88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it will expand its footprint on Alaska’s North Slope after being named “highest bidder” for 10 leases in the latest Alaskan leasing round.
The leases span some 25,600 contiguous acres immediately south of Prudhoe Bay, the company said in a statement, and it is covered by a suite of 3D seismic data and historic well data that the company has access to.
Going forward, the company will refer to these leases as Project Leonis.
"Award of the new acreage demonstrates 88E's commitment to continued exploration on the North Slope and presents as an attractive exploration proposition,” said 88 Energy managing director Ashley Gilbert.
“The acreage benefits from a historical well, which indicated oil shows and calculated pay in the USB [Upper Schrader Bluff] zone of interest, and an existing 3D data suite.
“There is much work to do to understand the regional setting and faulting that defines the potential exploration target before deciding on any future work program."
Historic wells, drilled in the 1980s, targeted deep Kuparuk and Ivishak reservoirs and 88 Energy said that an initial review of data indicated over 200 feet of “low resistivity bypassed log pay” within the USB reservoir, with good porosity and oil shows evident. It added that the USB has been successfully developed in nearby oil fields.
The company noted that the final award of the leases remains subject to an adjudication process and regulatory approvals. A formal award is anticipated in the first half of 2023.