88 Energy Ltd highlights Merlin well can be re-entered in the future for testing
The company ended the quarter with a healthy cash balance.of A$20mln.
’s () quarterly activities update said the Merlin well is able to be re-entered to drill a side-track that could be flow-tested.
It comes after the well provided some evidence of oil but due to equipment failure and poor hole conditions, could not be fully tested.
The company earlier this month decided to plug the well as it was now too late in the season to start a testing programme.
Multiple potentially hydrocarbon-bearing zones were encountered in the well, which can be re-opened for future programmes.
Elsewhere, there was encouragement for the Project Icewine acreage thanks to nearby third-party Pantheon Resources‘ Talitha-A well showing positive early results before being moved to testing.
Permitting and planning is meanwhile ongoing for prospects in the Yokon leases, and future exploration programmes will be subject to the company striking a farm-out partnership.
The company in January acquired the Umiat oil field asset which is host to a historic discovery (made in 1945) plus exploration prospects.
On the corporate side, the company raised a total of A$18mln during the quarter, via two capital raises.
At the end of the quarter, it had a A$20.06mln cash balance and its joint venture had A$2.3mln.
Read More: 88 Energy Ltd highlights Merlin well can be re-entered in the future for testing