REG - 88 Energy Limited - North Slope 2022W Leasing Update

88 EnergyAnnouncement

10/11/2022 07:00

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RNS Number : 9636F  88 Energy Limited  10 November 2022

This announcement contains inside information

 

88 Energy Limited

North Slope 2022W Leasing Update

Highlights

·   88 Energy Limited, (via its wholly owned subsidiary, Captivate Energy
Alaska, Inc) announced as the highest bidder on 10 leases covering
approximately 25,600 contiguous acres immediately south of Prudhoe Bay on the
North Slope of Alaska.

·   The acreage, referred to as Project Leonis, is covered by the existing
Storms 3D seismic data suite and contains the historical exploration well Hemi
Springs Unit #3 (drilled by ARCO in 1985).

·   Project Leonis is superbly located adjacent to TAPS and the Dalton
Highway, enhancing future potential development commercialisation.

·   A review of the Hemi Springs Unit #3 well indicated over 200 foot of
logged net pay in the Upper Schrader Bluff (USB) reservoir, with good porosity
and oil shows evident over the interval.

·   Initial internal interpretation of the Storms 3D indicates a prospect
at the USB reservoir interval that appears to be bound by faults on 3 sides.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to announce that on the 9(th) November 2022 (AK time) its wholly owned
subsidiary Captivate Energy Alaska, Inc. was declared the highest bidder for
select acreage offered as part of the North Slope Areawide 2022W Oil and Gas
lease sale. The Company's new acreage will be known as Project Leonis (the
Project) and comprises 10 leases covering approximately 25,600 contiguous
acres.

The new Project Leonis leases remain subject to an adjudication process,
regulatory approvals and formal award which is expected in 1H 2023. The
Project is superbly located adjacent to TAPS and the Dalton Highway, enhancing
future potential development commercialisation.

Project Leonis is covered by the existing, and recently purchased, Storms 3D
seismic data suite.  The acreage contains the historical exploration well
Hemi Springs Unit #3, drilled by ARCO in 1985 to target the deep Kuparuk and
Ivishak reservoirs. At the time, these were the main producing intervals in
the giant northern fields.

An initial review of the Hemi Springs Unit #3 well indicated over 200 feet of
low resistivity bypassed log pay within the Upper Schrader Bluff (USB)
reservoir, with good porosity and oil shows evident over this interval. The
USB reservoir has been successfully developed at the nearby Orion, Polaris,
West Sak and Milne Point oil fields.

An initial internal review and interpretation of the Storms 3D seismic data
reveals a strong seismic-well tie and a clear seismic amplitude at the USB
prospect level. Encouragingly, the prospect appears to be bound by faults on 3
sides which potentially serve as the trapping mechanism. Further work and
analysis will determine further potential of the acreage and define a possible
exploration program and timeline for the project.

Figure 1: 88 Energy existing acreage and new acreage awarded

Figure 2: Hemi Springs Unit #3 well and initial interpretation of regional
faulting

 

Managing Director, Ashley Gilbert, commented:

"Award of the new acreage demonstrates 88E's commitment to continued
exploration on the North Slope and presents as an attractive exploration
proposition. The acreage benefits from a historical well, which indicated oil
shows and calculated pay in the USB zone of interest, and an existing 3D data
suite.  There is much work to do to understand the regional setting and
faulting that defines the potential exploration target before deciding on any
future work program."

 

 

 

 

This announcement has been authorised by the Board.

 

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

Michael
Vaughan
                             Tel: +61 422 602 720

 

EurozHartleys Ltd

Dale
Bryan
Tel: + 61 8 9268 2829

 

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.

 

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