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.