USA: 88 Energy Limited has reported a maiden internal Prospective Resource estimate of 381 million barrels of oil (net mean, unrisked) for its Project Leonis in Alaska, where it holds a 100 per cent working interest and a 16.6667 per cent royalty.
The Prospective Resources have been estimated in the Upper Schrader Bluff (USB) reservoir interval within the Project Leonis acreage.
The estimate follows an extensive data review, including 3D and 2D seismic data, well logs, and petrophysical analysis.
Notably, the USB formation is the same proven producing zone as the nearby Polaris, Orion, and West Sak oil fields, which served as important calibration points for the Leonis petrophysical model.
Managing Director Ashley Gilbert expressed excitement about the resource potential and the strategic location of Project Leonis, situated on the North Slope of Alaska, with the Trans-Alaska Pipeline System (TAPS) running through the acreage and Deadhorse just six miles to the north.
88 Energy has commenced permitting and planning processes for the Tiri-1 exploration well, which aims to target the USB zone.
The timing of drilling the Tiri-1 well is dependent on securing a successful farm-out partner, as the company seeks to secure a large proportionate carry on any future well due to its 100 per cent working interest in Project Leonis.
The company is now fully focused on advancing Project Leonis and Project Phoenix, where it expects meaningful progress with key milestones in the coming 6 to 12 months.
Following the successful flow of light oil to the surface from the Hickory-1 well at Project Phoenix, 88 Energy aims to drill horizontal production wells and generate cash flow within the next 24 months, while also unlocking Project Leonis’ potential through an appraisal well program.
88 Energy intends to divest its interest in the Umiat oil field and rationalise the Project Icewine West acreage, which is nearing the end of its initial lease term.
This move aligns with the company’s focused strategy to unlock value from key acreage positions that benefit from their strategic locations.
