REG - 88 Energy Limited - Project Icewine Update

88 EnergyAnnouncement

04/03/2022 07:00

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RNS Number : 5553D  88 Energy Limited  04 March 2022

This announcement contains inside information

4 March 2022

88 Energy Limited

Project Icewine Update

Highlights

·   Light oil recovered at Talitha-A, 2.8 miles north of 88E's Project
Icewine acreage.

·   Preliminary mapping shows highly correlatable reservoir sequences
between Talitha and Icewine.

·   Independent prospective resource update for Icewine planned for
completion in H1 CY2022.

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ("88 Energy" or the "Company")
notes that light oil was recovered during two separate production tests at
Pantheon Resources' (AIM:PANR) ("Pantheon") Talitha-A well (as announced by
Pantheon on 7 and 21 February 2022).

Pantheon drilled the Talitha-A well, which is located just 2.8 miles north of
the Project Icewine (88E 75% WI) permit boundary, in Q1 CY2021. The well was
suspended following a production test of the Kuparuk, with Pantheon announcing
its intention to return to test additional targets, namely the Basin Floor Fan
(BFF), the Slope Fan System (SFS) and the Shelf Margin Deltaic (SMD), during
the CY2022 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 to extend into 88
Energy's Project Icewine acreage.

The Seabee Formation, of which Pantheon's BFF is a member, is the same
formation that host's 88 Energy's Lima complex. The Lima complex was a
secondary target in the Charlie-1 discovery well drilled at Project Icewine in
Q1 CY2020.

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 sequence
that was tested and flowed light oil in Alkaid-1 against its equivalent in the
Icewine-1 well have revealed the porosity and resistivity of the Icewine-1
well to be significantly. 88 Energy notes that just a small 6 ft zone in
Alkaid-1 tested at "80-100 BOPD of 40° API gravity oil" from an "estimated
240 ft of net pay" in Alkaid-1 (as announced by Pantheon on 25 March 2019).

Following the results from Talitha-A in 2021 and further recent testing
results by Pantheon in 2022, 88 Energy will incorporate these results into an
independent prospective resource report for Project Icewine focusing on the
eastern leases in the first half of 2022.

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

 

·   Map showing Pantheon's Talitha-A well.

·   Image showing the seismic cross section from Pantheon's acreage in the
north through 88 Energy's Project Icewine.

·   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 conducted 2D and 3D seismic acquisitions and drilled three
exploration wells in the acreage, including the Charlie-1 discovery well in Q1
CY2020.

 

 PROSPECTIVE RESOURCE (MMBO, UNRISKED)
 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.     Talitha-A well was drilled and tested by Pantheon Resources LLC in
Q1 2021

2.     Please refer to the announcement 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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