88 Energy Limited - Operations Update
Project Icewine - Icewine 3D
The Icewine 3D seismic survey, approximately 450 km2 in area and covering several large leads identified on 2D seismic, was completed on the 28th March - on schedule and within budget. Infield quality control, overseen by head office, has ensured that the data acquired is as clean as possible to enable fast track processing. Processing of shipments of data from the initial areas of the acquisition has commenced and early products, namely post stack migration, will be available in
Subsequently, velocity analysis and regularization will occur, providing the isotropic Kirchoff pre stack time migration product. This product will be used to further analyse and confirm the highly encouraging amplitude vs offset (AVO) anomalies identified on the 2D seismic. These AVO responses are often associated with the presence of hydrocarbons and, significantly, have already been identified at horizons where both oil shows and good quality reservoir is observed in regional well data.
As background, the 3D acquisition was designed to mature conventional prospectivity previously reported, including several leads with AVO support, in the western portion of the Project Icewine leases.
A diagram showing Icewine 3D completed: Covering Primary Conventional Targets in Western Margin can be viewed in the ASX version of this announcement, which can be accessed via the link below:
The Company's preparations for the launch of its planned farm-out, ahead of 2019 drilling operations, is well underway. The formal process is expected to commence mid-2018, based on the early products from the 3D seismic survey. The Company remains confident of achieving a successful outcome to the farm-out process prior to year end for the following reasons (based on the assumption that the 3D seismic is confirmatory of the prospectivity already identified on our 2D database):
· High quality database comprising both modern reconnaissance 2D and focused 3D seismic
· Excellent oil shows, including live oil to surface, in nearby wells at horizons where good quality reservoir is also evident - coinciding with large mapped leads within the regionally proven Brookian play type
· Multi-year permits are already secured for two well locations within the 3D acquisition area, allowing for near term (1H CY2019) drilling
· Excellent operating capability, as evidenced by two recently drilled and operated wells, by the Company - both within budget and on schedule
· Flexibility to cede operational control, to a suitably operationally experienced partner
· Large discoveries in Brookian play type in nearby acreage to the north
· Recent industry transactional activity on neighbouring acreage, valuing discovered resources at >
Project Icewine - Icewine#2 Flow Test
Planning is being finalised for the re-opening of the Icewine#2 well, which remains on schedule for April/
In house evaluation is ongoing in relation to the recently acquired (subject to formal award) Yukon Gold leases, which contain an historic oil discovery. The Company is pleased to advise it awarded a seismic contract to SAExploration to acquire ~96km2 of 3D seismic, predominantly over the Yukon Gold leases. The seismic data will allow for assessment of the volumetric potential of the discovery as well as to identify any additional prospectivity over the broader lease position. Acquisition commenced on the 24th March and was completed on the 1st April.
The 3D survey was fast tracked to opportunistically benefit from an available seismic crew in the latter part of the 2018 acquisition season. Final processed products are anticipated in Q4 2018.
A diagram showing the Yukon Gold Leases can be viewed in the ASX version of this announcememt at the link above.
The strong support for the recent option exercise has meant we have been able to accelerate assessment of the Yukon Gold leases, with the costs of the planned 3D acquisition being less than half of the monies receipted from the option exercise process.
The remainder of 2018 promises to be pivotal for the Company and its shareholders, with near-term activity related to the Icewine#2 flow test, expected prior to mid-year, results from two 3D seismic acquisitions and one or more farm-out transactions targeted for the second half of the year."
Pursuant to the requirements of the
Media and Investor Relations:
Email: [email protected]
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
Project Icewine Overview
The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5% royalty.
The HRZ liquids-rich resource play has been successfully evaluated based on core obtained in the recently completed (
Significant conventional prospectivity has also been identified on recently acquired 2D seismic across the project acreage.
A diagram showing the Project Icewine Acreage be can be viewed in the ASX version of this announcememt at the link above.
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.
Exploration incentives provided by the State of Alaska with up to 35% of net operating loss refundable in cash were concluded for all expenditure post
The primary objective is an untested, unconventional liquids-rich shale play in a prolific source rock, the HRZ shale (Brookian Sequence), that co-sourced the largest oil field in North America; the giant
Recently acquired 2D seismic has identified large conventional leads at Project Icewine within the same Brookian petroleum system and shallow to the HRZ shale, including potential high porosity channel and turbiditic sands associated with slope apron and deepwater fan plays. The Brookian conventional play is proven on the North Slope; the USGS (2013) estimated the remaining oil potential to be 2.1 billion barrels within the Brookian sequence. Two recent discoveries in the Brookian have already exceeded these estimates, with Armstrong/Repsol discovering 1.4 billion barrels in 2015 and Caelus announcing a 2.5 billion barrel discovery in 2016. Additional conventional potential exists in the Brookian delta topset play, deeper Kuparuk sands and the Ivishak Formation.
A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by 88 Energy to evaluate the unconventional resource potential of Project Icewine in
About 88 Energy: 88 Energy has a 63% working interest and operatorship in ~342,000 acres onshore the prolific North Slope of Alaska ("Project Icewine"). Gross contiguous acreage position for the Joint Venture is ~475,000 acres (88E 301,000 net acres). The North Slope is the host to the 15 billion barrel
This information is provided by RNS
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