88 Energy (AIM:88E) has been formally re-assigned the "Area A" leases at Project Icewine, meaning its working interest in around 40% of the project has increased from 30% to 75%.
The Alaskan-focused explorer also said an independent resource estimate at Icewine which will integrate the results of the recently successful Charlie-1 well is ‘due within weeks.’
Both the increase in acreage (a net increase of ~85,000 acres) and the independent resource estimate are expected to facilitate ongoing farm-out discussions at Project Icewine 88E said.
The Company highlighted that a new farm-out process will follow the release of the report.
Recent work on core and cuttings at Charlie-1 supports the presence of a liquid oil phase in the Torok formation, with microthermometry showing oil inclusions with 46-49 degree API (condensate) and 37-42 API (volatile oil).
This confirms conclusions of previous analysis which indicated excellent liquid hydrocarbon saturations which identified nuclear magnetic resonance / Dean Stark saturations showing 25-57% liquid hydrocarbon saturation in sidewall cores from the Torok in Charlie-1).
Shares in 88 Energy have already increased by 25% since September 2020 to open 12.61% higher this morning at 0.375p following the announcement.
Meanwhile, a farm-out process at Project Peregrine has progressed through technical due diligence for multiple parties and several initial non-binding offers have been received.
Whilst encouraging for the scheduled close of a deal prior to year-end, there can be no guarantee that a deal will be completed within this timeframe, the company noted.
Permitting, planning and contracting works associated with the drilling of the Merlin and Harrier prospects at Peregrine remain on schedule for spud of the first well in 1Q 2021.
88E’s Managing Director, Dave Wall, said, "We are very pleased with how the Company is currently positioned and look forward to closing out several material items in the near-term."
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