88 Energy confirms oil in North Slope, Alaska Merlin wildcat

88 Energy Ltd, Perth has confirmed discovery of light oil at Merlin-1 in its Project Peregrine programme on the North Slope of Alaska.

Post-well evaluation of the wildcat, drilled in March, has demonstrated the presence of multiple stacked sequences in the Cretaceous-age Nanushuk formation (N20 and N18 targets), the company said. A new target, the N19 sand not previously mapped, also returned a strong hydrocarbon signature following geochemical analysis.

Geochemical analysis of the core showed the presence of a light oil with an estimated API gravity of 35-40. However, operational issues precluded sampling of the three reservoirs.

Overall, wireline analysis and core data indicate a net pay of 41 feet across the three reservoirs. 88 Energy said it also has determined the presence of moveable hydrocarbons during the post-well formation evaluation.

The target N14 horizon was not found in Merlin-1 and is now believed to lie below 5,267 feet which was the total depth of the well. Merlin-1 may be re-entered later to drill deeper and evaluate the prospective target.

88 Energy has chosen a site for a follow-up appraisal well (Merlin-2) to east of Merlin-1 where enhanced reservoir thickness and quality is expected. Merlin-2 is planned to spud during first-quarter 2022.

On the back of the Merlin-1 results, independent consultant ERCE Australia Pty Ltd has produced an updated mean unrisked prospective resource estimate for Project Peregrine of 1.6 million bbl. The estimate covers probabilistic calculations for a Merlin-1A deepened well, Merlin-2 appraisal, and two reservoirs in the Harrier prospect also scheduled for drilling in 2022.

Merlin-1 lies in the NPR-A region of the North Slope. 88 Energy is operator of the well with 100% interest.

Source: Oil & Gas Journal