88 Energy Ltd (LON:88E) told investors that a range of preliminary leads have now been identified as part of its conventional oil exploration programme.
It said that the forward work programme will mature prospects and leads, and high-grade the best ones into candidates for future drilling.
As part of this process 88 Energy expects to have estimates of the exploration inventory’s resource potential by the end of 2016.
“The conventional portfolio continues to firm up, exceeding our expectations,” Dave Wall said.
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Final interpretation and the initial analysis of new seismic data was completed in November.
The first wave of leads are in the Brookian and Beaufortian sequences, which are proved to host hydrocarbons in the region. The company said it now has a diverse conventional Prospect and Lead inventory across the Icewine acreage, in Alaska’s North Slope.
The majority of the leads are seen to be stratigraphic – i.e. comprises multiple overlaying zones – with features such as the slope apron, basin floor fan systems and turbidites.
It also noted that a number of leads are associated with enhanced seismic amplitudes, which is particularly promising as that can indicate the presence of hydrocarbons, and to further investigate the company is conducting AVO (amplitude versus offset) analysis – and initial results are described as ‘encouraging’.
As well as de-risking ahead of drilling the AVO findings will also help the group rank its leads and prospects.