88 Energy (AIM:88E ) said that findings from seismic reprocessing work - including Amplitude Vs Offset or ‘AVO’ studies - undertaken at its Project Peregrine are “highly encouraging”.
In 2019, seismic reprocessing work was undertaken on strategically selected regional 2D lines extending into the Willow oil field north of the Peregrine project area.
The AIM and ASX-listed energy firm said the findings have identified several similarities between the key prospects at Project Peregrine and existing discovered fields nearby.
The results of the analysis have identified the Harrier and Merlin prospects as analogous to Conoco’s large Willow oil field, which is located to the north of the project exploration area.
In particular, 88E said the signatures observed in the seismic, particularly fluid factor, were seen to be “very similar” between the Willow oil field and the Merlin and Harrier prospects.
Shares in 88 Energy were trading off lows of 0.26p at the beginning of the month to almost doubling to 0.42p this morning.
The company has now opened a data room as part of the Project Peregrine to enable the farm-out to potential partners, ‘several of whom are now progressing to commercial discussions.’
88E said it is targeting an agreement prior to year-end 2020. Meanwhile, work related to drilling of up to two wells at Project Peregrine, commencing 1Q21, remains on schedule.
Managing Director of 88 Energy, Dave Wall, stated: "The recent AVO work is highly encouraging and provides additional confidence in both the Merlin and Harrier prospects.”
He added, “Additionally, both planning and farmout activity is progressing well towards the planned 1Q2021 spud date, now less than 6 months' away."
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