreage that were intersected in the successful Merlin-1 well.

88 Energy described Merlin-2 as one of the largest onshore opportunities around the world to be drilled in 2022 and one of only two wells to be drilled in Alaska’s North Slope neighbourhood this year.

The company has given the well a geological chance of success of 56 per cent, a big number from an industry accustomed to more conservative odds with 88 Energy saying it was targeting a thicker, higher energy pay zone.

It said the necessary equipment for a 10-day production test was on standby in the event the testing is a success.

The Merlin wells sit within Project Peregrine that is located in the North Slope and encompasses approximately 195,000 contiguous acres. It is situated on-trend to recent discoveries in a newly successful play type in topset sands in the Nanushuk formation. 88 Energy has a 100 per cent working interest in the project.

The company is the operator of over 440,000 net acres in total across the Alaskan regions over four highly prospective project areas: Project Icewine, Yukon Leases and Project Peregrine and the Umiat oil field.

Merlin-2 is shaping up to be one of the high-impact wells the oil and gas investment community will be watching this year and a positive outcome will mean it is game on for the ASX-listed company.

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