88 Energy's Alaska operation on track with expectations

Exploration group 88 Energy said drilling operations at its Alaska site were proceeding faster than expected.

The London-listed company said the Kuukpik Rig 5 at the Icewine 1 site had drilled to 6,258 ft and was currently drilling ahead, after successfully completing the Blow Out Preventer system and formation integrity test.

Since drilling got recommenced on Tuesday, the group said it drilled a 2,600 ft interval over 48 hours, significantly ahead of expectations.

The Brookian sequence the drilling has so far intersected comprises mainly of siltstones and clays with some sandstone intervals, 88 said.

“Good porosity is indicated in several horizons and multiple oil shows have also been recorded; however, on first analysis, these are interpreted as of minor significance,” the group said in a statement.

Conventional potential remains in the continuing Brookian sequence before intersection of the primary HRZ shale target, 88 added, indicating it plans to drill the well to a total depth of 11,600 ft, a process which would take up to a month.

"Whilst the issues with the BOP and mud pump caused minor delays to the schedule, the well remains well within the budget and substantial lost time has already been clawed back while drilling the intermediate section,” said group managing director Dave Wall.

88 Energy shares were down 0.87% to 0.629p at 0906 GMT on Friday.