88 Energy Ltd (LON:88E, ASX:88E) has updated investors on its conventional oil exploration assets in Alaska, where it has amassed a prospect inventory representing potential resources of 2.4bn barrels of oil.
The prospects within the Project Icewine acreage count for the largest portion of the estimates, with some 2.1bn barrels ‘seen’ across seventeen prospects in three play fairways.
It is arguably among the most advanced, with a farm-out transaction anticipated before the end of this year.
Such a deal would, ideally, allow the explorer to advance the portfolio to drilling so that some of the theoretical resources can be realised as actual discoveries.
The company, in Wednesday’s statement, noted that its most recent analysis (which followed the new 3D inversion data) has “provided positive insights” regarding the shallow Schrader Bluffs Formation and 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,” 88 Energy said.
De-risking process continues for Yukon Leases
Elsewhere, in the Yukon Leases project area, the company continues to progress pre-drill technical work following on from the 3D seismic data capture earlier this year. It said that the next steps include the completion of 3D inversion work aimed at the further delineation and de-risking of potential drill-targets.
At present, the Cascade prospect is the main target at Yukon Leases. It accounts for around 92% of all the resources estimated in the area (90mln barrels in aggregate).
Cascade is seen down-dip of the ‘vintage’ Yukon Gold-1 oil discovery well - drilled in 1993, finding two oil saturated sands. Previously, this ‘discovery’ was considered stranded until the commissioning of new infrastructure back in 2016, though it’s now modelled that such an asset could be viable with a break-even oil price of about $40 per barrel.
88 Energy expects to have the findings of the 3D inversion for an update in the first quarter of 2019.
Winx well awaited
Drilling is anticipated in early 2019 at the Western Blocks asset, where the Winx-1 well is targeting a substantial 400mln barrels exploration target.
Here, 88 Energy and its partners aim to extend the multi-billion barrel Nanushuk Oil Fairway.
Winx will be located immediately adjacent to the Horseshoe oil discovery well, drilled by Repsol, and, a successful result would take the oil play an additional 4 miles extended to the east.