88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has now completed its maiden resource estimate for the Project Leonis area, in Alaska, with some 381 million barrels of recoverable ‘net mean Prospective Resources’ estimated.
The range of estimates was pitched between 167 million (low) to 671 million (high) barrels.
A key target is to be tested in the future with the proposed Tiri-1 exploration well, which is presently in the planning phase.
"Following the recent success at Project Phoenix we are pleased to announce the completion of a maiden Prospective Resource estimate at Project Leonis,” managing director Ashley Gilbert said in a statement.
“Being strategically located on the North Slope of Alaska, with TAPS running through the acreage and Deadhorse just six miles to the North, Project Leonis represents a significant resource and development opportunity.
“We have commenced permitting and planning processes for the Tiri-1 exploration well ahead of a future potential drilling event, to target the USB zone.”
Gilbert noted that the timing of future drilling would depend upon 88 Energy securing a farm-out transaction, with the company seeking to trade out some of its 100% interest in the project in return for project funding.
He added: “We believe there is significant potential to secure a large proportionate carry on any future well.
“However, despite there being multiple parties assessing the farm-out opportunity, there is much work to be done and no guarantees a partner will be secured on our desired terms.
“In terms of our Alaskan acreage position, we are now fully focused on Project Leonis and Project Phoenix, where we expect meaningful advancement with key milestones set to be achieved in the coming 6 to 12-month period."