88 Energy Ltd Significant Conventional Potential Identified at Icewine

 
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: [phone] 
Finlay Thomson, Investor Relations               Tel: [phone] 
 
Hartleys Ltd 
Dale Bryan                                       Tel: [phone] 
 
Cenkos Securities 
Neil McDonald/Derrick Lee                        Tel: [phone] 
 
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 
 

(END) Dow Jones Newswires

October 18, 2016 02:00 ET (06:00 GMT)