88E exploring for large-scale, multi-billion barrel oil resources
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88 Energy Limited (ASX:88E) this morning provided an update related to ongoing work on its conventional prospect portfolio at Project Icewine, which is located on the North Slope, onshore Alaska, and has a total conventional net mean prospective oil resource of 2,445 MMBO.
Yukon leases maiden conventional resource: net mean prospective oil resource – 90 MMBO (100% 88E)
The Yukon 3D seismic, acquired by 88E in the first quarter of 2018, has been fast track processed, with mapping undertaken to assess the maiden prospective resource associated with three sand bodies identified on the leases.
The Cascade lead, has been upgraded to prospect, a Brookian Turbidite Fan Play, while additional prospectivity has been mapped within Staines Tongue Topset Play.
The Cascade Prospect is the largest of the sand bodies, containing ~92% of the preliminary mapped resource on the Yukon Leases. The Cascade prospect is interpreted to have been intersected in a downdip location by the vintage Yukon Gold-1 oil discovery well.
Yukon Gold-1 was drilled in 1993 and discovered two oil saturated sands in the Canning Formation with porosities exceeding 18%. Up until the 2016 commissioning of infrastructure at the nearby Point Thomson gas/condensate/oil field, an accumulation of this size would have been considered stranded. Internal modelling suggests that break-even development price is now less than US$40/bbl.
Next steps will involve generation of an inversion 3D volume to further delineate and de-risk current mapping. An update is planned for the next quarter.
Project Icewine conventional – 2,896 MMBO (88E: 2,211 MMBO net mean prospective resource)
88E recently updated the conventional prospective resource at Project Icewine based on the newly processed 3D inversion dataset.
This data highlighted features, such as feeder channels, associated with the prospects, providing further confidence in the mapping and the geological model. Additionally, further analysis has provided positive insights into the prospects / discoveries identified in the shallow Schrader Bluffs Formation, as well as the deeper Torok Formation. These insights are particularly encouraging by comparison to recent successful production testing in the Nanushuk Formation discoveries made over the last four years on the North Slope.
A farm-out process is currently underway, with a deal targeted prior to year-end.
Western Blocks conventional – 400 MMBO (88E: 144 MMBO net mean prospective resource)
88E also has a stake in the Winx-1 well, slated for drilling in the upcoming quarter.
The Western Blocks comprise four leases (totalling 22,711 acres) immediately adjacent to the Horseshoe#1/1A oil discovery well, which forms part of the billion barrel plus Nanushuk Oil Fairway.
The Winx-1 well is on schedule to begin drilling in February 2019, and is targeting a prospect with a gross mean unrisked prospective resource volume of 400MMBO (144MMBO net to 88EP).
Two of the objectives to be tested in the Winx-1 well are within the Nanushuk Formation — on success, these would prove up an extension of the play four miles to the east of the current fairway.
88E now has 2.2 billion barrels net (gross mean prospective resource) at Project Icewine, plus its large unconventional portfolio, which also runs into the billions of barrels of prospective resources.
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