88 Energy Limited (LON:88E, ASX:88E) has provided an update on its operations in Alaska, where it has both conventional and shale interests within the Project Icewine acreage.
The company said that a 450 square kilometre 3D seismic exploration programme was completed on March 28, highlighting that the work was finished on schedule and within budget.
It now expects processed data from the first areas will be available in June.
These efforts are designed to identified and advance the conventional oil potential at Icewine, and significantly, the findings will support a potential farm-out a stake in the project and plans for a 2019 exploration drilling programme.
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88 Energy explained in detail that certain technical work will take place with the data, to gain further insights through analysis. The seismic programme was targeting an area that was seen to have several large leads, which were previously identified in 2D seismic data.
The company told investors that it is “extremely encouraged” by the fact that recent conventional and historic analog discoveries, located to the north of Icewine, had been delineated on 3D seismic.
Additionally, in regards to the HRZ shale discovery, the company noted that the planned re-opening of the Icewine-2 well remains on schedule for April/May, though exact timing is dependent upon warmer temperatures arriving in Alaska over the coming weeks of spring.
"The 88E team have been extremely busy on multiple fronts over the last few months, with refinancing of debt, exercise of options, expanding our lease position, planning for, and acquisition of, two 3D seismic surveys and, of course, the re-opening of the Icewine#2 well,” said Dave Wall, 88 Energy managing director.
A pivotal period is coming up
He added: “The remainder of 2018 promises to be pivotal for the company and its shareholders, with near-term activity related to the Icewine#2 flow test, expected prior to mid-year, results from two 3D seismic acquisitions and one or more farm-out transactions targeted for the second half of the year."
88 Energy also noted that it is continuing in-house evaluation of recently acquired leases, referred to as the ‘Yukon Gold leases’, which are seen to contain an oil discovery.
The company said it has now hired a contractor and completed a 3D seismic programme, spanning about 96 square kilometres, and it is expected to assess the potential volumes within the discovery, and, additionally, identify further prospectivity in the area.
Work started on March 24 and completed on April 1. The quick-fire programme was fast tracked to opportunistically benefit from an available seismic crew, the company noted.
The processed data is expected to be ready in the fourth quarter of 2018.
“The strong support for the recent option exercise has meant we have been able to accelerate assessment of the Yukon Gold leases, with the costs of the planned 3D acquisition being less than half of the monies receipted from the option exercise process,” Wall said.