88 Energy Details 50% Resource Upgrade for Project Phoenix

2 min read | September 18, 2024 12:34 AM PDT | By Team Kalkine Media

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88 Energy Details 50% Resource Upgrade for Project Phoenix — Image source: Shutterstock

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88 Energy Ltd (LSE:88E) has announced a substantial update regarding the contingent resources at Project Phoenix in Alaska, which is now estimated to contain approximately 378 million barrels of gross 2C contingent resources. This revised estimate, provided by independent consultant ERCE, reflects an increase of over 50% in the contingent resources within the multi-reservoir project’s SMD-B and SFS zones, adding 128 million barrels to the overall total.

The updated figures include 115 million barrels of gross recoverable liquids, encompassing oil and natural gas liquids, as well as 68 billion cubic feet of gas. This adjustment translates to an additional 73 million barrels and 43 billion cubic feet net to 88 Energy. ERCE has also identified significant upside potential in the project’s Kuparuk, SMD-A, and C reservoirs, validating both the project and the company’s strategic plans for Phoenix, which is ideally located adjacent to the Trans-Alaskan Pipeline System (TAPS) and the Dalton Highway.

Ashley Gilbert, managing director of 88 Energy, commented on the announcement, stating, “This additional contingent resource estimate reaffirms the substantial potential of Project Phoenix, with four independent reservoirs now confirmed as discoveries.” He highlighted that the confirmation of a multi-hundred-million-barrel discovered oil and natural gas liquids resource represents a major milestone for the company and its stakeholders.

Looking ahead, Gilbert noted that the focus will be on planning an extended horizontal flow test of the SMD reservoir, utilizing the existing infrastructure at Franklin Bluffs gravel pad. Additionally, discussions are underway with joint venture partner Burgundy Exploration regarding the next phase of the project, which may involve the partner covering 88 Energy’s share of the 2025/26 work program in exchange for a larger stake in Phoenix.

Furthermore, 88 Energy plans to initiate a formal farm-out process for Phoenix in the fourth quarter to ensure adequate funding for the next phase of development. Currently, the AIM-quoted exploration firm holds a 74.3% ownership stake in Phoenix. The project is one of two discovery areas being advanced by 88 Energy on Alaska’s North Slope, alongside Leonis, which is fully owned by the company and also contains significant resources.

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