88 Energy (88E ), an Alaska-focused explorer, announced today it has selected a drilling location for its Icewine East acreage in Alaska's North Slope, following analysis of 3D seismic data.
88 Energy relied on recently licensed Franklin Bluffs 3D seismic data (FB3D) and "amplitude variation with offset" (AVO) analysis to define "sweet spots" for each of the mapped play fairways, and identify the location for its future exploration well Hickory-1.
AVO analysis is often used as a direct hydrocarbon indicator to enhance existing 2D and 3D interpretation and improve the probability of geological success, the company said.
Hickory-1 is expected to be drilled in H1 2023, pending planning and permitting. The location is adjacent to the Trans Alaskan Oil Pipeline route and the Dalton Highway, the main north-south all-weather corridor in the state.
Hickory 1 will intersect the Shelf Margin Delta (SMD), Slope Fan System (SFS), Basin Floor Fan (BFF), and Kuparuk (KUP) play fairways, which extend from peer Pantheon Resources' acreage onto Icewine East.
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The 3D seismic data and related AVO analysis detailed in today's announcement have been used to select an ideal location for Hickory-1. This has in turn significantly de-risked Icewine East and given 88 Energy investors confidence in Hickory-1's future profitability.
The project has been further de-risked by recent drilling and flow tests performed on adjacent acreage owned by another Alaska explorer, Pantheon Resources.
Hickory-1 has been designed as a vertical well, to be drilled to c. 12,500 feet and intersect all four of the aforementioned key reservoirs identified in the company's recently announced prospective resource estimate. Drilling is expected to commence in H1 2023 with 88 Energy targeting an estimated 1.03b barrels of oil at Icewine East.
Earlier in August, 88 Energy raised A$14.9m (£8.6m) to finance long lead items required for drilling at Icewine East, as well as strengthen the company's balance sheet and provide capital to finance new ventures. The new capital will ensure the company remains well-funded for the next 12 months, it said.
While 88 Energy's main focus remains in Alaska, the company also acquired in February a 73% interest in production assets located in the Texas Permian Basin (Project Longhorn) through its 75% investment in Bighorn Energy. Bighorn has now added A$22.1m to 88 Energy's net assets.
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