88E: Conventional prospectivity review complete & Icewine2 update
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.
Highlights
·Conventional Prospectivity Review by 88 Energy over Project Icewine complete
·Additional resource potential identified for conventional leads across Project Icewine acreage, based on internal estimates totalling:
o 710 million barrels of gross mean Prospective Resources (unrisked)
o 550 million barrels of net mean Prospective Resources to 88 Energy (unrisked)
·Total Resource Potential (conventional only), including previously reported leads:
o 1.47 billion barrels gross mean Prospective Resources (unrisked)
o 1.14 billion barrels net mean Prospective Resources to 88 Energy (unrisked)
·Plan of Operations for Icewine#2 Production Test Well approved – Late December 2016
Managing Director of 88 Energy Limited, Dave Wall commented: “The results from the 2D seismic interpretation continue to exceed our expectations for the conventional potential across Project Icewine.
Whilst the conventional Prospective Resource is very large, it is eclipsed by the potential of the HRZ, especially given the recently expanded acreage position. Additionally, the HRZ has been de-risked via analysis of the results from Icewine#1 and remains the Company’s primary objective.
Preparations for the drilling of Icewine#2, which will test the production potential of the HRZ, remain on track and we look forward to providing further news on this front over the coming months, in the lead up to spud.”
Permitting Update
On December 23rd, the Lease Plan of Operations for Icewine#2 was approved by the Alaska Department of Natural Resources, Division of Oil and Gas. The only remaining permit, the Permit to Drill, is typically submitted post the approval of all other permits, in the lead up to final drilling preparations. No issues are expected in relation to its approval prior to the planned spud date for Icewine#2. Icewine#2 remains on schedule for late Q1 spud and has been designed to test the production potential of the HRZ interval.
Conventional Prospectivity Review – Results
88 Energy has completed the interpretation of the 2D seismic data acquired/ licensed by the Company early in 2016 across Project Icewine and is encouraged by the results of the technical evaluation. Stacking of Leads mapped in the Central region and on the Western margin of Project Icewine may, on maturation, offer the opportunity to test multiple objectives with one exploration well.
The principal objective of the seismic acquisition program, which was to evaluate the conventional prospectivity across Project Icewine, has been achieved. A conventional Prospect and Lead Portfolio has been been developed to complement the unconventional Prospective Resource potential already recognised in the HRZ liquids rich resource play.