88 Energy Limited - Operations Update
· Production testing at Icewine#2 scheduled to recommence 11th
o Site clearance works commenced at Franklin Bluffs pad
o Final preparations for mobilisation of test equipment underway
· 3D seismic processing on schedule
Project Icewine - Icewine#2 Production Testing
Site works have commenced to clear snow and ice from the Franklin Bluffs gravel pad to enable access to the Icewine#2 wellhead. Pressure gauges will then be retrieved from downhole and data anaylsed to determine if any reservoir degradation is observed, which may require remedial action such as reperforation of the target intervals. Concurrently, test equipment including separators, tanks and nitrogen lift units will be mobilized to site ahead of the scheduled commencement of flow testing on the 11th
The flow testing program has been designed to utilize nitrogen lift to assist the removal of up to an additional 4,000 barrels of fluid from the HRZ reservoir. It is anticipated that this will enable the hydrocarbons in the reservoir to flow naturally to surface at a representative rate. Based on modelling of the reservoir pressure and fracture conductivity, this is estimated to take 10-14 days. The well will then continue to be flowed back to ascertain drawdown pressure and decline rate.
3D Seismic Processing
Processing of recently acquired 3D seismic at both Project Icewine and the Yukon Gold leases is progressing as per schedule.
Early products from the Project Icewine 3D survey are expected to be received mid-year prior to commencement of a formal farm-out process related to the conventional prospectivity already identified over the Western Margin leases at the project.
The Yukon Gold 3D data is expected in Q4 2018 and will assist in assessment of the potential of the Yukon Gold oil discovery as well as delineation of any additional potential on the leases.
Regular updates will be provided as works progress, as appropriate."
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Neil McDonald/Derrick Lee
Pursuant to the requirements of the
Project Icewine Overview
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.
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 63% working interest and operatorship in ~342,000 acres onshore the prolific North Slope of Alaska ("Project Icewine"). Gross contiguous acreage position for the Joint Venture is ~475,000 acres (88E 301,000 net acres). The North Slope is the host to the 15 billion barrel
This information is provided by RNS, the news service of the
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