Past year: ▼ 2%(1.80c – 3.60c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
7 Jan 2021drilling scheduled● Neutral
Snow road construction has started for Peregrine, Rig 111 is being commissioned, and Merlin-1 spud remains on track for mid-to-late February 2021. 88E is also studying uses for the Torok gas (over 1 TCF gross mean prospective), and now targets an Icewine farm-out in 3Q 2021.
4 Dec 2020farm in farm out agreement▲ GoodMajor
88E signed the Peregrine farm-out with Alaska Peregrine Development Company: APDC earns 50% by paying US$11.3m toward the Merlin-1 well (estimated gross cost US$12.6m). 88E pays US$1.3m, with costs above a US$10m carry shared equally. This completes the farm-out process announced in November.
10 Nov 2020resource reserve update▲ GoodMajor
ERCE independently estimates Icewine prospective resources near Charlie-1 at 1.77bn boe gross mean unrisked, including 1.4bn barrels of oil in the Seabee. This follows the Charlie-1 results and the rise to 75% interest. Seabee flow rates remain untested; a farm-out for 2022 drilling starts immediately.
9 Nov 2020farm in farm out agreement▲ Good
A preferred bidder has been selected for the Peregrine farm-out after competitive bids, with final documents expected within weeks. First well spud is planned for late February 2021. No terms disclosed yet.
11 Sept 2020resource reserve update▲ GoodMajor
Final Charlie-1 petrophysics lift net pay to 398 ft from 280 ft, mostly from the Lima oil discoveries in the Seabee. Torok gas-to-oil ratio remains uncertain. A data room for the next Icewine farm-out opens soon; resource estimates to follow.
20 May 2020resource reserve update▲ Good
XCD Energy (the takeover target) reports its Project Peregrine royalty cut from 1.5% to 1.3%, and a higher chance of success for its Merlin and Harrier prospects after ConocoPhillips' Harpoon well found hydrocarbons. Total unrisked prospective resource is about 1.6bn barrels; target's statement due soon.
20 Apr 2020resource reserve update▲ GoodMajor
Third-party log interpretation shows over 280 feet of net pay across the Seabee, Torok and Kuparuk, which the company says compares favourably with pre-drill expectations. Lab work must confirm it and will lead to a revised prospective resource. Cost cuts exceed A$750,000 a year.
7 Apr 2020drilling result▼ BadMajor
Charlie-1 found gas condensate in the Torok Formation (Middle and Lower Stellar) but Indigo was water-bearing, Charlie poorly developed and Lower Lima too poor to sample. Premier will withdraw and the well will be plugged. 88E expects no drilling cost. Mixed result, ending the oil-focused pre-drill hopes.
31 Mar 2020drilling result● Neutral
Charlie-1 reached total depth of 11,112 feet on 30 March 2020, having logged all targets including the HRZ. Logging-while-drilling shows are largely consistent with Malguk-1. Significance awaits wireline logging, about 7 days.
19 Mar 2020drilling progress report● Neutral
After a minor weather delay, surface casing is set and the blowout preventer test passed. Production hole drilling is imminent, with logging results expected in early April. The company says COVID-19 has had no impact so far. No new result.
11 Mar 2020drilling progress report● Neutral
Charlie-1 surface hole reached about 3,500 feet and casing is being run before the 8.5-inch production hole. Routine progress with no new result.
3 Mar 2020drilling spud▲ GoodMajor
Charlie-1 began drilling at 0600 on 2 March 2020 Alaska time, the well 88E has built toward since 2016. Premier funds costs up to US$23m. Targets total 1.6bn barrels gross (480 MMBO net) prospective; flow testing is expected to finish in April.
12 Feb 2020drilling progress report▲ Good
The Permit to Drill was approved on 11 February, so all permits for Charlie-1 were in hand. The ice road was over 80% complete, rig mobilisation was due in about 10 days, and spud remained on track for late February.
15 Jan 2020drilling progress report● Neutral
Ice road about 25% built. Permit to Drill submitted, approval expected late January, the last major permit. First cash calls under the farm-out received. Spud timing to be refined later.
27 Dec 2019drilling progress report● Neutral
Snow trail from the Dalton Highway is complete and ice road construction is due to start before end-2019. Charlie-1 spud remains on track for February 2020. Logistics update with no new result.
27 Nov 2019farm in farm out completion▲ GoodMajor
All conditions to the Premier farm-out were satisfied and final agreements executed 26 November 2019, closing the thread expected for end-November. Charlie-1 Plan of Operations approved 22 November; the final permit (Permit to Drill) is due in January. Spud still February 2020.
15 Oct 2019drilling scheduled▲ Good
Rig contract signed with Nordic-Calista for the Charlie-1 appraisal well, with spud planned for February 2020 and flow testing to conclude by April. Two key permits remain. Premier farm-out conditions are expected to be met by end-November. Gross mean prospective resource is 1.6bn barrels.
23 Aug 2019farm in farm out agreement▲ GoodMajor
Premier Oil signed to farm into 60% of Icewine Area A, paying up to US$23m for the Charlie-1 appraisal well in Q1 2020. 88E keeps 30% and Burgundy 10%. Resolves the farm-out thread begun in March; Premier may earn 50% of Area B or C for US$15m.
26 June 2019farm in farm out agreement▲ Good
The Icewine conventional farminee has completed internal approvals, including board sign-off. The deal still needs closing documents and standard conditions precedent. Well planning for 2020 drilling is ramping up. The partner is not named here.
13 Mar 2019drilling result▼ BadMajor
Winx-1 is a disappointment: wireline logs show low oil saturations in the Nanushuk and Torok, no hydrocarbons recovered, and clay limiting flow. No production test; well to be plugged and abandoned. Ends the 144 MMbbl net prospect test.
6 Mar 2019drilling progress report▲ Good
Winx-1 reached total depth of 6,800 feet on 3 March, with all pre-drill targets intersected and multiple potential pay zones identified. A roughly 10-day wireline logging program starting 6 March will decide whether to production test.
4 Mar 2019drilling result▲ GoodMajor
Winx-1 intersected the primary Nanushuk targets at 4,667–4,901 feet with elevated gas, oil shows and resistivity, and shows in the Torok at 6,052 feet. Management calls this encouraging but too early; wireline logging will decide on testing.
1 Mar 2019drilling result▼ BadMajor
Winx-1 recorded weak to moderate oil shows at 4,460–4,530 feet in the Nanushuk, but early analysis suggests high water saturation and a zone at the lower end of commerciality. The shallower Seabee target showed no oil. Drilling continues to deeper targets.
26 Feb 2019drilling progress report● Neutral
Winx-1 began drilling the intermediate section on 25 February, at about 2,640 feet, after the blowout preventer inspection was completed. The main Nanushuk targets (~4,500 feet) come next. No hydrocarbon results yet; more data needed.
22 Feb 2019drilling progress report▲ Good
Winx-1 reached about 2,500 feet on 20 February and surface casing was run as planned. After cementing and pressure tests, the intermediate section holding the main Nanushuk target starts the week of 25 February. No hydrocarbon results yet.
18 Feb 2019drilling spud▲ GoodMajor
Winx-1 began drilling at 15:15 on 15 February (Alaska time), on schedule, and was at 880 feet by 17 February. Next step is deepening to about 2,500 feet for surface casing. The 400 MMbbl gross (144 net) prospect is now being tested.
15 Feb 2019drilling progress report▲ Good
Rig arrived on location 7 February and the 'crew-up' call was made on 14 February, which usually means spud within 24 hours. Winx-1 spud is on schedule for 15 February 2019; no drilling results yet.
5 Feb 2019drilling progress report▲ Good
Nordic Rig#3 began moving on 1 February to the Winx-1 site, about 90 miles away. Ice road, ice pad and cellar are complete, and spud is now scheduled for about 15 February 2019, in line with the earlier mid-late February window.
24 Jan 2019drilling progress report● Neutral
Winx-1 ice road is about 85% complete and Nordic Rig 3 passed a third-party inspection with only minor issues. Rig mobilisation starts in about a week; spud still scheduled mid-late February 2019. On plan, no new results.
7 Jan 2019drilling progress report● Neutral
Ice road construction for Winx-1 began 2 January and the Permit to Drill was submitted on schedule. Spud is now expected mid-late February 2019, a slightly more specific window than before.
