LONDON (ShareCast) - (ShareCast News) - 88 Energy issued an update on Project Icewine, located onshore North Slope of Alaska, on Monday, confirming flowback had commenced on 19 June from stage 2.
The AIM-traded company said approximately 8% of total stimulation fluid volume was recovered until it became apparent, due to rate and pressure observations, that the upper zone was likely in communication with the lower zone.

As a result, a decision was made to drill out the plug between the upper and lower zones.

No increase in pressure was observed, confirming that the two zones were in effective communication.

Trace hydrocarbons were encountered whilst flowing back the upper zone prior to drilling out the plug and, as expected, the flow rate returned to 100% stimulation fluid once the two zones were flowed back together, the board reported.

Flowback, currently comprising 100% stimulation fluid, was continuing.

The percentage of fluid recovered to date was around 13% of the total fluid pumped.

It was estimated that up to 30% of the stimulation fluid would need to be recovered before hydrocarbons would be released from the reservoir.

The forward plan was to monitor pressure and flow rate, and continue to draw stimulation fluid off the reservoir.

Artificial lift, using nitrogen or swab cups, may be introduced at some stage to increase the rate of drawdown of fluid, 88 Energy explained.

If pressure became too low, it was possible that operations would necessitate a shut-in to allow fluid to 'soak' and pressure to build up.

That 'soaking' was not uncommon in other shale plays, the board claimed, as it allowed stimulation fluid to be absorbed into the reservoir and could result in lower required fluid flowback before onset of hydrocarbon flow.

Further updates will be made as and when appropriate throughout the testing program.

"We continue to monitor pressure and flowback of stimulation fluid whilst we wait for hydrocarbons to be released from the reservoir," said managing director Dave Wall.

"Given that we are breaking new ground in relation to the HRZ formation, we need to establish the conditions under which the hydrocarbon cut will return and then increase."

Wall said the stimulation was "executed precisely" as per plan, with more than one million lbs of proppant placed into the formation.

"A little patience is now required as we give the rocks time to show us what they can deliver."

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