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88E to Drill One of The Biggest Oil Wells in The World in 2020
WRITTEN BY: MEAGAN EVANS
PUBLISHED: 15-10-2019
88 Energy (ASX:88E | AIM: 88E) is gearing up to drill one of the biggest oil wells in the world in 2020.
In one drilling event in February 2020, no less than seven stacked targets will be pierced by the Charlie-1 well, and a total of 1.6 billion barrels of potential will be tested – 480 million barrels net to 88E.
Drilling is expected to take just 30 days. Given conventional targets are being tested here, results will be almost immediate.
This is not a pure exploration drill – it's appraisal drilling for the most part.
In the vicinity of Charlie-1’s location, BP Exploration drilled the Malguk-1 well in 1991 which encountered oil shows over multiple horizons during drilling. However, these shows were not properly tested due to complications at the end of drilling operations.
Fast forward 30 years, with significant leaps in technology along the way, and 88E has undertaken a revised petrophysical analysis, which has identified bypassed pay in the Malguk-1 well. 88E also acquired modern 3D seismic to determine the extent of the discovered oil accumulations.
Consequently, four out of the seven stacked prospects Charlie-1 will intersect have been interpreted as oil bearing in Malguk-1 and are considered appraisal targets.
So while still risky, 88E’s upcoming well has a much lower relative risk compared to previous wells the company has drilled in the past.
And if you have been following 88E for some time you would recall the very large share price uplifts for those wells at drilling time...
88 Energy
ASX:88E, AIM:88E
Share Price: A$0.012 (ASX) | £0.69 (LON)
Market Capitalisation: A$82.5 million
Here’s why I like 88 Energy:
88 Energy (ASX:88E, AIM:88E) is currently in preparations to drill the Charlie-1 (Malguk-1 appraisal) well at its conventional Icewine Project in the proven Alaska North Slope basin — what will be a pivotal moment for the company as it seeks to unlock the large potential of the conventional plays on the acreage.
As mentioned, 88E will be fully carried with Charlie-1 funded up to US$23M by Premier Oil Plc, a highly credentialed partner that has recently farmed in.
The background leading to today’s position can be found in my last article on August 23, 88E Partner with $1B Premier Oil in North Slope Farmout: Drilling Q1 2020.
Further explanation has been provided on the Vox Markets Podcast, where Dave Wall, managing director of 88 Energy, answered some key shareholder questions...
https://news.sky.com/story/iranian-oil-tanker-explodes-in-feared-terrorist-attack-11832656
https://news.sky.com/story/iranian-oil-tanker-explodes-in-feared-terrorist-attack-11832656
https://news.sky.com/story/iranian-oil-tanker-explodes-in-feared-terrorist-attack-11832656
LSE:CERP
Columbus Energy Resources Share News (CERP)
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Share Name Share Symbol Market Type Share ISIN Share Description
Columbus Energy Resources Plc LSE:CERP London Ordinary Share GB00BDGJ2R22 ORD 0.05P
Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
+0.00p +0.00% 4.15p 4.00p 4.30p - - - 0 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 7.6 -2.7 -0.5 - 34
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Columbus Energy Resources PLC Update on Spain
10/10/2019 7:46am
UK Regulatory (RNS & others)
Columbus Energy Resources (LSE:CERP)
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Today : Thursday 10 October 2019
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RNS Number : 4516P
Columbus Energy Resources PLC
10 October 2019
10 October 2019
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Update on Spain
Columbus, the oil and gas producer and explorer with operations in Trinidad and Suriname, provides the following update about the La Lora Concession in Spain.
The Company has formally lodged a claim with the Spanish Government to recover EUR919,192.96 in costs caused by the Spanish Government's decision not to re-tender the La Lora Concession.
Leo Koot, Executive Chairman of Columbus, commented:
"The Company was disappointed in November 2018 when the Spanish Government decided not to re-tender the La Lora Concession, especially as we had been led to believe that a new tender would be forthcoming before the end of 2018. The Company believes it unnecessarily incurred otherwise avoidable costs during the re-tender process (from February 2017 until October 2018) before the re-tender process was abandoned by the Government. We have made a claim to recoup those costs. The Company does not expect to incur any material costs in pursing the claim."
Background
As announced by the Company on 5 November 2018, the Company received notification from the Spanish Government in November 2018 that it should commence the decommissioning of the Ayoluengo field.
The Company was expecting the Spanish Government to re-tender the La Lora Concession and indeed has been waiting for the re-tender process to commence since January 2017.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Contact Information
Staatsolie signs production sharing contract with new partner
Oct 05, 8:33 AM
State oil director Rudolf Elias and Leo Koot, Executive Chairman of Columbus, sign the production sharing contract. (Photo: Staatsolie)
The production sharing contract (Production Sharing Contract, PSC) for the Road to Sea block between Staatsolie Maatschappij Suriname NV and its new partner Columbus Energy Resources PLC from England, was signed on Thursday. Columbus Energy Resources PLC will search for oil in this area, which has an area of ??901 km².
Columbus made an offer for the area on January 11. Rudolf Elias, Managing Director of Staatsolie, and Leo Koot, Executive Chairman of Columbus, signed the contract on behalf of the companies. The agreement is valid for 30 years. It has been agreed between the two parties that a minimum exploration program will be carried out during the first seven years.
All costs in the exploration phase are for the account of Columbus. Staatsolie has the possibility to participate up to a maximum of fifty percent in the development and production phases. If the exploration activities do not lead to a commercial find, Columbus will not be reimbursed and Staatsolie has no further obligations towards Columbus. In each PSC, Staatsolie has the option to participate as a contracting party for a certain percentage.
The production sharing contract pays attention to inspection, safety and the environment. Provisions have also been included for employment for the local management, training, social programs and the way in which facilities will be dismantled at the end of the work, says Staatsolie Corporate Communication.
This news was out yesterday 18.00 hours
MEXICO CITY, Oct 2 (Reuters) – A consortium led by Talos Energy and Premier Oil has given up a Mexican oil contract in the Gulf of Mexico's shallow waters due to lack of commercial discovery, three sources with knowledge of the matter told Reuters on Wednesday.
The return of the block was expected to be announced by the country's oil regulator later on Wednesday. The consortium in 2015 was awarded a contract to explore the block, area 2 of Mexico's first shallow water round.
Being the 1st of the month some of those trades look like Rollovers.