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88 Energy (ASX:88E) riding high on Project Icewine update 

Image Source: 88E website

Highlights

  • 88 Energy is advancing well with the assessment of the SMD, SFS and BFF play fairways onto its Project Icewine acreage.
  • The company remains optimistic about the potential of Icewine acreage, given Pantheon’s recent success in the region.
  • 88E is in discussions and negotiations with potential parties for a possible farm-in for Project Icewine.

88 Energy (ASX:88E) is forging ahead with exciting endeavours across its Icewine project located on the central North Slope of Alaska. The company is progressing as per schedule with the evaluation of the Shelf Margin Delta (SMD), Slope Fan System (SFS) and Basin Floor Fan (BFF) play fairways onto its Project Icewine acreage. The Company holds a 75% working interest in the Icewine project.

Recently, Pantheon Resources (AIM:PANR), a neighbouring acreage holder, released presentations with well information. 88E used this information along with its internal data, comprising Icewine-1 and Icewine-2 well logs and existing 2D seismic, for preliminary independent third-party mapping, which suggests the extension of all play fairways into the Project Icewine lease holding.

Extension of play fairway onto Project Icewine (Source: 88E Announcement 08/04/22)

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Extension of play fairway onto Project Icewine

Recently, some Pantheon wells have flowed 35 to 40⁰ API oil from multiple Brookian reservoirs and Pantheon’s testing has validated the reservoir deliverability of light, sweet oil. 88E believes that this is encouraging for the prospectivity of the adjacent Project Icewine acreage.

Talitha-A well, located 2.8 miles north of the Project Icewine permit boundary, witnessed drilling by Pantheon in the first quarter of 2021. After a production test of the Kuparuk, the well was suspended as Pantheon announced its intention to return to test targets, the BFF, the SFS and the SMD, during the 2022 drilling season.

Earlier in 2022, Pantheon re-entered the Talitha-A well and individually flow-tested the BFF and SFS targets, resulting in the sustained recovery of light oil over a three-day period from every single test. All targets have been interpreted by 88E and independently to extend into the Project Icewine acreage.

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Indications of greater amounts of hydrocarbons for 88E

As part of a re-evaluation of 88E’s Icewine-1 well data, the Company has considered the results of Pantheon’s Talitha-A well, along with its previous Alkaid-1 (2019) well. Later on, independent comparisons of the zone tested and flowed light oil in Alkaid-1 against the Icewine-1 well have delivered greater porosity and resistivity of a similar 110 ft net section in the Icewine-1 well.

Shelf Margin Delta Sequence Correlation Panel (Source: 88E Announcement 08/04/22)

Greater porosity suggests better reservoir quality and higher resistivity indicates the presence of greater amounts of hydrocarbons.

Given this positive petrophysical comparison, 88E remains confident that a production test in the Eastern Icewine acreage could deliver a similar or better result than that seen during the testing of Alkaid-1.

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88E’s optimism surrounding Icewine

Considering recent results from Pantheon’s drilling of Talitha-A and Theta West-1 wells, 88E remains optimistic about the potential of the SMD, SFS, and BFF play fairways extending into the Icewine acreage.

Specifically, 88E has noted the relative consistency of results across a large area to the north, which suggests reasonably homogeneous reservoirs possibly extending into 88E’s acreage. Moreover, the company has noted Pantheon’s anticipation of producing at rates of more than 1,000 BOPD per well through the planned development of wells.

Source: 88E Announcement 08/04/22

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Developments at Icewine Project acreage

88E is in the last stage of concluding the mapping of the SFS and BFF play fairways onto the Icewine acreage. The company expects to wrap up this work in April 2022.

Upon completion, the company believes that the mapping of the three prospects together (SMD, SFS and BFF) would form the basis of an updated resource estimate at Project Icewine, which is planned to complete in Q2 2022.

Meanwhile, the company is in discussions regarding a possible farm-out of the Project Icewine acreage, with due diligence activities and negotiations currently advancing.   

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88E shares were trading at AU$0.016 midday on 12 April 2022, up more than 6% from the last closing price.


 


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