Join our daily newsletter At The Bell to receive exclusive market insights
- Oil and gas explorer 88 Energy (88E) has provided a positive update regarding Project Icewine on Alaska’s North Slope
- Independent assessment has estimated large prospective resources, totalling approximately 1.77 billion barrels of oil equivalent
- 88 Energy plans to attract a partner to fund drilling of additional wells and evaluate the Seabee formation’s flow potential
- The company is also on the cusp of drilling at another similarly sized opportunity at another 88E project, Project Peregrine
- 88 Energy closed 33.33 per cent higher to trade for 0.8 cents per share
Oil and gas explorer 88 Energy (88E) has provided a positive update regarding Project Icewine on Alaska’s North Slope.
ERCE Equipoise recently prepared independent resources estimates for prospects in the vicinity of the project’s Charlie-1 well. The assessment has estimated large prospective resources, totalling approximately 1.77 billion barrels of oil equivalent.
The majority of the resource is likely to be within the Seabee formation, a large stratigraphic accumulation over multiple sand bodies in the Lima Fan System. Since there has been no flow test at this horizon, reservoir deliverability is as yet undetermined.
88 Energy believes the company can attract a partner to fund drilling of additional wells, in order to evaluate the Seabee formation’s flow potential. The company is also optimistic about potential light oil in the Torok formation, which could substantially increase value.
88 Energy’s Managing Director, Dave Wall, commented on the significance of this new project update.
“The net potential to 88E in the Lima Fan System was estimated internally by 88E at around 100 million barrels prior to the drilling of Charlie-1,” he said.
“With this large independent upgrade and the recent increase in working interest in the leases, this potential has now improved to almost 900 million barrels net to 88E – an outstanding result for our shareholders,” he added.
Dave went on to say that resources of this size are why the company is operating in Alaska, and that 88 Energy is on the cusp of drilling at another similarly sized opportunity at another project, Project Peregrine.
88 Energy closed 33.33 per cent higher to trade for 0.8 cents per share.
