Icewine testing recommences, says 88 Energy

Energy investment company 88 Energy updated the market on Project Icewine, located onshore North Slope of Alaska, on Monday, confirming that the Icewine#2 well was shut-in on 10 July to allow for imbibition and pressure buildup to occur within the HRZ shale.

The AIM-traded firm said flow testing re-commenced on 31 August, and was ongoing.

Accumulate Energy Alaska, a wholly-owned subsidiary of 88 Energy, has a 77.55% working interest in the well, which was stimulated in two stages over a gross 128 foot vertical interval in the HRZ shale formation, from 10,957-11,085 feet true vertical depth using a slickwater treatment comprising 27,837 barrels of fluid and 1,034,838 pounds of proppant.

“The well was initially flowed back on a 6/64 inch choke and was reduced to a 4/64 inch choke after 26 hours to maintain pressure,” the board said in its statement.

“Approximately 370 barrels of frac fluid had been recovered as at 3 September at an average rate of 100 barrels per day.”

Hydrocarbon indications had been minor and were associated only with the formation of gas hydrates in the choke manifold, the board explained.

Methanol injection had been initiated to prevent the surface manifold equipment from freezing, thereby ensuring free flow of produced fluids through the choke.

“Wellhead pressure built to [around] 3,500psi during shut-in and has dropped to 1,130psi since flowback commenced.

“Initial analysis of the pressure data from both the build-up and flowback indicates limited connection to the reservoir prior to the last 24 hours.”

On 2 September, a small pressure buildup was observed, potentially indicating the first contribution to pressure from the reservoir itself, 88 Energy said.

“This is the first time that this has occurred since flow testing was initiated, including the previous testing period prior to shut-in.

“To date the cumulative amount of stimulation fluid produced from both testing periods is 4,802 barrels, 17.25% of fluids injected.”

The current flowback procedure was early stage, 88 Energy’s board claimed, and the significance of an implied pressure contribution from the reservoir and formation of gas hydrates could not yet be determined.