Maiden prospective resource estimate adjacent $1.7B neighbour.

This morning, our oil and gas exploration Investment 88 Energy (ASX: 88E) put out a maiden prospective resource estimate for its Icewine East acreage - adjacent London listed Pantheon Resources (capped at $1.7B).

88E’s maiden prospective resource estimate came in at 1.03 billion barrels on a gross mean unrisked basis.

88E has a ~75% working interest in the project meaning its net unrisked prospective resource is ~647 million barrels of oil.

The prospective resource estimate comes a few months after 88E acquired 3D Seismic data in its acreage, enhancing its understanding of the project area.

Importantly the prospective resource estimate has been mapped across the same reservoirs where London listed Pantheon resources (capped at $1.7 billion) drilled its Alkaid-1, Talitha-A and Theta West-1 and confirmed reservoir deliverability of light oils.

Also worth noting is that this part of 88E’s Icewine acreage is independent of the Icewine west acreage where 88E previously drilled the Charlie-1 well.

We covered Pantheon's results in a previous 88E note which you can read here: Neighbour Pantheon’s work to date all adds value to 88E’s ground.

With 88E’s neighbour Pantheon Resources currently preparing to drill the vertical section of its Alkaid #2 well to obtain a flow test over its project area, we think 88E’s prospective resource estimate comes at the perfect time.

If its neighbour is able to prove a commercially viable flow rate, then we think the attention will start to turn to 88E, whose project sits over the same reservoirs.