88 Energy Limited (ASX, AIM: 88E) is pleased to announce the following operational update in relation to Project Icewine, located on the North Slope of Alaska (77.5% Working Interest, Operator).
Permitting remains on track for completion well ahead of the scheduled spud date for Icewine#2 in late Q1 2017. Two of the major permits, the Plan of Operations and Oil Discharge Prevention and Contingency Plan, have just passed major milestones in the permitting process with no problems identified.
With the design of the well, logging program and stimulation design now largely finalised, 88 Energy anticipates conclusion of key vendor contracts over the coming weeks, including rig selection. Availability of equipment for the planned design and schedule has been ascertained and no issues are expected on this front.
2D Seismic Update
Final processing of the Icewine 2D vibroseis data acquired by 88 Energy during the first half of 2016 across the Project Icewine acreage was successfully completed in November.
Conventional Prospectivity Review
The range of preliminary leads identified in the Brookian and Beaufortian sequences, along with additional mapped leads have been matured and now form the basis of a diverse conventional Prospect and Lead inventory across the Project Icewine acreage.
The majority of leads identified are stratigraphic: typically comprising slope apron, basin floor fan systems and turbidites. These leads are within proven play fairways with successful analogues on the North Slope.
A number of leads are associated with enhanced seismic amplitudes which is considered promising as it can indicate the presence of hydrocarbons. To further evaluate the enhanced amplitudes, an amplitude versus offset (AVO) analysis was undertaken - this work is ongoing and the initial results are encouraging.
AVO response associated with Leads and Prospects is a useful tool as it can be used to rank and de-risk exploration targets.
The forward plan is to fully mature the conventional Prospect and Lead portfolio and highgrade potential candidates for future exploration drilling. This will include finalisation of the volumetric estimation of the prospective resource potential, prior to year end.
Managing Director of 88 Energy Limited, Dave Wall commented:
“Operational activity associated with the near term spud of Icewine#2 is ramping up and the Company is on the cusp of testing the flow potential of the HRZ resource play. Our large acreage position and the quality of the rock means that the potential resource prize is enormous and success would be truly transformational.
Additionally, the conventional portfolio continues to firm up, exceeding our expectations.
We look forward to providing additional news on both fronts in the near future.”