88 Energy one step closer to Icewine-1 spud
88 Energy (ASX:88E) has received one of three key pieces of regulatory approval prior to drilling the Icewine-1 well in Alaska – and the regulator is holding its application up as a sterling example.
The ASX-listed company told the market this morning that its ‘Lease Plan of Operations’ application to the Alaskan Department of Natural Resources (DNR) had been given the tick from the regulator.
The approval is one of three key pieces of approval needed before a mid-October spud of the Icewine-1 well, which is testing an unconventional oil play on the Alaskan North Slope.
What’s more, the DNR has asked 88E if it can use its application as an example on its website for other operators to follow.
It still needs to get the sign-off on an oil discharge plan and a final permit to drill, but 88E said it was confident these could be secured well before the well’s mid-October spud date.
The well is being drilled as a vertical hole, primarily targeting the ‘HRZ Shale’, a formation which the US Geological Survey thinks may hold as much as 2 billion barrels of oil and has been identified using the same method used to identify sweet spots of the Eagle Ford Shale.
Independent experts, Degolyer and MacNaughton are more conservative and believe the Company may have as much as 492 million barrels of oil on its hands (gross, prospective, unrisked).
It has a risked mean of 200.3MMbbls of oil, based on a 41% geological chance of success.
Previous drilling into the HRZ has shown porosity to be 18.4%, which is estimated to be about 50% better than the Eagle Ford Shale in Texas.
88E is also looking at conventional oil drilling due to be conducted by Great Bear Petroleum to the north in the next few months as a likely indicator of the conventional potential of the area.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.