88 Energy (88E ) is expecting an independent resource estimate of Project Icewine acreage, which is on Alaska’s North Slope and in which 88E holds 75% working interest, during 2Q22.
The Alaskan-focused explorer said an ongoing assessment of the preliminary third-party mapping of the Shelf Margin Delta (SMD), the Seabee Lower Basin Floor Fan (BFF) as well as the Slope Fan System (SFS) is progressing as planned and is approaching finalisation.
The mapping of the SMD play indicates extension of the SMD play fairway, where Pantheon Resources has had significant success in recent months, onto 88E’s Project Icewine leases.
In particular, the source rocks (GRZ/HRZ) for the Brookian plays within the Project Icewine area are modelled to be within the oil mature window, with historical wells reporting abundant oil shows and interpreted oil saturations from electric log data, 88E highlighted to investors.
To date, Pantheon Resources’ testing of the Alkaid-1, Talitha-A and Theta West-1 wells, respectively, has confirmed the reservoir deliverability of light, sweet oil, which 88 Energy believes is positive for the prospectivity of the Group’s adjacent Project Icewine acreage.
The results of Pantheon’s Talitha-A well, which Pantheon Resources had re-entered earlier this year following the well’s previous suspension, combined with its earlier Alkaid-1 (2019) well, have been considered as part of a re-evaluation of 88 Energy’s Icewine-1 well data.
In fact, subsequent and independent comparisons of the zone that was tested and flowed light oil in Alkaid-1 at “80-100 BOPD light oil” against the Icewine-1 well, have revealed the porosity and resistivity of a similar 110 ft net section in Icewine-1 well to be higher.
88E explained that higher porosity is indicative of better reservoir quality and higher resistivity is an indicator that more hydrocarbons are present. Given the favourable petrophysical comparison between Icewine-1 and Alkaid-1, 88E is optimistic that a production test in the Eastern Icewine acreage could yield a similar or better result than seen in Alkaid-1’s testing.
Following the recent results from the Talitha-A and Theta West-1 wells drilled by Pantheon Resources 88E has a positive view of the potential of the SMD, SFS and BFF play fairways.
In particular, the Group notes the relative consistency of results over a large area to the north, suggestive of reasonably homogeneous reservoirs that potentially extend into 88E’s acreage.
Pantheon’s planned development wells are expected to produce at rates of over 1,000 BOPD per well via long horizontal wells with multi-stage hydraulic fracturing technology, it outlined.
88 Energy is in the process of finalising mapping of the SFS and BFF play fairways onto the Icewine acreage and expects this work to be completed in April 2022. Once complete, the combined mapping of the three prospects (SMD, SFS and BFF) is set to form the basis of an updated resource estimate at Project Icewine, which is scheduled for completion in 2Q22.
88E, which remains in ongoing discussions in relation to a potential farm-out of the Project Icewine acreage, said due diligence activities and negotiations are advancing with regard to the potential farm-in by a third party and the related work program terms and structure.
It added that the execution and completion of the potential transaction is not guaranteed and remains subject to all final documentation being agreed and due diligence completed and that there is no guarantee that negotiations will lead to an agreement or a completed transaction.
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