Ann: Operations Update - Project Icewine, page-2

12 September 2017
88 Energy Limited
Project Icewine Operations Update
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to provide
an update on Project Icewine, located onshore North Slope of Alaska.
Highlights
• Currently flowing back naturally on 8/64 choke at ~55 barrels per day frac fluid
• Minor hydrocarbon indications via flow rate of 2-4mcf of gas per day, with a maximum rate of
8mcf of gas per day
Icewine#2 Operations Update
The Icewine#2 well was shut-in on 10th July to allow for imbibition and pressure build up to occur within
the HRZ shale. Flow testing re-commenced on 31st August at 10:26 (AK time), and is ongoing. Results
since flow testing recommenced are summarised below.
The Icewine#2 well is located on the North Slope of Alaska (ADL 392301). 88 Energy Ltd (via its
wholly owned subsidiary, Accumulate Energy Alaska, Inc) has a 77.55% working interest in the well.
The well was stimulated in two stages over a gross 128 foot vertical interval in the HRZ shale
formation, from 10,957-11,085ft TVD, using a slickwater treatment comprising 27,837 barrels of fluid
and 1,034,838 pounds of proppant.
The well was initially flowed back on a 6/64 inch choke and was reduced to a 4/64 inch choke after 26
hours to maintain pressure. Approximately 370 barrels of frac fluid had been recovered as at 1730 on
3rd September (AK time) at an average rate of 100 barrels per day. The choke was subsequently
stepped up to 8/64 inch at 1800 10th September (AK time) as the overall declining pressure gradient
versus time improved, indicating potential pressure support. To date, the cumulative amount of
stimulation fluid produced from both testing periods is 5,277 barrels, 19.0% of fluids injected.
Wellhead pressure built to ~3,500psi during shut-in and has dropped to 106psi since flowback
commenced and is now declining very slowly with a relatively constant flowback rate of 55 barrels per
day. At 0930 9th September (AK time), a decision was made to run the flowback through the test
separator due to minor gas indications being evident. To date the rate of flow has been unstabilised
at between 2 and 4 mcf per day made up of 76% hydrocarbons, 20% atmospheric gases and 4%
inorganics. The produced hydrocarbons comprise 93% methane with 7% heavier fractions.
The current flowback procedure remains early stage with only 19.0% of the frac fluid retrieved. The
gas observed so far is not considered representative of the potential rate or composition of
hydrocarbon in the reservoir. It is interpreted that additional frac fluid needs to be removed in order to
achieve a representative result. A decision will be made on the most appropriate strategy to
accomplish this within the next two weeks.
Yours faithfully
Dave Wall
www.