88 Energy farms out half interest in Alaskan Project Peregrine

Perth-based 88 Energy Ltd has farmed out a 50% interest in its Project Peregrine in the NPR-A region of the North Slope of Alaska to Alaska Peregrine Development Company LLC (APDC). 88 Energy will retain a 50% stake.

APDC will contribute US$11.3 million to the cost of the upcoming Merlin-1 wildcat which 88 Energy estimates will cost US$12.6 million to drill.

The well, expected to spud during mid- to late-February next year, is the first in a two-well programme to evaluate the shallow target Nanushuk reservoir. Merlin lies directly north of the Umiat oil find estimated to contain more than one billion bbl of oil in place.

All American Oilfield LLC’s light-weight workover rig (Rig 111) has been contracted for the programme. The unit can be transported off-road in pieces by tundra-safe track vehicles along snow trails and gravel roads and obviates the need for the construction of an ice road to the location.

The second well, Harrier-1, will follow immediately after Merlin-1.

Drilling depths of 6,000 feet are anticipated to reach the reservoir formation which carries multiple conventional targets.

The Peregrine leases lie 35 km south of the ConocoPhillips oil discovery at Willow, which has an estimated 450-800 MMboe.

APDC is as a special purpose investment vehicle organised for Project Peregrine. Its members are a consortium of private US entities managed by individuals experienced in oil and gas, some of whom own businesses operating on the North Slope.

In a separate release, 88Energy said it has reduced its lease area for its Icewine project in the central North Slope by 25%. The company is now focusing on farm-out negotiations for remaining leases around the recently drilled Charlie-1 well.

Source: oil & Gas Journal