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r/EEENF

•Posted by

u/Ok-GeodesRock49

3 hours ago

The Latest Update -- why it matters to the Merlin #1

It has been a silent concern of mine as to what IF a discovery of commercial volumes of oil is made. How would it get to market? To justify a pipeline, what volumes would be needed and how many development wells would have to be drilled to fill the pipelines minimum daily barrels of oil, 10K, 20K, 30K or more? This will take a considerable amount of time and of course $$$$. The only outlet from the North Slope area is the Trans-Alaska Pipeline System and it is far to the east. But, there has to be other pipelines from other fields connecting to it .... lots to consider on this topic. But it is the major factor for consideration - IF the Merlin #1 is a discovery, it will sit silently until development and pipeline connection. The last thing you want to read on the State of Alaska Oil & Gas website is that the present well status is "SI-WOPL" = Shut In- Waiting On Pipeline. It will anyway even if there is a discovery, just don't want to see that status 1-2 years after discovery.

The latest update addresses "The final condition related to the acquisition of the Umiat Oil Field (“Umiat”) is now complete....

This is unrelated to the current well being drilled because it is other 88 Energy business as usual. BUT, because Umiat is/was/will be a producing field, it has a pipeline to market. The Merlin #1 is located to the North a relatively short distance - so market out of discovery oil would be accelerated. This to me "changes everything" should the Merlin #1 be a discovery. IMO