88 Energy reveals billion-barrel resource in Alaska

Alaskan explorer 88 Energy has announced a maiden gross mean, unrisked resource estimate of 1.03 billion barrels on the central North Slope of Alaska. The Icewine East project is spread over an area of 185,320 net acres. 88 Energy holds a 75 per cent working interest in the project.

The maiden resource estimate is based on well logs from the previously drilled exploration well Icewine 1, seismic data, data from other wells in the region, recent petrophysical analysis and geophysical mapping. The Independent Prospective Resource Report was completed by American firm Lee Keeling and Associates, a specialist in Alaskan resource assessments in addition to other projects globally.

Resources are distributed between four separate reservoir zones within the Icewine East project area. Whilst 88 Energy drilling has not yet recovered any oil from its exploration wells within Icewine East, adjacent explorer to the north, Pantheon, have flowed 35 to 40 degree oil to surface in quantities of 57 to 100 barrels per day. There are no commercial fields in the immediate vicinity of the Icewine East.

This maiden, independently certified 1.03 Bnbbls of oil resource estimate is a great result for 88E and its shareholders. Resources of this magnitude present our shareholders with significant upside potential and opportunity, which is why we continue to focus on our Alaskan portfolio and believe significant value exists in our Icewine East acreage.

88 Energy has previously contracted out all of its prospect mapping to independent consultants after licensing of a 3D survey acquired by independent third-party contractors. 88 Energy intends to drill its next exploration well sometime next year based on highly specialised amplitude versus offset analysis of the data, in order to identify potential sweet spots for drilling targets.

According to recent presentations by management, 88 Energy plans to fund future drilling via a farm-down.

88 Energy has drilled three exploration wells in its Icewine project area.

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