- XCD Energy (XCD) has unveiled a maiden independent prospective resource of 1.6 billion barrels for its Alaskan project
- This amount is significantly higher than the estimate of 225 million barrels of oil which was predicted in September last year
- XCD’s share price is currently up 8.33 per cent with shares trading for 1.3 cents apiece
XCD Energy (XCD) has unveiled a maiden independent prospective resource of 1.6 billion barrels for its Peregrine Project.
This amount is significantly higher than the estimate of 225 million barrels of oil that the company announced last September.
“This excellent result is the culmination of a substantial amount of technical work that has been undertaken over the last six months,” XCD Managing Director Dougal Ferguson commented.
“We are now able to embark on our farm-out campaign with confidence that the size of the prize is significant enough in our lease to attract large companies,” he added.
The Project Peregrine leases have five to ten year exploration period remaining and cover an area of 195,373 acres within the NPR-A (National Petroleum Reserve-Alaska).
The leases are around 35 kilometres south of the Willow discoveries owned and operated by ConocoPhillips estimated to be between 450-800 MMBOE (million barrels of oil equivalent).
ConocoPhillips have announced they are drilling five further appraisal wells during this year’s winter drilling season.
XCD’s Merlin Prospect is interpreted to be on the same sequence boundaries as the Willow Oil Field.
In addition, ConocoPhillips announced its intention to drill up to three exploration wells on its Harpoon Prospect which does approximately 15 kilometres north west of XCD’s Harrier Prospect.
The company interprets the Harpoon Prospect to be on the same sequence boundaries as Harrier and success at Harpoon would likely upgrade XCD’s Harrier Prospect.
Both the Harrier and Merlin prospects are targeting the shallow Nanushuk play and can potentially be drilled using a smaller drilling rig.
The Harrier Deep Prospect would require a standard north slope drill rig to reach the Torok target, but would intersect both the shallow Nanushuk and deep Torok objectives in the same wellbore.
XCD will shortly be initiating a farm-out campaign where the options available to farm-in partners will be to pursue either the two well low cost shallow Nanushuk drilling initiative or use a standard north slope drilling rig to pursue all the targets in the Harrier and Merlin prospects.
“With a raft of wells being drilled in both the NPR-A and State lands by other companies over the current Alaskan drilling season, it should be an exciting period for XCD and any success nearby will significantly upgrade our current lease position,” Dougal concluded.
XCD’s share price is up 8.33 per cent with shares currently trading for 1.3 cents apiece at 1:40 pm AEDT.