88 Energy’s (LON: 88E) share price is up on Monday after the company announced that the Merlin-1 well has confirmed light oil.
The AIM-listed company said that the Merlin-1 post well evaluation successfully demonstrated oil in the N20 and N18 targets. In addition, a new target (N19) that was not previously mapped returned a strong hydrocarbon signature following geochemical analysis.
Wireline analysis and core data correlate to 41 feet of net log pay across the 3 reservoir intervals.
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The geochemical analysis determined oil with estimated API gravity between mid-30 to low-40 API (light oil).
88 Energy Managing Director, Ashley Gilbert, commented: “We are thrilled with the results from the Merlin-1 exploration well. This is the best well we’ve drilled on the North Slope of Alaska to date, with light oil detected in the Nanushuk across three separate horizons.
“Whilst we have a lot more work to do, the Merlin-1 well has confirmed an active petroleum system in the Peregrine acreage. Results of this significance, together with the magnitude of the opportunity, merit a pace of evaluation that facilitates further drilling and seismic in upcoming winter seasons.
“The company is advancing planning for an appraisal well following the Merlin-1 well, which is scheduled for the Alaskan winter drilling window in Q1 2022.”
88 Energy’s share price has climbed 15.91% to 0.051p following the news.
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