REG - 88 Energy Limited - Project Icewine - Preliminary Mapping Complete

88 EnergyAnnouncement

08/04/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220408:nRSH7248Ha&default-theme=true

RNS Number : 7248H  88 Energy Limited  08 April 2022

This announcement contains inside information

8 April 2022

 

88 Energy Limited

Project Icewine - Preliminary Mapping Complete, Resource

Update Pending, Farm-In Discussions Advancing

Highlights

·   Preliminary third-party mapping of the Shelf Margin Delta (SMD) play
indicates extension of the SMD play fairway, where neighbour Pantheon
Resources has had significant success in recent months, onto 88E's Project
Icewine leases.

·    Mapping of Seabee Lower Basin Floor Fan (BFF) and Slope Fan System
(SFS) approaching finalisation.

·    Completion of independent resource update for Project Icewine
scheduled for Q2 2022.

·    Discussions and negotiations with potential Project Icewine farm-in
parties ongoing.

·    Development of forward work-program to assess the potential of the
SMD, SFS and BFF play fairways on the Project Icewine acreage is progressing.

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to report that the ongoing assessment of the SMD, SFS and BFF play
fairways onto its Project Icewine acreage (75% 88 Energy WI) is progressing as
planned.

Preliminary independent third-party mapping using available well information
from presentations publicly released by neighbouring acreage holder, Pantheon
Resources (AIM:PANR) (Pantheon), plus internal 88E data, including Icewine-1
and Icewine-2 well logs and existing 2D seismic, indicates that all play
fairways extend into the Project Icewine lease holding.

The source rocks (GRZ/HRZ) for the Brookian plays within the Project Icewine
area are modelled to be within the oil mature window, with historical wells
reporting abundant oil shows and interpreted oil saturations from electric log
data.

Recent Pantheon wells - Alkaid-1, Talitha-A and Theta West-1 - have flowed 35
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.

Pantheon drilled the Talitha-A well, which is located just 2.8 miles north of
the Project Icewine permit boundary, in Q1 2021. The well was suspended
following a production test of the Kuparuk, with Pantheon announcing its
intention to return to test additional targets, namely the BFF, the SFS and
the SMD, during the 2022 drilling season. Earlier this year, Pantheon
re-entered the Talitha-A well and individually flow-tested the BFF target and
the SFS target, which resulted in the sustained recovery of light oil over a
three-day period from each test. All targets are interpreted by the Company,
and independently, to extend into the Project Icewine acreage.

The results of Pantheon's Talitha-A well, combined with its earlier Alkaid-1
(2019) well, have been considered as part of a re-evaluation of 88 Energy's
Icewine-1 well data. Subsequent and independent comparisons of the zone that
was tested and flowed light oil in Alkaid-1 at "80-100 BOPD light oil" (see
Pantheon release of 25 March 2019) against the Icewine-1 well, have revealed
the porosity and resistivity of a similar 110 ft net section in Icewine-1 well
to be higher.  Higher porosity is indicative of better reservoir quality and
higher resistivity is an indicator that greater amounts of hydrocarbons are
present. Given the favourable petrophysical comparison between Icewine-1 and
Alkaid-1, the Company is optimistic that a production test in the Eastern
Icewine acreage could yield a similar or better result than seen during the
testing of Alkaid-1.

Following the successful testing at Talitha-A, Pantheon moved to test the BFF
fan prospect in their Theta West well, reporting "light 35.5-38.5 degree API
gravity oil at rates that averaged over 57 barrels of oil per day" (see
Pantheon release of 24 March 2022). All reported Pantheon tests to date have
been performed on vertical, stimulated wells.

Following the recent results from the Talitha-A and Theta West-1 wells drilled
by Pantheon, 88 Energy has a positive view of the potential of the SMD, SFS
and BFF play fairways that extend onto the Icewine acreage. In particular, the
Company notes the relative consistency of  results over a large area to the
north, suggestive of reasonably homogeneous reservoirs that potentially extend
into 88 Energy's acreage. The Company also notes Pantheon's planned
development wells are expected to produce at rates of over 1,000 BOPD per well
via long horizontal wells with multi-stage hydraulic fracturing technology
(see Pantheon release of 24 January 2022).

88 Energy is in the process of finalising mapping of the SFS and BFF play
fairways onto the Icewine acreage and expects this work to be completed in
April 2022. Once complete, the combined mapping of the three prospects (SMD,
SFS and BFF) is set to form the basis of an updated resource estimate at
Project Icewine, scheduled for completion in Q2 2022.

88 Energy advises that it is in ongoing discussions in relation to a potential
farm-out of the Project Icewine acreage. Due diligence activities and
negotiations are advancing with regard to the potential farm-in by a third
party and the related work program terms and structure.  Execution and
completion of the potential transaction is not guaranteed and remains subject
to all final documentation being agreed and due diligence completed.  There
is no guarantee that negotiations will lead to a binding agreement or a
completed transaction.

The below graphics can be viewed in the pdf version of this announcement,
which is available on the Company's website www.88energy.com
(http://www.88energy.com) :

 

·   Figure 1: Preliminary third-party mapping of SMD indicates extension of
play fairway onto Project Icewine

·   Figure 2: Shelf Margin Delta Sequence Correlation Panel

·   Figure 3: Map of Project Icewine and Near Lease Discoveries

 

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  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)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCSSWEFWEESEDL