88 Energy plugs Charlie-1 North Slope well, Premier to exit project
88 Energy Ltd, Perth, has plugged the Charlie-1 appraisal well in Area A on the North Slope of Alaska.
While the well proved the presence of mobile hydrocarbons in the form of condensate gas in the Torok formation, other target reservoirs were found to be poorly developed and no samples obtained, the company said
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Following this result, joint venture partner Premier Oil intends to withdraw from the project as the well did not meet its pre-drill expectations.
Hydrocarbons were successfully recovered to surface from two targets in the Torok formation using a downhole sampling tool, the company said. Further analysis will be required to confirm the gas composition and gas-liquid ratio.
A sample in the first Schrader Bluffs formation target was found to be water-bearing. A second target in the formation had oil shows that were deemed to be residual oil not trapped in the system.
The Seabee formation targets were also unsuccessful due to insufficient reservoir quality, although the company said that these targets were not intersected optimally and may still have potential for better reservoir quality at a different location.
Analysis of well logs and sidewall cores will now be studied to help determine where improved reservoir may exist.
The well was plugged rather than suspended or tested because further analysis is needed to determine whether such a high gas content discovery can be commercialised on the North Slope, the company said.
A stimulation and test programme is not possible because of the different phase of hydrocarbons encountered along with the lack of time in the remaining winter drilling season.
The well confirmed the presence of mobile hydrocarbons in the primary targets, but there are challenges to understand whether these can be commercialised in the region, said Managing director David Wall.
Charlie-1 lies on ADL 393380 where 88 Energy is operator with 30% interest. Partners are Premier Oil 60% and Burgundy LLC 10%.
Source: Oil & Gas Journal