TIDM88E
RNS Number : 7248H
88 Energy Limited
08 April 2022
This announcement contains inside information
8 April 2022
88 Energy Limited
Project Icewine - Preliminary Mapping Complete, Resource
Update Pending, Farm-In Discussions Advancing
Highlights
-- Preliminary third-party mapping of the Shelf Margin Delta
(SMD) play indicates extension of the SMD play fairway, where
neighbour Pantheon Resources has had significant success in recent
months, onto 88E's Project Icewine leases.
-- Mapping of Seabee Lower Basin Floor Fan (BFF) and Slope Fan
System (SFS) approaching finalisation.
-- Completion of independent resource update for Project Icewine scheduled for Q2 2022.
-- Discussions and negotiations with potential Project Icewine farm-in parties ongoing.
-- Development of forward work-program to assess the potential
of the SMD, SFS and BFF play fairways on the Project Icewine
acreage is progressing.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or
the Company ) is pleased to report that the ongoing assessment of
the SMD, SFS and BFF play fairways onto its Project Icewine acreage
(75% 88 Energy WI) is progressing as planned.
Preliminary independent third-party mapping using available well
information from presentations publicly released by neighbouring
acreage holder, Pantheon Resources (AIM:PANR) ( Pantheon ), plus
internal 88E data, including Icewine-1 and Icewine-2 well logs and
existing 2D seismic, indicates that all play fairways extend into
the Project Icewine lease holding.
The source rocks (GRZ/HRZ) for the Brookian plays within the
Project Icewine area are modelled to be within the oil mature
window, with historical wells reporting abundant oil shows and
interpreted oil saturations from electric log data.
Recent Pantheon wells - Alkaid-1, Talitha-A and Theta West-1 -
have flowed 35 to 40 API oil from multiple Brookian reservoirs.
Pantheon testing has confirmed reservoir deliverability of light,
sweet oil (see Pantheon releases of 7 and 21 February 2022), which
88 Energy believes is positive for the prospectivity of the
adjacent Project Icewine acreage.
Pantheon drilled the Talitha-A well, which is located just 2.8
miles north of the Project Icewine permit boundary, in Q1 2021. The
well was suspended following a production test of the Kuparuk, with
Pantheon announcing its intention to return to test additional
targets, namely the BFF, the SFS and the SMD, during the 2022
drilling season. Earlier this year, Pantheon re-entered the
Talitha-A well and individually flow-tested the BFF target and the
SFS target, which resulted in the sustained recovery of light oil
over a three-day period from each test. All targets are interpreted
by the Company, and independently, to extend into the Project
Icewine acreage.
The results of Pantheon's Talitha-A well, combined with its
earlier Alkaid-1 (2019) well, have been considered as part of a
re-evaluation of 88 Energy's Icewine-1 well data. Subsequent and
independent comparisons of the zone that was tested and flowed
light oil in Alkaid-1 at "80-100 BOPD light oil" (see Pantheon
release of 25 March 2019) against the Icewine-1 well, have revealed
the porosity and resistivity of a similar 110 ft net section in
Icewine-1 well to be higher. Higher porosity is indicative of
better reservoir quality and higher resistivity is an indicator
that greater amounts of hydrocarbons are present. Given the
favourable petrophysical comparison between Icewine-1 and Alkaid-1,
the Company is optimistic that a production test in the Eastern
Icewine acreage could yield a similar or better result than seen
during the testing of Alkaid-1.
Following the successful testing at Talitha-A, Pantheon moved to
test the BFF fan prospect in their Theta West well, reporting
"light 35.5-38.5 degree API gravity oil at rates that averaged over
57 barrels of oil per day" (see Pantheon release of 24 March 2022).
All reported Pantheon tests to date have been performed on
vertical, stimulated wells.
Following the recent results from the Talitha-A and Theta West-1
wells drilled by Pantheon, 88 Energy has a positive view of the
potential of the SMD, SFS and BFF play fairways that extend onto
the Icewine acreage. In particular, the Company notes the relative
consistency of results over a large area to the north, suggestive
of reasonably homogeneous reservoirs that potentially extend into
88 Energy's acreage. The Company also notes Pantheon's planned
development wells are expected to produce at rates of over 1,000
BOPD per well via long horizontal wells with multi-stage hydraulic
fracturing technology (see Pantheon release of 24 January
2022).
88 Energy is in the process of finalising mapping of the SFS and
BFF play fairways onto the Icewine acreage and expects this work to
be completed in April 2022. Once complete, the combined mapping of
the three prospects (SMD, SFS and BFF) is set to form the basis of
an updated resource estimate at Project Icewine, scheduled for
completion in Q2 2022.
88 Energy advises that it is in ongoing discussions in relation
to a potential farm-out of the Project Icewine acreage. Due
diligence activities and negotiations are advancing with regard to
the potential farm-in by a third party and the related work program
terms and structure. Execution and completion of the potential
transaction is not guaranteed and remains subject to all final
documentation being agreed and due diligence completed. There is no
guarantee that negotiations will lead to a binding agreement or a
completed transaction.
The below graphics can be viewed in the pdf version of this
announcement, which is available on the Company's website
www.88energy.com :
-- Figure 1: Preliminary third-party mapping of SMD indicates
extension of play fairway onto Project Icewine
-- Figure 2: Shelf Margin Delta Sequence Correlation Panel
-- Figure 3: Map of Project Icewine and Near Lease Discoveries
This announcement has been authorised by the Board.
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Fivemark Partners , Investor and Tel: +61 410 276 744
Media Relations Tel: +61 422 602 720
Andrew Edge / Michael Vaughan
EurozHartleys Ltd Tel: +61 8 9268 2829
Dale Bryan
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 resource and
reserve 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.
About Project Icewine
Project Icewine is located on the central North Slope of Alaska
and encompasses approximately 195,000 acres. It is situated
on-trend to recent discoveries in multiple, newly successful play
types in topset and bottom-set sands of the Schrader Bluff and
Seabee formations. 88 Energy has a 75% working interest in the
Project.
88 Energy has acquired 2D and 3D seismic and drilled three
exploration wells in the acreage, including the Charlie-1 discovery
well in Q1 CY2020.
Prospects Formation Low Best High Mean
---------------- ---- ----- ------ ---------
Seabee / Basin
Lima Complex Floor Fan 214 978 2,804 1,419
---------------- ---- ----- ------ ---------
Toro / Basin
Stellar Fan 1-6 Floor Fan 79 248 722 355
---------------- ---- ----- ------ ---------
TOTAL MEAN PROSPECTIVE OIL RESORCE 1,774(2)
---------
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END
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