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88 Energy Ltd

88 Energy Ltd unveils ‘billion barrel’ estimates for Alaska shale project

An independent consultant sees 1.4bn barrels of oil equivalent and sees a 'productive area' amounting to 42% of the Project Icewine area, meanwhile the internal view sees 3.6bn barrels across a larger area of Alaska’s North Slope.

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D&M upgraded Icewine’s ‘geologic chance of success’ to 60% from 40%.

88 Energy ltd (LON:88E) has unveiled a new independent resource estimate which sees some 1.4bn barrels of oil equivalent in the HRZ shale that was encountered in the first Project Icewine well.

Independent consultant, DeGolyer & MacNaughton (D&M), has now also upgraded its view on the ‘probability of geologic chance of success’ to 60%, from 40%.

Dave Wall, 88 Energy’s chief executive, said: "The large upgrade to the resource potential at Project Icewine highlights the unique leverage that a project with this possible magnitude provides to investors.

“We look forward to providing additional information related to the project as we continue to complete the current 2D seismic acquisition and mature plans for the Icewine#2H well."

Icewine’s ‘productive acres’ are estimated by G&M to span 42% of the project’s total area.

Internally, meanwhile, the company’s joint venture estimates some 3.6bn barrels across 70% of the Project Icewine area.

The company highlighted that the assumptions used by D&M are largely consistent with the internal view of the project, and the main difference relates to the views of how much of acreage would prove productive in the ‘success case’.

It added that the internal view is based on experience and past expertise within the joint venture relating to the development of the Eagle Ford shale, as well as confirmation of the pre-drill thermal maturity model by the Icewine#1 exploration well.

“D&M's assumption is largely driven by statistical analysis over a larger selection of global shale plays at a similar stage of life cycle,” the company explained.

Quick facts: 88 Energy Ltd

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Market: AIM
Market Cap: £58.57 m
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