Perth-based 88 Energy Ltd. has raised $10.07 million (Aus.) from investors for its planned 2021 drilling program, including two Project Peregrine wells on the North Slope of Alaska.
Project Peregrine was recently acquired in an off-market takeover of XCD Energy Ltd. Preparations are being finalized for drilling of Merlin-1 and Harrier-1, the first of which is due to spud in late February 2021.
The wells will be drilled into the shallow Nanushuk reservoir using a lightweight workover rig that can be transported off road in pieces by tundra-safe track vehicles along snow trails and gravel roads. Drilling depths of around 5,000 ft 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 holds an estimated 450-800 MMboe.
The Merlin prospect is considered a direct analogy to Willow, said 88 Energy managing director Dave Wall. The prospect lies directly north of the Umiat oil find estimated to contain more than 1 billion bbl of oil in place, while ConocoPhillips’ Harpooon prospect lies 15 km northwest of the Harrier structure.
88 Energy said that the successful placement, plus existing cash reserves of $4.6 million (Aus.), will provide sufficient capital to fund the Peregrine wells costs above an anticipated farm out-carry. The company will be able to meet lease rental payments and service its debt facility as well as apply funds to new venture opportunities, it said.
Final documentation in relation to a farm-out of the Project Peregrine with a preferred bidder is nearing a conclusion with execution of final documents expected before yearend.