Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
27 Feb 2023drilling progress report● Neutral
Ice pad for Hickory-1 is nearly complete and rig mobilisation is about to start, with spud still on track for early March. Surface hole to 3,500 ft takes up to two weeks, then about two more weeks to the 12,500 ft target depth. No new results.
6 Feb 2023drilling scheduled▲ Good
The Alaska regulator approved the Permit to Drill for Hickory-1, clearing a key approval flagged earlier. Ice-pad construction starts and the rig mobilises mid-February, with spud on track for early March. Cost is about US$13.5m gross (about US$10m net to 88E).
5 Sept 2022drilling scheduled▲ GoodMajor
Interpretation of the Franklin Bluffs 3D seismic is complete and 88E has chosen the Hickory-1 location for a 1H 2023 well, vertical to about 12,500 ft to test four reservoir units. Anomalies could indicate oil or good reservoir. Permitting has started and approvals are still needed.
23 Aug 2022resource reserve update● Neutral
88E re-issues the Icewine East prospective resource table: 1,030m barrels gross mean unrisked, 647m net, matching the 10 August figures. It clarifies Icewine East (Lee Keeling) and Icewine West (ERCE, Nov 2020) are two separate estimates. It adds no new volumes.
10 Aug 2022resource reserve update▲ GoodMajor
Independent estimate puts Icewine East's maiden gross mean unrisked prospective resource at 1.03bn barrels (647m net to 88E), fulfilling the resource update promised for 1H 2022. It is prospective, not discovered, and a well is planned for 2023.
10 May 2022resource reserve update▲ Good
Third-party mapping confirms all Pantheon reservoir units extend onto Icewine East. Re-evaluation of Icewine-1 shows comparable or better reservoir quality in some units than Pantheon's oil-flowing zones. An independent resource certification is expected mid-2022.
8 Apr 2022resource reserve update▲ Good
Preliminary third-party mapping suggests the play areas where neighbour Pantheon has flowed oil extend onto 88E's Icewine leases (~75% WI). A resource update is due Q2 2022, and farm-in talks with a third party continue, with no binding deal guaranteed.
30 Mar 2022drilling result▼ BadMajor
Merlin-2 wireline work found the reservoir too tight to recover fluid samples, so no production test will be run. Porosity and permeability look similar to Merlin-1. The well will be plugged, and 3D seismic and the Harrier-1 prospect will be assessed. Management called it disappointing.
23 Mar 2022drilling result▲ Good
Merlin-2 reached total depth of 7,334 feet on 22 March 2022. All three Nanushuk targets showed oil shows and elevated gas, and a 7-10 day wireline program was to confirm whether mobile hydrocarbons were present.
17 Mar 2022drilling progress report● Neutral
Merlin-2 surface hole was drilled to 2,005 feet, cased and pressure-tested, on plan. Drilling ahead to the targets is imminent, with total depth of about 8,000 feet expected within up to two weeks, then five to seven days of wireline logging.
9 Mar 2022drilling spud▲ GoodMajor
The Merlin-2 appraisal well began drilling at 7pm on 7 March 2022 (Alaska time), targeting 652 million barrels unrisked. Drilling goes to about 8,000 feet, roughly five weeks in total. Flow testing depends on wireline results, approvals and weather.
4 Mar 2022resource reserve update▲ Good
Pantheon's Talitha-A well, 2.8 miles north of Icewine, recovered light oil in 2022 tests. 88E says the same targets extend into its acreage and will fold the results into an updated Icewine resource estimate in the first half of 2022.
1 Mar 2022drilling progress report● Neutral
The Arctic Fox rig has been mobilised to site and Merlin-2 spud is set for the week of 7 March 2022. The well will be drilled to 2,000 feet first, then to 8,000 feet, about five weeks in total. Flow testing depends on wireline results, approvals and weather.
17 Jan 2022drilling progress report● Neutral
Merlin-2 Permit to Drill is in final BLM review, snow road construction and rig commissioning have started, and spud stays on track for February 2022. The company notes media reports of a letter to the BLM from environmental group Center for Biological Diversity.
6 Dec 2021drilling progress report▲ Good
Merlin-2 preparations are on track: snow road work starts before year-end, the Permit to Drill is expected around year-end, and Arctic Fox rig commissioning is set for January, with spud in February 2022. A contractor will take 407.65m shares at A$0.026 (up to US$7.5m of invoices).
24 Nov 2021drilling scheduled▲ Good
The Merlin-2 location is chosen from three permitted sites, east and downdip of Merlin-1, where thicker, better-quality reservoir is expected. Spud remains on track for February 2022, with a production test planned subject to wireline results and approvals.
16 Aug 2021resource reserve update▲ GoodMajor
Merlin-1 post-well review confirms light oil (mid-30s to low-40s API) in the N20 and N18 targets, plus a new N19 sand, with 41 feet of net log pay. Peregrine prospective resource is now about 1.6bn barrels; Merlin-2 appraisal well planned Q1 2022, 56% chance of success.
14 July 2021drilling result▲ Good
The remaining 13 Merlin-1 core trims added 5 more hydrocarbon confirmations, so 7 of 18 trims in total so far (the quarterly report later counts 9). Second-phase analysis is due in 2-3 weeks, and a full results summary is targeted for early August.
24 June 2021drilling result▲ Good
Lab analysis of 5 of 18 selected Merlin-1 core trims found hydrocarbons in 2, in zones the earlier fluid tool could not sample. Chemical signatures show no biodegradation. Further results from the remaining 13 trims and a second phase of analysis are due.
7 June 2021farm in farm out agreement● NeutralMajor
88E buys APDC's 50% of Peregrine, returning to 100%, for US$14m in shares plus a 1.5% royalty and reserve-linked cash payments (US$10m at 100m bbl 2P). APDC says it could not fund future seasons. This reverses the December 2020 farm-out, and 88E can farm out again.
25 May 2021drilling result● NeutralMajor
Merlin-1 fluid samples showed up to ~70% hydrocarbon, likely oil, but the readings are qualitative and may be mostly water. 88E's share of well cost is now about US$9m (versus US$4m earlier estimated). It will issue 345m shares at A$0.025 to vendors in part payment.
27 Apr 2021drilling result▲ Good
Lab testing of Merlin-1 cores, mud gas and fluids has begun, with results due in 2-10 weeks. Early mapping suggests newly found zones may be similar in size to the original targets, though this needs confirming. Pantheon's Talitha-A light oil flow next to Icewine prompts 88E to re-assess its Kuparuk acreage.
12 Apr 2021drilling result▲ Good
Sidewall cores from Merlin-1 show fluorescence and cut over several horizons, confirming the oil shows seen earlier in cuttings. Management calls the result expected. Samples have gone to a laboratory, with a results schedule to follow. No discovery has been declared.
6 Apr 2021drilling result● NeutralMajor
Merlin-1 reached 5,267 ft and logs show several possible pay zones, including a new horizon not targeted before. Equipment failure and poor hole condition prevented sampling the two best zones, so a discovery is unconfirmed. Too late in the season to flow test; the well will be plugged.
29 Mar 2021drilling progress report▲ Good
Merlin-1 logging while drilling shows multiple possible hydrocarbon zones, with oil shows over several intervals in the Nanushuk. The formation came in about 600 ft low to prediction and is interpreted to be about 500 ft thicker than at Willow. Wireline results are needed to confirm a discovery. Harrier-1 is now planned for 2022.
11 Mar 2021drilling spud● NeutralMajor
Merlin-1 began drilling on 10 March 2021, targeting 645m barrels gross, with results expected within about four weeks. 88E's share of cost rose to US$4m from US$1.4m, with cash of US$13m. Harrier-1 is now unlikely this season, a slip from the late March plan.
2 Mar 2021drilling scheduled● Neutral
Merlin-1 spud is now set for 8 March 2021 after minor weather delays, with drilling to a maximum of 6,000 ft and wireline logging to follow. Management says success could mean over 300m barrels net to 88E. Harrier-1 remains subject to permits and Merlin results.
23 Feb 2021resource reserve update● Neutral
88E released the ERCE Peregrine prospective resource report (completed January 2020 for XCD): 1,636 MMstb total mean unrisked, including Merlin 645m and Harrier 417m barrels. Chance of success is 37% for Merlin and 24% for Harrier. This formalises figures already quoted.
19 Feb 2021drilling progress report● Neutral
Rig 111 mobilisation to Merlin-1 has begun, with spud now the first week of March 2021 and drilling taking about 3-4 weeks. Pantheon's nearby Talitha-A well showed encouraging early results that may extend into Icewine. Eastern Icewine leases were also relinquished.
22 Jan 2021drilling progress report▲ Good
Snow road equipment is mobilising to Merlin-1, with 34 of about 90 miles built, and spud remains planned for mid-late February 2021. Lease AA095899 (Tract 29) was formally awarded, effective 1 January. Merlin-1 targets 645m barrels gross mean prospective; 88E is carried on the first US$10m.
