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88 Energy now sees 1.5bn barrels of conventional oil resources in Alaska

Published: 07:33 13 Jan 2017 GMT

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Preparations are on track for the 88 Energy's next well, slated for late Q1

88 Energy Limited (LON:88E, ASX:88E) told investors it has completed its assessment of Project Icewine’s conventional oil potential and it now sees almost 1.5bn barrels of resources across its inventory on Alaska’s North Slope.

Completing its review 88 Energy estimated a further 710mln barrels of prospective resources (550mln net to 88 Energy), which when added to the group’s prior estimates takes the tally to 1.47bn barrels (1.14bn net).

The resource assessment is based on 2D seismic data which has established a significant inventory of exploration leads (fifteen have been quantified altogether).

Dave Wall, 88 Energy managing director, said: “The results from the 2D seismic interpretation continue to exceed our expectations for the conventional potential across Project Icewine.”

88 Energy continues to focus on Icewine’s unconventional resources with the exploration firm also confirming this morning that it is on track to start later in the current quarter.

The upcoming well aims to follow up Icewine-1 which unearthed the HRZ shale discovery, presently estimated to have 1.4 to 3.6bn barrels of oil resources.

Plans for Icewine-2 were approved by the Alaska Department of Natural Resources in late December. That was the penultimate approval required before drilling can begin. The last item is the permit to drill, which 88 Energy says is typically submitted post the approval of all other permits, in the lead up to final drilling preparations.

The company doesn’t expect any issues and it believes it will secure the permit ahead of its scheduled spud date, pencilled in for late in the first quarter of 2017.

“Whilst the conventional prospective resource is very large, it is eclipsed by the potential of the HRZ, especially given the recently expanded acreage position,” Wall said.

“Additionally, the HRZ has been de-risked via analysis of the results from Icewine-1 and remains the company's primary objective.

“Preparations for the drilling of Icewine-2, which will test the production potential of the HRZ, remain on track and we look forward to providing further news on this front over the coming months, in the lead up to spud."

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