88 Energy Plc (LON:88E) has outlined the significant conventional oil potential present in its Project Icewine acreage in Alaska’s North Slope.
Better than expected new seismic data has allowed the company to identify some 758mln barrels of prospective resources across its ‘top 5’ exploration leads.
It highlighted one in particular, the Alpha lead, which is estimated at 118mln barrels and is located in close proximity to both transport infrastructure and the Trans Alaskan Pipeline. The Bravo lead, meanwhile, is the largest to be identified so far, estimated at 273mln barrels.
88 Energy said it is still only 50% through the seismic interpretation process. Analysis and interpretation of the data continues.
“Whilst the HRZ remains the company’s primary target and the focus of our short-term activity with the upcoming Icewine#2 well scheduled for spud in the first quarter of next year, the interim results from the 2D seismic acquired earlier this year have significantly exceeded our expectations,” said chief executive Dave Wall.
“It has taken a little longer than initially planned to process and interpret, as the number of features we are seeing is greater than anticipated.”
Wall told investors that the final findings from seismic are due to be announced later this year.
The HRZ shale discovery, estimated to host 3.6bn barrels, is the AIM quoted group’s main focus, both the company and investors have been aware of the significant conventional oil potential in the North Slope region.
This was dramatically underlined in recent weeks as privately owned Caelus Energy announced what it described as a “significant light oil discovery’ after analysis of two wells and new seismic.
Caelus estimated the Smith Bay oil discovery in the order of 6bn barrels within its leasehold area, and added that a broader play, referred to as the Smith Bay fan complex, could exceed 10bn barrels.
Today, 88 Energy’s Wall said: “We expect the two recent billion barrel discoveries in the Brookian sequence by both Armstrong Oil & Gas and Caelus Energy to be a catalyst for increased industry interest in the region.
“Whilst not strictly analogous to the Brookian play potential at Project Icewine, these discoveries highlight the significant conventional oil resource on the North Slope yet to be discovered through utilisation of modern seismic technology.”