TIDM88E
RNS Number : 4891G
88 Energy Limited
07 November 2018
7(th) November 2018
88 Energy Limited
Yukon Leases Maiden Resource and Conventional Portfolio
Highlights
88 Energy Limited (ASX: 88E) ("88 Energy" or the "Company")
provides the following update related to ongoing work on its
conventional prospect portfolio at Project Icewine, located on the
Central North Slope, Alaska.
Highlights
-- Yukon Leases Maiden Resource: Net Mean Prospective Oil Resource - 90 MMBO
o Cascade lead upgraded to prospect - Brookian Turbidite Fan
Play
o Additional prospectivity mapped within Staines Tongue Topset
Play
-- Project Icewine Net Mean Prospective Oil Resource - 2,211 MMBO
o Farm-out process continues as planned, with deal targeted
prior to year-end 2018
-- Western Blocks Net Mean Prospective Oil Resource - 144 MMBO
o Stacked Brookian objectives including Nanushuk Topset Play
o The Winx-1 well is on schedule to commence drilling in
February 2019
-- 88 Energy Total Conventional Net Mean Prospective Oil Resource - 2,445 MMBO
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.
Yukon Leases Conventional Resource - 90 MMBO (100% 88E mean
prospective resource)
The Yukon 3D seismic, acquired in 1Q2018 by the Company, has
been fast track processed and mapping undertaken to assess the
maiden prospective resource associated with three sand bodies
identified on the leases. The largest of these is the Cascade
Prospect, which contains 92% of the preliminary mapped resource on
the Yukon Leases. The Cascade prospect is interpreted to have been
intersected in a downdip location by the vintage Yukon Gold-1 oil
discovery well.
Yukon Gold-1 was drilled in 1993 and discovered two oil
saturated sands in the Canning Formation with porosities exceeding
18%. Up until the recent (2016) commissioning of infrastructure at
the nearby Point Thomson gas/condensate/oil field, an accumulation
of this size would have been considered stranded. Internal
modelling suggests that break-even development price is now less
than US$40/bbl. Next steps will involve generation of an inversion
3D volume to further delineate and de-risk current mapping. An
update is planned for 1Q 2019.
YUKON LEASES
Prospective Oil Resource MMBO (Unrisked)
Prospects and Leads November 2018
-------------------------------------------------
Horizon / Play Low Best High Net Mean
to 88E
---------------- ----- ----- ------ ---------
Canning / Fan,
Cascade Prospect channel 23.7 64.0 162.0 82.3
---------------- ----- ----- ------ ---------
Staines Tongue
PETM 1 / Topset 3.3 5.7 9.9 6.2
---------------- ----- ----- ------ ---------
Staines Tongue
PETM 2 / Topset 0.2 0.8 2.3 1.1
---------------- ----- ----- ------ ---------
YUKON LEASES TOTAL: 89.6
---------
Prospective Resources classified in accordance with SPE-PRMS as
at 7(th) November 2018 using probabilistic and deterministic
methods on an unrisked basis. Prospects and Leads identified from
interpretation of modern 3D seismic acquired in 2018 across the
Yukon Leases, which comprises 14,194 gross acres on the Central
North Slope of Alaska. 88 Energy is Operator of record at the Yukon
Leases (through its wholly owned subsidiary Regenerate Alaska, Inc)
with a 100% working interest.
Project Icewine Conventional - 2,896 MMBO (88E: 2,211 MMBO net
mean prospective resource)
The Company recently updated the conventional prospective
resource at Project Icewine based on the newly processed 3D
inversion dataset. This data highlighted features, such as feeder
channels, associated with the prospects, providing further
confidence in the mapping and the geological model. Additionally,
further analysis has provided positive insights into the prospects
/ discoveries identified in the shallow Schrader Bluffs Formation
as well as the deeper Torok Formation. These insights are
particularly encouraging by comparison to recent successful
production testing in the Nanushuk Formation discoveries made over
the last four years on the North Slope.
A farm-out process is currently underway, with a deal targeted
prior to year-end.
PROJECT ICEWINE CONVENTIONAL PORTFOLIO
Prospective Oil Resource MMBO (Unrisked)
Prospects and Leads October 2018: Post 3D Inversion Results
----------------------------------------------------------
Horizon / Play Low Best High Gross Net
Mean Mean
to 88E
------------------- ---- ----- ----- ------- --------
WESTERN PLAY FAIRWAY:
----------------------------------------------------------
Victor Prospect (stacked) Schrader / Topset 196 313 477 328 254
------------------- ---- ----- ----- ------- --------
Indigo Discovery Schrader / Topset 225 358 543 374 290
------------------- ---- ----- ----- ------- --------
Charlie Prospect Schrader / Topset 126 201 304 210 163
------------------- ---- ----- ----- ------- --------
Bravo Prospect Seabee / Fan 57 138 292 160 124
------------------- ---- ----- ----- ------- --------
Mike Prospect Seabee / Fan 9 26 56 30 23
------------------- ---- ----- ----- ------- --------
Rose Prospect Seabee / Fan 7 21 44 24 19
------------------- ---- ----- ----- ------- --------
Lima Discovery/ Prospect Seabee / Apron
(stacked) Fan 105 323 713 376 334
------------------- ---- ----- ----- ------- --------
Torok / Apron
Heavenly Discovery Fan 23 62 120 68 58
------------------- ---- ----- ----- ------- --------
Torok / Apron
Whiskey Prospect (stacked) Fan 62 112 192 118 101
------------------- ---- ----- ----- ------- --------
Stellar Prospect/Discovery Torok / Fan,
(stacked) channel 320 604 999 639 500
------------------- ---- ----- ----- ------- --------
Y Lead Schrader / Topset 24 41.2 67 44 34
------------------- ---- ----- ----- ------- --------
Z Lead Schrader / Topset 11 27 53 29 22
------------------- ---- ----- ----- ------- --------
WESTERN PLAY FAIRWAY TOTAL: 2,400 1,922
------- --------
CENTRAL PLAY FAIRWAY:
----------------------------------------------------------
Echo Lead Canning / Fan 60 138 293 162 121
------------------- ---- ----- ----- ------- --------
Golf Lead Canning / Fan 106 193 339 211 72
------------------- ---- ----- ----- ------- --------
CENTRAL PLAY FAIRWAY TOTAL: 373 193
------- --------
EASTERN PLAY FAIRWAY:
----------------------------------------------------------
Alpha Lead Canning / Fan 19 71 263 118 91
------------------- ---- ----- ----- ------- --------
Romeo Lead Kuparuk Sands 2 3 5 4 3
------------------- ---- ----- ----- ------- --------
Sierra Lead Kuparuk Sands 1 2 3 2 2
------------------- ---- ----- ----- ------- --------
EASTERN PLAY FAIRWAY TOTAL: 124 96
------- --------
TOTAL PROSPECTIVE OIL RESOURCE MMBO (Mean Unrisked) 2,896 2,211
------- --------
Prospective Resources classified in accordance with SPE-PRMS as
at 22(nd) October 2018 using probabilistic and deterministic
methods on an unrisked basis. Prospects and Leads identified from
interpretation of modern 3D seismic acquired in 2018, 2D seismic
acquired in 2015/2016 and legacy 2D seismic of varying vintages
post 1980 across Project Icewine, which comprises 504,000 gross
acres (332,000 net 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 80% working
interest over the conventional play fairway where the leads have
been mapped.
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.
Western Blocks Conventional - 400 MMBO (88E: 144 MMBO net mean
prospective resource)
The Western Blocks comprise four leases (totalling 22,711 acres)
immediately adjacent to the Horseshoe#1/1A oil discovery well,
which forms part of the billion barrel plus Nanushuk Oil Fairway.
The Winx-1 well will be drilled in 1Q 2019 and is targeting a
prospect with a gross mean unrisked prospective resource volume of
400MMBO (144MMBO net to 88E - refer Company announcement 25(th)
June 2018). Two of the objectives to be tested in the Winx-1 well
are within the Nanushuk Formation and on success would prove up an
extension of the play 4 miles to the east of the current
fairway.
A pdf version of this announcement, including images relating to
the Company's portfolio, can be accessed at the following link -
http://www.rns-pdf.londonstockexchange.com/rns/4891G_1-2018-11-6.pdf
Media and Investor Relations:
88 Energy Ltd
Dave Wall, Managing Director Tel: +61 8 9485 0990
Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Hartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
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, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 35
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified Geologist /
Geophysicist 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. Dr Staley has reviewed
the information and supporting documentation referred to in this
announcement and considers the prospective resource estimates to be
fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and
industry memberships appear on the Company's website and both
comply with the criteria for "Competence" under clause 3.1 of the
Valmin Code 2015. Terminology and standards adopted by the Society
of Petroleum Engineers "Petroleum Resources Management System" have
been applied in producing this document.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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