Highlights
- Major Milestone Achieved: New Contingent Resources estimates at Project Phoenix for the SMD-B and SFS reservoirs, independently verified by ERCE Australia Pty Ltd (ERCE), a globally respected authority in petroleum reserve and resource auditing.
- Significant Resources Update: Existing Project Phoenix Gross Best Estimate (2C) Contingent Resources increases by over 50%, with an additional gross 128 million barrels of oil equivalent (MMBOE)2, 81 MMBOE Net Entitlement to 88E, added from the SMD-B and SFS reservoirs, comprising:
- 115 million barrels (MMbbl) of Gross recoverable hydrocarbon liquids (oil and natural-gas liquids), 73 MMbbl Net Entitlement to 88 Energy; and
- 68 billion cubic feet (BCF) of Gross recoverable gas, 43 BCF Net Entitlement to 88 Energy.
- Multi-Reservoir Discovery: Estimates from ERCE (SMD-B and SFS reservoirs) and Netherland, Sewell & Associates, Inc (NSAI) (Basin Floor Fan (BFF) reservoir) confirm Project Phoenix as a robust multi-reservoir discovery, with a total combined Gross Best Estimate 2C Contingent Resource of approximately 378 MMBOE (239 MMBOE Net Entitlement to 88E, refer to Tables 1 and 5).
- Material Upside Potential: Prospective Resources of Net Mean Unrisked 155 MMbbl1,3 independently verified by Lee Keeling and Associates Inc, in the Kuparuk (undrilled), SMD-A and C reservoirs (oil interpreted on logs at Hickory-1), offer compelling additional upside potential. Unrisked net 3U (high) of 321 MMbbls, 2U (best) of 153 MMbbls, 1U (low) of 53 MMbbls1,3. The geological Chance of Success (CoS) of these prospects has been estimated as 71%, 81% and 81% respectively.
- Strategic Development Opportunity Confirmed: Featuring the critical characteristics required for future commercialisation and monetisation, including:
- A combined Best Estimate (2C) Contingent Resources of approximately gross 251 MMbbl (159 MMbbl net to 88E) of oil and natural-gas liquids (NGLs) across four stacked reservoirs, accessible from single surface location.
- Located on prime Alaskan State lands, directly adjacent to the Trans-Alaskan Pipeline System (TAPS), and the Dalton Highway, with close proximity to the critical oil and gas services hub at Deadhorse on Alaska's North Slope.
- Premium 37- 40o API gravity oil successfully recovered, for a highly marketable and valuable light oil product.
- Project Advancement Momentum: An extended period horizontal well flow test of the SMD reservoir, utilising the existing Franklin Bluffs gravel pad, is in the planning and design stage with the Joint Venture.
- Constructive Partner Progress: Ongoing discussions with joint venture partner Burgundy Xploration, LLC (Burgundy), could see Burgundy carrying all or part of 88 Energy's share of the 2025/2026 work program in exchange for an additional working interest in Project Phoenix.
88 Energy has reported a further, independently certified Contingent Resource estimate of 73 MMbbl of hydrocarbon liquids and 43 BCF of gas (net, unrisked best estimate (2C)), for the SMD-B and SFS reservoirs in Project Phoenix (~74.3% net working interest). The Contingent Resources at SMD-B and SFS were independently validated by ERCE, a globally recognised authority in petroleum and resource auditing.
Ashley Gilbert, Managing Director of 88 Energy, commented:
'This additional Contingent Resource estimate reaffirms the substantial potential of Project Phoenix, with four independent reservoirs now confirmed as discoveries. The confirmation of a multi-hundred-million-barrel discovered oil and NGL resource is a major milestone for 88 Energy and its shareholders.
We are now focused on planning an extended period horizontal flow test of the SMD reservoir, utilising the existing Franklin Bluffs gravel pad infrastructure. Simultaneously, we are in discussions with our Joint Venture partner regarding the next stage of advancement of the project. This may include Burgundy carrying 88 Energy's share of the anticipated 2025/26 work program in exchange for an additional working interest in Project Phoenix. Additionally, we will initiate a formal farm-out process in Q4 2024 to ensure the next phase of Project Phoenix's activities is well-funded.
Shareholders can look forward to more updates on our progress as we continue to mature and de-risk Project Phoenix towards a future potential commercialisation event.'
Background on Project Phoenix (~74.3% WI)
The Hickory-1 discovery well was drilled in February 2023 and flow tested during the Alaskan winter season in Q1/Q2 CY24. Testing focused on the two shallower primary targets, the Upper SFS (USFS) reservoir, previously untested, and the SMD-B reservoir. Each zone was independently isolated, stimulated, and flowed to the surface either naturally or using nitrogen lift to facilitate efficient well clean-up.
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Source: 88 Energy
