Perth-based 88 Energy Ltd. plans to drill a step-out well to a former BP oil discovery well onshore Alaska early in 2020 with Premier Oil PLC, London, farming in to take a 60% interest.
Charlie-1 is designed to intersect seven stacked reservoirs, four of which have been found to contain oil saturated sandstone. The well is a one-mile step-out to BP’s 1991 Malguk-1 that found oil in multiple horizons but was never tested because of mechanical problems.
No additional work was done until 88 Energy acquired the surrounding leases in mid-2016.
Subsequently, 88 Energy fast-tracked a 3D seismic program and completed petrophysical analysis of a number of nearby wells, including the original discovery.
Premier farmed into the prospect in August this year and will fund the Charlie-1 well up to $23 million to earn 60% of the western portion of 88 Energy’s leasehold.
88 Energy will retain 30% and operatorship.
The company estimates the stacked horizons could contain 1.6 billion bbl of oil.
A rig has been contracted and the main drilling permits are in place. Charlie-1 is scheduled to spud in February 2020.