08:00 Wed 25 Oct 2017
88 Energy Limited - Project Icewine Lease Award Update
Project Icewine Lease Award Update
Highlights
· Gross acreage position expanded from ~350,000 to ~460,000 acres
o Net acreage position increased from ~260,000 to ~286,000 acres
Project Icewine Lease Award
The Joint Venture was recently awarded certain leases successfully bid on in the 2016 North Slope licensing round. After negotiation and consideration, it was determined to take up 43% of these acres with
The quantum of acres and working interest taken up by each party were determined largely by the following factors:
· Ongoing confidence by the Joint Venture in the potential of the HRZ shale play
· Fine-tuning of the area deemed most prospective for the HRZ shale play
· BEX desire to increase its net acreage position and have right to Operate on certain acres
· Balance for 88E between increasing its already extensive net acreage position and management of current cash position vs planned work program
o Objective to maximise value creation for shareholders whilst minimising dilution
The current lease position is detailed below:
Operator |
88E |
BEX Net Acres |
Total |
88E (Accumulate) |
252,250 |
73,054 |
325,304 |
BEX |
34,339 |
98,454 |
132,793 |
Total |
286,589 |
171,508 |
458,097 |
A pictorial summary of the current lease position is available in the attached pdf.
http://www.rns-pdf.londonstockexchange.com/rns/4425U_-2017-10-24.pdf
Managing Director,
Media and Investor Relations:
Email: admin@88energy.com
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
Pursuant to the requirements of the
Project Icewine Overview
In
The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5% royalty.
The HRZ liquids-rich resource play has been successfully evaluated based on core obtained in the recently completed (
Significant conventional prospectivity has also been identified on recently acquired 2D seismic across the project acreage.
A map of the Project Icewine acreage is available in the attached pdf.
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
Exploration incentives provided by the State of Alaska with up to 35% of net operating loss refundable in cash were concluded for all expenditure post
The primary objective is an untested, unconventional liquids-rich shale play in a prolific source rock, the HRZ shale (Brookian Sequence), that co-sourced the largest oil field in North America; the giant
Recently acquired 2D seismic has identified large conventional leads at Project Icewine within the same Brookian petroleum system and shallow to the HRZ shale, including potential high porosity channel and turbiditic sands associated with slope apron and deepwater fan plays. The Brookian conventional play is proven on the North Slope; the USGS (2013) estimated the remaining oil potential to be 2.1 billion barrels within the Brookian sequence. Two recent discoveries in the Brookian have already exceeded these estimates, with Armstrong/Repsol discovering 1.4 billion barrels in 2015 and Caelus announcing a 2.5 billion barrel discovery in 2016. Additional conventional potential exists in the Brookian delta topset play, deeper Kuparuk sands and the Ivishak Formation.
A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by 88 Energy to evaluate the unconventional resource potential of Project Icewine in
About 88 Energy: 88 Energy has a 77.5% working interest and operatorship in ~325,000 acres onshore the prolific North Slope of Alaska ("Project Icewine"). Gross contiguous acreage position for the Joint Venture is 458,097 acres (88E 286,589 net acres). The North Slope is the host to the 15 billion barrel
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