88 Energy shares surge on latest data from Charlie-1

88 Energy updated the market on results from the Charlie-1 appraisal well on the North Slope of Alaska on Friday, reporting that the final petrophysical interpretation, using sophisticated laminated sand analysis, “substantially” upgraded the well’s net hydrocarbon pay.

The AIM-traded firm said the interpretation integrated log data and advanced lab analysis of cores taken during drilling, including “excellent” liquid hydrocarbon saturations from both Dean Stark and core NMR.

It said the increase in pay came despite higher cut off values being used to determine pay zones.

The pay zones were also high graded compared to the initial interpretation, with lower water saturation and higher oil saturation, and better average porosity.

88 Energy said the final petrophysical interpretation would now be integrated into revised mapping of the Seabee and Torok discoveries, to determine resource estimates.

The data room for the next Project Icewine farm-out would be opened in the near term, with the board also adding that the thermal maturity of the HRZ shale had been confirmed as in the peak oil generation window.

“The results from the Seabee, despite Charlie-1 not being optimally located, are outstanding,” said managing director Dave Wall.

“Whilst these may appear as a serendipitous by-product of the well, internal analysis prior to drilling had already significantly high graded this formation; however, it was too late to change the objectives [and] location of the well meaning that work remained largely on the drawing board.

“This final interpretation is a strong vindication of that internal effort.”

Wall said the company was now looking forward to the conclusion of the evaluation of the Seabee oil discoveries, as it integrated the petrophysics into the seismic inversion and subsequent mapping, which would ultimately yield updated volumetrics for its resources that will feed into the Icewine farm-out process.

“Good progress continues to be made at the newly acquired Project Peregrine on both the farm-out and permitting/planning fronts.

“Additional news related to that will be provided to the market in a separate announcement in the near term.

“Finally, the confirmation of the ideal thermal maturity for the HRZ shale is encouraging and will form the basis of further work to continue to unlock its large potential.”

At 1155 BST, shares in 88 Energy were up 16.89% at 0.34p.