17.8 billion barrels of oil estimated to the north of 88E’s 2023

Overnight we came across news from Pantheon Resources (capped at $1.19BN) - neighbour to our oil and gas exploration Investment 88 Energy (ASX: 88E) in Alaska, USA.

Pantheon’s announcement was with respect to a detailed reservoir modelling exercise the company got done by the world's largest oil service company, Schlumberger.

The modelling was on four distinct oil reservoirs inside Pantheon’s acreage - importantly for 88E it includes reservoirs 88E will be drilling with the Hickory-1 well in 2023.

Below is an image showing where 88E plans to drill overlaid on the different reservoir units.

The major takeaway from the report was that the net oil in place estimated independently was for ~17.8 billion barrels of oil across Pantheon’s ground.

We think this puts this part of Alaska on the map for other oil and majors who are currently watching to see what comes from Pantheon Resources Alkaid #2 horizontal well.

If Pantheon is able to show a strong flow rate from the well and then commercialise its acreage, then we think the look-through valuation for 88E’s project could increase significantly.

Hopefully, this news comes out before 88E drills its Hickory-1 well which it now expects to start drilling in late February/early March 2023.

With its Hickory-1 well 88E will be chasing a 647 million barrel unrisked prospective resource (net to 88E).

We are Invested in 88E to see it make a giant oil and gas discovery and re-rate to a market cap in line with companies like Pantheon Resources in the billions of $.