88 Energy Ltd Significant Conventional Potential Identified at Icewine
October 18 2016 - 2:00AM
UK Regulatory
TIDM88E
18 October 2016
This announcement contains inside information
Significant Conventional Potential Identified at Project Icewine
88 Energy Limited ("88 Energy", "the Company", "Operator") (ASX, AIM: 88E) is
pleased to provide an update on Project Icewine, located onshore North Slope of
Alaska (77.5% working interest, 88 Energy).
Highlights
* Interpretation of modern 2D seismic data acquired by 88 Energy in early
2016 has identified multiple large conventional leads in Brookian Sequence
across the Project Icewine acreage
* 758 million barrels of prospective mean recoverable oil (gross) identified
in current top 5 leads (587 million barrels net to 88E, based on internal
estimates) *
* "Alpha" lead located in close proximity to existing transport
infrastructure and Trans Alaskan Pipeline with 118 million barrels
prospective mean recoverable oil (gross)*
* Further seismic interpretation and mapping ongoing: 50% complete with
potential for additional leads to be identified
Seismic Interpretation and Mapping
88 Energy has progressed the interpretation of the 2D seismic data acquired
early in 2016. Based on the preliminary interpretation 88E has identified a
number of encouraging conventional leads within the Brookian sequence. These
leads are predominantly stratigraphic and considered to be associated with
slope apron and basin floor fan systems. Although at an early stage of
assessment 88E is encouraged and considers them to have similar potential to
other productive fan plays identified on the North Slope. At this interim stage
approximately 20 leads have been provisionally mapped across the Icewine
acreage of which five key leads have been prioritised for early maturation and
are summarised in Table 1 below.
Table 1: Prospective Oil Resources (Unrisked Recoverable)* for Current Top 5
Ranked Leads
Name P90 P50 P10 Mean Mean (Net to 88E- WI:
(Gross) 77.5%)
Alpha 19 71 263 118 91
Bravo 129 245 449 273 212
Golf 60 115 210 128 99
India 61 116 212 129 100
Juliet 52 99 181 110 85
Total 758 587
* Prospective resources classified in accordance with SPE-PRMS as at 18th
October 2016 using probabilistic and deterministic methods on an unrisked
basis. Leads identified from interpretation of modern 2D seismic acquired in
2015/2016 across Project Icewine, which comprises 271,119 gross acres on the
Central North Slope of Alaska. 88 Energy is Operator of record at Project
Icewine (through its wholly owned subsidiary Accumulate Energy Alaska, Inc)
with a 77.5% working interest.
Cautionary Statement: The estimated quantities of petroleum that may be
potentially recovered by the application of a future development project relate
to undiscovered accumulations. These estimates have both an associated risk of
discovery and a risk of development. Further exploration, appraisal and
evaluation are required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
88E is encouraged by the potential resource size of the leads and will
undertake further technical work in order to mature the evolving conventional
portfolio from which future likely drilling candidates will be selected.
Additional information on Project Icewine and the Alpha and Bravo leads, which
the Company believes are representative of the play potential across the
Icewine acreage, is set out in the pdf version of the announcement which is
available on the Company's website www.88energy.com.
88E will provide further updates to the market as the technical work
progresses.
Managing Director of 88 Energy Limited, Dave Wall commented:
"Whilst the HRZ remains the Company's primary target and the focus of our
short-term activity with the upcoming Icewine#2 well scheduled for spud in the
first quarter of next year, the interim results from the 2D seismic acquired
earlier this year have significantly exceeded our expectations.
It has taken a little longer than initially planned to process and interpret,
as the number of features we are seeing is greater than anticipated. Further
interpretation and analysis is ongoing and the final findings from that process
will be announced later in the year.
We expect the two recent billion barrel discoveries in the Brookian sequence by
both Armstrong Oil & Gas and Caelus Energy to be a catalyst for increased
industry interest in the region. Whilst not strictly analogous to the Brookian
play potential at Project Icewine, these discoveries highlight the significant
conventional oil resource on the North Slope yet to be discovered through
utilisation of modern seismic technology."
Media and Investor Relations:
88 Energy Ltd
Dave Wall, Managing Director Tel: +61 8 9485 0990
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Hartleys Ltd
Dale Bryan Tel: +61 8 9268 2829
Cenkos Securities
Neil McDonald/Derrick Lee Tel: +44 131 220 6939
Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting contained
in this announcement was prepared by, or under the supervision of, Mr Brent
Villemarette, who is a Non Executive Director of the Company. Mr Villemarette
has more than 30 years' experience in the petroleum industry and is a qualified
Reservoir Engineer who has sufficient experience that is relevant to the style
and nature of the oil prospects under consideration and to the activities
discussed in this document. His academic qualifications and industry
memberships appear on the Company's website and both comply with the criteria
for "Competence" under clauses 18-21 of the Valmin Code 2005. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.
About 88 Energy: 88 Energy has a 77.5% working interest and operatorship in
271,000 acres onshore the prolific North Slope of Alaska ("Project Icewine").
The North Slope is the host to the 15 billion barrel Prudhoe Bay oilfield
complex, the largest conventional oil pool in North America. The Company, with
its Joint Venture partner Burgundy Xploration, has identified three highly
prospective play types that are likely to exist on the Project Icewine acreage
- two conventional and one unconventional. The large unconventional resource
potential of Project Icewine was independently verified by leading
international petroleum resource consultant DeGolyer and MacNaughton. In
addition to the interpreted high prospectivity, the project is strategically
located on a year-round operational access road and only 35 miles south of Pump
Station 1 where Prudhoe Bay feeds into the Trans Alaska Pipeline System. The
Company has recently acquired 2D seismic to take advantage of the globally
unique fiscal system in Alaska, which allowed for up to 75% of 1H2016
exploration expenditure to be rebated in cash. Interim results from this
seismic are encouraging, having identified several large leads. In late 2015,
the Company completed its maiden well at the project, Icewine#1, to evaluate an
unconventional source rock reservoir play which yielded excellent results from
analysis of core obtained from the HRZ shale. A follow-up well with a
multi-stage stimulation and test of the HRZ shale, Icewine#2, is planned for
1Q2017.
END
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