LONDON (ShareCast) - (Sharecast News) - 88 Energy updated the market on operations at its recently-drilled Charlie-1 appraisal well on the North Slope of Alaska on Thursday, reporting the average API gravity of liquid hydrocarbon in the Torok Formation as around 50 degrees.
The AIM-traded firm said there were "compelling" indications of oil updip from Charlie-1 in Torok, with a possible intraformational seal identified, which it said supported the geological model for the alternate phase.

Oil was interpreted in the Seabee at Malguk-1 and Charlie-1, as well as updip at Heavenly-1.

88 Energy said there would be additional results from laboratory testing over the coming weeks.

"Laboratory tests from fluid hydrocarbons retrieved from the Lower Stellar discovery in the Torok Formation have confirmed gravity of between 49 and 52 degrees API, with an average of 50 degrees API," the board explained in its statement.

"This gravity is near the typical crossover between volatile oil and condensate, however constant composition expansion confirms that the phase at this location is condensate gas.

"The gas oil ratio as measured from the most representative sample is between 17,000 and 23,500 cubic feet per barrel."

88 Energy said that could be higher than the actual gas oil ratio in the reservoir, due to the sampling procedure and drawdown pressure.

"The main implication of having a high gas oil ratio is that gas would need to be re-injected into the reservoir to maintain pressure during production - an already common practice on the North Slope for both oil development and at the Point Thomson condensate stripping operation."

At 1541 BST, shares in 88 Energy were down 8.16% at 0.28p.

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