REG - 88 Energy Limited - Project Icewine – Independent Third-Party Mapping

88 EnergyAnnouncement

09/05/2022 14:45

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RNS Number : 8214K  88 Energy Limited  09 May 2022

This announcement contains inside information

88 Energy Limited

Project Icewine - Independent Third-Party Mapping Complete

Highlights

·    Third-party evaluation of the Icewine East mapping is now complete
(75% 88 Energy WI).

·    All Pantheon reservoir units (SMD, SFS and BFF) independently
interpreted to extend onto 88 Energy's Icewine acreage.

·   Pantheon wells - Alkaid-1, Talitha-A and Theta West-1 - have flowed
35⁰ to 40⁰ API oil from multiple Brookian reservoirs. Pantheon testing has
confirmed reservoir deliverability of light, sweet oil (see Pantheon releases
of 7 and 21 February 2022), which 88 Energy believes is positive for the
prospectivity of the adjacent Project Icewine acreage.

·   In-depth petrophysical re-evaluation of Icewine-1 and broader Icewine
East acreage has been completed, with the results indicating comparable, or
better, reservoir quality in some reservoir units relative to those of
Pantheon's tested intervals which flowed oil.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to report that the third-party (Jordan & Pay) evaluation of the
Shelf Margin Delta (SMD), Slope Fan Set (SFS) and Basin Floor Fan (BFF) play
fairways on its Project Icewine acreage is now complete.  The independent
third-party mapping, which utilised available well information from
presentations publicly released by neighbouring acreage holder, Pantheon
Resources (AIM:PANR, GBP 975M market capitalisation) (Pantheon), plus internal
88E data, shows that all Pantheon reservoir units extend onto the Project
Icewine acreage.

An in-depth petrophysical re-evaluation of Icewine-1 and the broader Icewine
East area has also been completed by independent petrophysical consultants
(Stimulation Petrophysics Consulting, LLC and Snowfall Energy LLC). The
consultants focussed on assessing Icewine-1 logs against intervals that flowed
oil in Pantheon's acreage to the north. Pleasingly, a comparison of the tested
interval in Alkaid-1 against a similar interval in Icewine-1, called the SMD-B
reservoir unit, indicated the favourable potential for a flow test of the same
zone in the Icewine acreage.

Table 1 contains a summary of the petrophysical data from these intervals. It
reveals similar porosity and clay content in Icewine-1 with, importantly,
higher oil saturation and productivity estimates in Icewine-1. These studies
have confirmed 88 Energy's preliminary analysis as previously announced on 8
April 2022, and accordingly, along with recent mapping efforts will form the
basis of an independent volumetric and risking certification, which is
expected to be completed in mid-2022.

                            Icewine-1  Alkaid-1
 Top                 feet   7815       8036
 Base                feet   8061       8250
 Gross Pay           feet   221        215
 Net Pay             feet   164        192
 Effective Porosity  %      8.8%       8.8%
 Clay Content        %      34%        35%
 Resistivity         ohm.m  7.7        5.1
 Oil Saturation      %      65%        49%
 Productivity        mD.ft  8.5        3.0

Table 1: Petrophysical comparison of zones of interest in Icewine-1 and
Alkaid-1.

Pantheon's wells - Alkaid-1, Talitha-A and Theta West-1 flowed 35 to 40⁰ API
oil from multiple Brookian reservoirs. Pantheon's testing has confirmed
reservoir deliverability of light, sweet oil (see Pantheon releases of 7
February and 21 February 2022), which 88 Energy believes is positive for the
prospectivity of the adjacent Project Icewine acreage. This data is not yet
publicly available and as a result only a qualitative comparison of these logs
against Icewine-1 logs could be carried out at this time.

Given the favourable petrophysical comparison between Icewine-1 and Alkaid-1,
the Company is optimistic that a production test in the Icewine East acreage
could potentially yield a similar or better result than seen during the
testing of Alkaid-1. The Company also notes Pantheon's plans to drill a
horizontal production well in mid-2022 in Alkaid, called Alkaid#2, to prove up
the development concept (see Pantheon release of 24 January 2022 and Figure 2
available on the Company's website).

 

The below graphics can be viewed at the following link
http://www.rns-pdf.londonstockexchange.com/rns/8214K_1-2022-5-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8214K_1-2022-5-9.pdf)

 

·  Figure 1: Third-party mapping indicates extension of all PANR prospect
play fairways into Project Icewine.

·    Figure 2: Pantheon plans for a horizontal production well in Alkaid.

·    Figure 3: Sweet-spot identification across the SMD-B and SMD-C play
fairways.

·    Figure 4: Shelf Margin Delta Sequence Correlation Panel.

·    Figure 5: Map of Project Icewine and Near Lease Discoveries.

 

Media and Investor Relations:

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 8 9485 0990

 Email:investor-relations@88energy.com

 Finlay Thomson, Investor Relations               Tel: +44 7976 248471

 Fivemark Partners, Investor and Media Relations  Tel: +61 410 276 744

 Andrew Edge / Michael Vaughan                    Tel: +61 422 602 720

 EurozHartleys Ltd                                Tel: +61 8 9268 2829

 Dale Bryan

 Cenkos Securities                                Tel: +44 131 220 6939

 Neil McDonald / Derrick Lee

 

 

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,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 35 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist/Geophysicist 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. Dr Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and reserve
estimates to be fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and industry
memberships appear on the Company's website and both comply with the criteria
for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.

 

 

About Project Icewine

 

Project Icewine is located on the central North Slope of Alaska and
encompasses approximately 195,000 acres. It is situated on-trend to recent
discoveries in multiple, newly successful play types in topset and bottom-set
sands of the Schrader Bluff and Seabee formations. 88 Energy has a 75% working
interest in the Project.

 

88 Energy has acquired 2D and 3D seismic and drilled three exploration wells
in the acreage, including the Charlie-1 discovery well in Q1 CY2020.

 

 Prospects        Formation                 Low      Best     High     Mean
 Lima Complex     Seabee / Basin Floor Fan  214      978      2,804    1,419
 Stellar Fan 1-6  Toro / Basin Floor Fan    79       248      722      355
 TOTAL MEAN PROSPECTIVE OIL RESORCE                                    1,774(2)

 

   Note:

   1.        Gross mean unrisked prospective resource.

   2.        Please refer to the ASX release dated 10 November 2020 for
   full details with respect to the Prospective Resource estimate, associated
   risking.

   3.        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.

 

 

 

 

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