88 Energy receives approval to start drilling at Project Icewine in Alaska

88 Energy has received permission to drill the Icewine#2 well at Project Icewine in Alaska.

The company received the approval for the drilling from Alaska Oil and Gas Conservation Commission (AOGCC).

With this approval, 88 Energy has received all permits necessary to spud the Icewine#2 production test well.

The wellhead and its associate infrastructure reached Kenai in Alaska.

The company is currently carrying out pressure testing at the property, while delivery of the wellhead to site is expected this week.

The well is expected to be spud in the week beginning 24 April and stimulation and production testing are scheduled in June and July this year.

88 Energy managing director Dave Wall said: “The Accumulate Energy Alaska team has done a great job in conjunction with the regulatory agencies in Alaska in ensuring that all components will be in place for spud of Icewine#2 prior to the end of April.

“We look forward to bringing together the team of employees, vendors and consultants to successfully execute the well over the coming weeks.”

In November 2014, 88 Energy signed a binding agreement with Burgundy Xploration (BEX) to buy a significant working interest (of 87.5%, which will reduce to 77.5% on spud of the first well on the project) in large acreage with liquids rich exploration opportunity onshore Alaska, North America. This acreage is referred to as Project Icewine.

In June last year, the gross acreage position was increased to 271,119 contiguous acres (210,250 acres net to the company). Last December, the company bid on additional acres.

 

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Image: Project Icewine location. Photo: courtesy of 88 Energy.