REG - 88 Energy Limited - PROJECT PHOENIX – BFF CONTINGENT RESOURCE ESTIMATE

88 EnergyAnnouncement

30/10/2023 07:15

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RNS Number : 6852R  88 Energy Limited  30 October 2023

This announcement contains inside information

 

88 Energy Limited

PROJECT PHOENIX - BFF CONTINGENT RESOURCE ESTIMATE

Highlights

·   Following Pantheon Resources Plc declaring a significant contingent
resource for the Lower BFF, 88 Energy has appointed independent consultants
NSAI to assess the BFF reservoir at Project Phoenix.

·   The Company anticipates that NSAI will be able to complete the maiden
contingent resource estimate in November 2023 for the BFF which may lead
to Hickory-1 being confirmed as a discovery.

·   Certification of a contingent resource for the BFF reservoir would be a
significant milestone for the Company, allowing the focus of Hickory-1 testing
to shift to the shallower reservoirs.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to announce that it has recently engaged the independent resource
certifier, Netherland, Sewell & Associates, Inc (NSAI) following Pantheon
Resources Plc declaring a significant contingent resource for the Lower Basin
Floor Fan.

 

The Basin Floor Fan (BFF) reservoir was the deepest of the multiple
hydrocarbon-bearing pay zones intersected during the drilling and logging of
the Hickory-1 exploration well. NSAI will assess the BFF reservoir at Project
Phoenix for a maiden contingent resource estimate based on Hickory-1 results
and nearby offset well results, which may lead to the Hickory-1 being
confirmed as a discovery.

 

Figure 1 shows the globally recognised resource classification framework
published by the Society of Petroleum Engineers and known as the Petroleum
Resources Management System (PRMS 2018). The maturation of a project from
exploration to development and finally production requires the project to also
upgrade its resource classification from Prospective Resources to Contingent
Resources and finally to Reserves. It is the Company's strong intention to
make this progression for as many reservoirs as possible, with the first
milestone expected to be achieved imminently for the BFF, followed by flow
testing of multiple reservoirs at the Hickory-1 location. If successful, this
data will then be integrated into a subsequent Resource Assessment later in
2024 with the intention of obtaining the Contingent Resource classification
for all tested reservoirs.

 

To assist in this matter NSAI has commenced reviewing and integrating existing
data of all reservoirs, specifically:

 

·     Existing Prospective Resource Assessment carried out independently
by Lee Keeling and Associates in 2022, prior to drilling of Hickory-1;

·     Hickory-1 drilling and logging results;

·     Any relevant data beyond 88 Energy's acreage, such as results from
wells in the adjacent acreage that could be considered analogous to Project
Phoenix;

·     88 Energy and publicly available seismic data

 

A particular focus for both the Company and NSAI has been to assess all
available data from the BFF reservoir. Based on initial assessment, it has
been concluded that a Contingent Resource classification is likely to be
certified by NSAI imminently, ahead of flow testing at Hickory-1, based on the
following:

 

·     Two successful flow tests achieved from two attempts in the
adjacent acreage at Talitha-A and Theta West-1;

·     High quality seismic data demonstrates BFF reservoir continuity
from both Talitha-A and Theta West-1 to Hickory-1 and extension south to
Icewine-1;

·     Log data and petrophysical interpretations are similar across all
four wells.

 

Contingent Resource estimates for the Shelf-Margin Delta (SMD-B) and Slope Fan
System (SFS) reservoirs are targeted to be obtained post the successful flow
testing of these shallower zones at Hickory-1, due to the quantum of data
available at this time. It is important to note however, the SMD-B has one
successful flow test that was recently achieved at Alkaid-2 and the SFS has
achieved three successful flow tests to date (Alkaid-1, Talitha-A and
Alkaid-2).

 

 

 

Figure 1: Resources Classification Framework and Sub-Classes based on Project
Maturity

 

 

 

 

 

 

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

 

 

 

Fivemark Partners, Investor and Media
Relations

Michael Vaughan
 
              Tel: +61 422 602 720

 

EurozHartleys Ltd, Dale
Bryan
Tel: + 61 8 9268 2829

 

Cavendish Securities
Plc                                                           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 40 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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