88 Energy Limited has updated the market on its operations during the quarter ended 30 September, which ended with A$36mln in the bank and no debt.

At the Project Peregrine, the Merlin-1 well showed the presence of oil in multiple stacked sequences, while geochemical analysis demonstrates definitive evidence of light oil, with estimated API gravity of 35-42.

READ: 88 Energy maxes out share sale to raise A$23.96mln

The project’s prospective resource estimates were updated by an independent consultant, ERCE, and a Merlin-2 appraisal well is planned for the first quarter in 2022.

Three potential Merlin-2 locations were selected to the east of Merlin-1, where enhanced reservoir thickness and quality are expected, and Merlin-2 is targeting net mean aggregate prospective resource of 652mln barrels.

Further studies at the Umiat Oil Field have identified additional upside, so the AIM-listed group is evaluating potential synergies with Project Peregrine.

At the Project Icewine, analysis of Pantheon Resources’ nearby Talitha-A well results continues and initial studies indicate potential for extension onto Project Icewine acreage.

Finally, 88 Energy is discussing with lease owners near the Yukon Leases seeking to aggregate resources into joint development of the area. Planning for future potential exploration drilling is ongoing based on negotiations.

Shares rose 1% to 1.68p on Friday morning.

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