88 Energy Limited (LON:88E) has now completed analysis of core samples from the ‘super highway’ zone of the Icewine shale well, in Alaska, and it is impressed with the results.

Further analysis for permeability was required because prior examination gave readings that were too high to be measured by traditional methods.

Subsequent analysis has now indicated that the permeability in the ‘super highway’ sections are some 20 times greater than 88 Energy’s pre-drill forecasts.

It boosts already excellent permeability number measured in prior testing, the company highlighted.

Measures of permeability – the relative ease at which a porous material allows liquids to pass through it – are significant indicators for exploration companies as they assess the potential for oil to flow through reservoir rocks.

It is particularly significant for shale projects, where horizontal drilling typically aims to access vast surface areas of oil and gas bearing shale rocks.

That the Icewine well generally, and the ‘super highway’ sections particularly, have seen high levels of permeability bodes well for the planned production testing.

Indeed, 88 Energy added that the latest findings provide further encouragement for the potential for high flow rates from planned production flow testing with the next Icewine well.

Permitting work is currently underway for Icewine 2, which will be drilled horizontally and will be fracked before production testing.

At the same time 88 Energy told investors that a 2D seismic programme to assess follow on conventional exploration targets has now also started on schedule.

And progress is being made on a new independent resource report for the project, which is expected to be released in early-to-mid April.

Dave Wall, 88 Energy managing director, said: “As expected, the permeability results from the ‘super highways’ are excellent and provide further support for a resource play that could yield production rates more akin to those normally experienced in conventional wells.

“An increasing body of evidence from Icewine#1 supports a case for potentially exceptional flow rates from the HRZ. The next step is to test this theory via the drilling of Icewine#2H, which will be a horizontal well with a multi-stage fracture stimulation.”

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