The Alaskan-focused explorer, 88 Energy (88E ), told investors that as of Tuesday, drilling has ceased at the Merlin-2 appraisal well where drilling has reached total depth (TD) of 7,334 feet.
The Alaskan-focused explorer spudded the Merlin-2 appraisal well, which is located in Project Peregrine in the NPR-A region of the North Slope of Alaska, back on Tuesday 8 March 2022.
Following the commencement of drilling at the Merlin-2 appraisal well earlier this month, 88 Energy said the Merlin-2 surface hole had already been successfully drilled to 2,005ft.
Last week, 88 Energy also told investors that operations were progressing as planned with the Arctic Fox rig scheduled to commence drilling ahead to the reservoir targets ‘imminently.’
88 Energy has confirmed that drilling has ceased and that the Arctic Fox rig has exceeded expectations in terms of drilling performance, with the well reaching TD safely and efficiently.
All three Nanushuk targets (N20, N19 and N18) were penetrated during drilling, with Logging While Drilling (LWD) data and physical cuttings collected throughout the Merlin-2 program.
Initial observations of LWD logs and drill cuttings collected throughout the drilling operations revealed target intervals are thicker than those encountered in Merlin-1 as anticipated pre-drill, with oil shows noted under white light in the three target Nanushuk reservoirs.
Fluorescence was observed in samples when placed under an ultraviolet light, an indication of oil presence. When solvent was applied to these samples, “moderately fast” to “immediate and blooming” “cuts” were noted, the speed of which is often a proxy for sample permeability.
Significant mud gas peaks were also detected across all target sequences in the Nanushuk, with marked increases in the heavier carbon compounds (C2-C5) observed in each, it said.
88 Energy said a more detailed analysis will be conducted on the samples while a wireline logging program will be run designed to confirm reservoir quality and mobile hydrocarbons.
The program will include MDT for fluid sampling and flow potential measurements, sidewall cores and image logs, and is expected to take approximately seven to ten days to complete.
Commenting on this morning’s news, Managing Director, Ashley Gilbert, told investors: “The results to date from the Merlin-2 well are encouraging. Initial indications are that all three target reservoirs in the Merlin-2 well were penetrated, demonstrated elevated gas readings, and observation of cuttings samples have revealed oil shows over the target intervals.”
He added: “We look forward to results from the pending wireline program, which is set to be conducted over the next 7 to 10 days. Following completion of this program, we hope to be able to confirm the presence of mobile hydrocarbons, and a discovery, at Merlin-2.”
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