www.88energy
.com
Level 2
,
5 Ord
Street, West Perth WA 6005 PO Box 1674, West Perth WA 6872 Australia Phone +61 8 9485 0990
ABN 80 072 964 179
26
June
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
•
Flowback continues with
~13% of stimulation
fluid recovered
Icewine#2
Operations Update
Flowback commenced on the 19
th
June from stage 2 (upper zone). Approximately 8% of total
stimulation
fluid volume was recovered until it became apparent, due to rate and pressure
observations
, that the upper zone was likely in communication with the lower zone. Consequently, a
decision was made to drill out the plug between the upper and lower
zones. No increase in pressure
was observed, confirming that the two zones are in effective communication. Trace hydrocarbons
were encountered whilst flowing back the upper zone
prior to drilling out the plug
and, as expected,
the flow rate returned to 100% stimulation fluid once the two zones were flowed back together.
Flowback
, currently
comprising 100% stimulation fluid,
is continuing.
Percentage
of
fluid recov
ered
to date is ~
13%
of the total fluid pumped.
It is estimated that up to 30% of the stimulation fluid will
need to be recovered before
hydrocarbons
will be released from the reservoir.
The forward plan is to m
onitor pressure and flow rate and
continue to draw stimulation fluid off the
reservoir. Artificial lift, using nitrogen
or swab cups
, may be introduced at some stage to increase the
rate of draw down of fluid. If pressure becomes too low it is possible that operations will necessitate
a shut-in to allow fluid to ‘soak’ and pressure to build up. This ‘soaking’ is not uncommon in other
shale plays as it allows stimulation fluid to be absorbed into the reservoir and
can result
in lower
required fluid flowback before onset of
hydrocarbon flow.
Further updates will be made as and when appropriate throughout the testing program.
Managing Director, Dave Wall, commented:
“
We continue to monitor pressure and flowback of
stimulation fluid whilst we wait for hydrocarbons to be released from the reservoir. Given that we are
breaking new ground in relation to the HRZ formation, we need to establish the
conditions
under
which
the hydrocarbon cut will return and then increase.
The stimulation was executed
precisely as per plan with over one million
lbs
of proppant placed into
the formation. A little patience is
now
required as we give the rocks time to show us what they can
deliver
.”
Yours faithfully
Dave Wall
Managing Director
88 Energy Ltd