88E: new North Slope oil leases awarded
Our oil exploration Investment 88 Energy (ASX:88E) today confirmed that it has been awarded additional acreage on the Alaskan North Slope.
As we reported at the time, last November 88E was the highest bidder on 10 leases covering approximately 25,600 contiguous acres immediately south of Prudhoe Bay - the USA’s biggest-ever oil discovery.
The Alaskan Department of Natural Resources (DNR), Oil and Gas Division, has now formally issued the leases, “Project Leonis”, to 88E.
Importantly, the Project Leonis lease area is fully covered by an existing 3D data suite and contains a historical exploration well (Hemi Springs Unit #3 drilled by ARCO in 1985).
This will allow 88E to undertake detailed, informed analysis to properly understand the exploration opportunity. The company intends to utilise modern analysis techniques to further advance the project.
Historical drilling targeted the deep reservoirs here – the main producing intervals in the giant northern fields at that time. Nearby oil fields (Orion, Polaris, West Sak and Milne Point) readily demonstrate successful development of the reservoir.
Further analysis will determine the future potential of the acreage and define a possible exploration program and timeline for the Project.
Here is an overview of the activity to date at the lease and 88E’s planned work:
This new project is close to infrastructure and services at Prudhoe Bay and Deadhorse, as well as a historical well that indicated oil shows and calculated pay in the zone of interest.
Project Phoenix
In regards to 88E’s Project Phoenix, as seen on the map above south of the new lease area, the company recently completed drilling and wireline logging of the Hickory-1 well.
Just over a week ago, the company reported net pay numbers that are larger than the multi-billion dollar Pikka and Willow discoveries on the North Slope with porosity levels that are approaching similar levels.
For more on that news see our latest Note: 88E delivers 450 feet (~137m) of net pay - now we wait for the flow test…
Looking ahead, Hickory-1 is scheduled for flow testing as early as possible in the 2023/2024 Alaskan winter season. This will confirm whether the reservoirs can flow oil to the surface at commercial rates.
