88 Energy Limited (ASX, AIM: 88E) is pleased to provide an update on Project Icewine, located onshore North Slope of Alaska.
• Gross acreage position expanded from ~350,000 to ~460,000 acres
o Netacreagepositionincreasedfrom ~260,000 to ~286,000acres
Project Icewine Lease Award
The Joint Venture was recently awarded certain leases successfully bid on in the 2016 North Slope licensing round. After negotiation and consideration, it was determined to take up 43% of these acres with 88 Energy (via its subsidiary Accumulate Energy Alaska Inc) having a 25% working interest and the remainder with Joint Venture Partner, Burgundy Xploration LLC (BEX), who will have right to Operate.
The quantum of acres and working interest taken up by each party were determined largely by the following factors:
Ongoing confidence by the Joint Venture in the potential of the HRZ shale play
Fine-tuning of the area deemed most prospective for the HRZ shale play
BEX desire to increase its net acreage position and have right to Operate on certain acres
Balance for 88E between increasing its already extensive net acreage position and management of current cash position vs planned work program
Objective to maximise value creation for shareholders whilst minimising dilution
Managing Director, Dave Wall, commented: “The Joint Venture remains committed and confident in the HRZ shale play. The leasing strategy has been designed to strike a balance between this confidence and available capital whilst we build towards completion of the flowback and production testing of the Icewine#2 well in 1H 2018. Additional details on this program as well as the planned 3D seismic acquisition will be released in the coming weeks.”
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