- XCD Energy (XCD) has received confirmation from Conoco Phillips that it has encountered hydrocarbons from drilling at the Harpoon Prospect
- This is encouraging news for XCD as Harpoon is located just 15 kilometres northwest of its Project Peregrine lease
- Unfortunately, the COVID-19 pandemic cut the drilling program short
- Nevertheless, the companies are encouraged by this result and will reinitiate explorations in the near term
- XCD’s shares are down 12.5 per cent, trading for 0.7 cents each
XCD Energy (XCD) has received confirmation from Conoco Phillips that it has encountered hydrocarbons from drilling at the Harpoon Prospect.
The Harpoon Prospect is located roughly 15 kilometres northwest of XCD Energy’s Project Peregrine lease position which covers an area of 195,373 acres within the National Petroleum Reserve – Alaska (NPRA) on Alaska’s prolific North Slope.
This news is encouraging to XCD as the Harpoon Prospect is interpreted to be directly on-trend and comparable to its Harrier Prospect.
This latest success follows up two well successful drilling campaign in the Nanushuk sequence by Oil Search and further validates the play that XCD Energy is pursuing in this area.
“This is yet another excellent exploration result from this season’s drilling campaign that validates our strategy of pursuing the Nanushuk play in the NPR-A,” XCD Managing Director Dougal Ferguson said.
Unfortunately, the COVID-19 pandemic led Conoco Phillips to cut short its North Slope exploration and development drilling program including on the Harpoon Prospect. However, the company is highly encouraged by encountering hydrocarbons in the only well its drilled in the area.
“This clearly provides us with necessary encouragement to reinitiate our farm-out campaign,” Dougal added.
XCD’s shares are down 12.5 per cent, trading for 0.7 cents each at 3:55 pm AEST.