18
July
2017
88 Energy Limited
Icewine#2
Operations Update
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to provide
an update on Project
Icewine, located onshore North Slope of Alaska.
Highlights
•
Icewine#2 well shut
-in on 10
th
July to allow for imbibition and pressure build-
up
•
Analyses of flowback results to date ongoing
Icewine#2
Operations Update
The Icewine#2 well was shut
-in on the
10
th
July for a six week period to allow for imbibition and
pressure build up to occur.
Prior to shut
-in, 16% of the stimulation fluid had been recovered from the
reservoir under natural flowback, with trace hydrocarbons returned at surface.
Imbibition,
or “soaking”, allows for absorption of frac water into the formation, which may displace
reservoir water molecules that are restricting hydrocarbon molecules from flowing into the created
fractures. The pressure build up data will provide insights into the
permeability created by the
stimulation. Ultimately, the post shut
-in well performance will determine the next steps required,
such as continuing to flowback naturally or the introduction of artificial lift (eg swabbing).
The HRZ shale shares several characteristics with other successful shales in the Lower 48;
however, there is no blueprint or benchmark against which it is meaningful to measure performance
as there are also many differences. At this juncture, the Joint Venture is of t
he view that further
analyses are
required to determine what impact the performance of the well
to date
has on the
probability of success for the play. These analyses include, but are not limited to;
•
comparison
of the flowback rate against expected the expected flowback rate based on
reservoir parameters and the successful execution of the fracture stimulation;
•
reconciliation of the petrophysical model
, and the apparent in
-situ hydrocarbons
, with the
hydrocarbons recovered to surface to date.
These analyses are ongoing and wi
ll be communicated once complete.
Further updates will be made as and when appropriate throughout the testing program.
Yours faithfully
Dave Wall
Managing Director
88 Energy Ltd