TIDM88E

RNS Number : 8214K

88 Energy Limited

09 May 2022

This announcement contains inside information

88 Energy Limited

Project Icewine - Independent Third-Party Mapping Complete

Highlights

   --    Third-party evaluation of the Icewine East mapping is now complete (75% 88 Energy WI). 

-- All Pantheon reservoir units (SMD, SFS and BFF) independently interpreted to extend onto 88 Energy's Icewine acreage.

-- Pantheon wells - Alkaid-1, Talitha-A and Theta West-1 - have flowed 35 to 40 API oil from multiple Brookian reservoirs. Pantheon testing has confirmed reservoir deliverability of light, sweet oil (see Pantheon releases of 7 and 21 February 2022), which 88 Energy believes is positive for the prospectivity of the adjacent Project Icewine acreage.

-- In-depth petrophysical re-evaluation of Icewine-1 and broader Icewine East acreage has been completed, with the results indicating comparable, or better, reservoir quality in some reservoir units relative to those of Pantheon's tested intervals which flowed oil.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or the Company ) is pleased to report that the third-party (Jordan & Pay) evaluation of the Shelf Margin Delta ( SMD ), Slope Fan Set ( SFS ) and Basin Floor Fan ( BFF ) play fairways on its Project Icewine acreage is now complete. The independent third-party mapping, which utilised available well information from presentations publicly released by neighbouring acreage holder, Pantheon Resources (AIM:PANR, GBP 975M market capitalisation ) ( Pantheon ), plus internal 88E data, shows that all Pantheon reservoir units extend onto the Project Icewine acreage.

An in-depth petrophysical re-evaluation of Icewine-1 and the broader Icewine East area has also been completed by independent petrophysical consultants (Stimulation Petrophysics Consulting, LLC and Snowfall Energy LLC). The consultants focussed on assessing Icewine-1 logs against intervals that flowed oil in Pantheon's acreage to the north. Pleasingly, a comparison of the tested interval in Alkaid-1 against a similar interval in Icewine-1, called the SMD-B reservoir unit, indicated the favourable potential for a flow test of the same zone in the Icewine acreage.

Table 1 contains a summary of the petrophysical data from these intervals. It reveals similar porosity and clay content in Icewine-1 with, importantly, higher oil saturation and productivity estimates in Icewine-1. These studies have confirmed 88 Energy's preliminary analysis as previously announced on 8 April 2022, and accordingly, along with recent mapping efforts will form the basis of an independent volumetric and risking certification, which is expected to be completed in mid-2022.

 
                                Icewine-1   Alkaid-1 
                      ------- 
 Top                    feet      7815        8036 
 Base                   feet      8061        8250 
 Gross Pay              feet       221        215 
 Net Pay                feet       164        192 
 Effective Porosity      %        8.8%        8.8% 
 Clay Content            %         34%        35% 
 Resistivity           ohm.m       7.7        5.1 
 Oil Saturation          %         65%        49% 
 Productivity          mD.ft       8.5        3.0 
--------------------  -------  ----------  --------- 
 

Table 1: Petrophysical comparison of zones of interest in Icewine-1 and Alkaid-1.

Pantheon's wells - Alkaid-1, Talitha-A and Theta West-1 flowed 35 to 40 API oil from multiple Brookian reservoirs. Pantheon's testing has confirmed reservoir deliverability of light, sweet oil (see Pantheon releases of 7 February and 21 February 2022), which 88 Energy believes is positive for the prospectivity of the adjacent Project Icewine acreage. This data is not yet publicly available and as a result only a qualitative comparison of these logs against Icewine-1 logs could be carried out at this time.

Given the favourable petrophysical comparison between Icewine-1 and Alkaid-1, the Company is optimistic that a production test in the Icewine East acreage could potentially yield a similar or better result than seen during the testing of Alkaid-1. The Company also notes Pantheon's plans to drill a horizontal production well in mid-2022 in Alkaid, called Alkaid#2, to prove up the development concept (see Pantheon release of 24 January 2022 and Figure 2 available on the Company's website).

The below graphics can be viewed at the following link http://www.rns-pdf.londonstockexchange.com/rns/8214K_1-2022-5-9.pdf

-- Figure 1: Third-party mapping indicates extension of all PANR prospect play fairways into Project Icewine.

   --    Figure 2: Pantheon plans for a horizontal production well in Alkaid. 
   --    Figure 3: Sweet-spot identification across the SMD-B and SMD-C play fairways. 
   --    Figure 4: Shelf Margin Delta Sequence Correlation Panel. 
   --    Figure 5: Map of Project Icewine and Near Lease Discoveries. 

Media and Investor Relations:

 
 88 Energy Ltd 
  Ashley Gilbert, Managing Director 
 
 Tel: +61 8 9485 0990 
  Email:investor-relations@88energy.com 
 
 Finlay Thomson , Investor Relations      Tel: +44 7976 248471 
 
 Fivemark Partners , Investor and         Tel: +61 410 276 744 
  Media Relations                          Tel: +61 422 602 720 
  Andrew Edge / Michael Vaughan 
 
 EurozHartleys Ltd                        Tel: +61 8 9268 2829 
  Dale Bryan 
 
 Cenkos Securities                        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 35 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.

About Project Icewine

Project Icewine is located on the central North Slope of Alaska and encompasses approximately 195,000 acres. It is situated on-trend to recent discoveries in multiple, newly successful play types in topset and bottom-set sands of the Schrader Bluff and Seabee formations. 88 Energy has a 75% working interest in the Project.

88 Energy has acquired 2D and 3D seismic and drilled three exploration wells in the acreage, including the Charlie-1 discovery well in Q1 CY2020.

 
 
 Prospects          Formation         Low   Best    High       Mean 
                   ----------------  ----  -----  ------  --------- 
                    Seabee / Basin 
 Lima Complex        Floor Fan        214    978   2,804      1,419 
                   ----------------  ----  -----  ------  --------- 
                    Toro / Basin 
 Stellar Fan 1-6     Floor Fan         79    248     722        355 
                   ----------------  ----  -----  ------  --------- 
 TOTAL MEAN PROSPECTIVE OIL RESORCE                        1,774(2) 
                                                          --------- 
 
 
 
              Note: 
               1. Gross mean unrisked prospective resource. 
               2. Please refer to the ASX release dated 10 November 2020 for full details 
               with respect to 
               the Prospective Resource estimate, associated risking. 
               3. 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. 
 

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