Project Phoenix
Operator | ~75% WI
157 MMBOE 2C Net Contingent Resources2
290 MMBO Unrisked net mean Prospective Resources1,3
Project Phoenix is an oil-bearing conventional reservoir play identified during the drilling and logging of Icewine-1 and Hickory-1 and adjacent offset drilling and testing.
Strategically located along the Dalton Highway, Project Phoenix is adjacent to the Trans-Alaskan Pipeline System (TAPS).
88 Energy has licensed 225 km2Â Franklin Bluffs 3D seismic data survey and has access to an extensive 2D seismic database. The Middle Schrader Bluff can be extensively mapped using the licensed seismic data, which highlights the full extent of the SMD, SFS and BFF play fairways within Project Pheonix and the surrounding acreage
- Post discovery flow test net entitlement to 88E. Refer to the ASX release dated 18 September 2024 for full details with respect to the Contingent Resource estimate, associated risking and Cautionary Statement below.Â
- Contingent Resource estimate. Â
- Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
PROJECT PHOENIX HIGHLIGHTS
Flow test of upper SFS and SMD-B reservoirs completed via small 20FT perforated sections in vertical well
USFS Test produced a peak flow rate 70 bopd4 measuring approximately 40-degree API gravity
SMD-B Test produced a peak flow rate ~50 BOPD5 measuring approximately 39-degree API gravity
4. Refer to ASX Announcement dated 2nd April 2024 for further details
5. Refer to ASX Announcement dated 15th April 2024 for further details
Hickory-1 has three independent discoveries, the previously announced BFF reservoir and the newly confirmed upper SFS and SMD-B Reservoirs
Table1: Summary of Project Phoenix gross Contingent Resources estimates by NSAI and ERCE
Project Phoenix: | Gross (100%) Contingent Resources4 | ||||
---|---|---|---|---|---|
Reservoir | Auditor | UoM | Low (1C) | Best (2C) | High (3C) |
SMD-B | ERCE1,3 | MMBOE | 11 | 38 | 124 |
Upper SFS | ERCE1,3 | MMBOE | 9 | 34 | 113 |
Lower SFS | ERCE1,3 | MMBOE | 13 | 56 | 194 |
BFF | NSAI2,5 | MMBOE | 99 | 250 | 579 |
Total | 132 | 378 | 1,011 |
Table 2: Summary of Project Phoenix net entitlement to 88 Energy (63.3%) Contingent Resources estimates by NSAI and ERCE
Project Phoenix: | Net (~63.3%) Contingent Resources 4,6 | ||||
---|---|---|---|---|---|
Reservoir | Auditor | UoM | Low (1C) | Best (2C) | High (3C) |
SMD-B | ERCE1,3 | MMBOE | 7 | 24 | 79 |
Upper SFS | ERCE1,3 | MMBOE | 6 | 21 | 72 |
Lower SFS | ERCE1,3 | MMBOE | 8 | 35 | 123 |
BFF | NSAI2,5 | MMBOE | 62 | 158 | 367 |
Total7 | 83 | 239 | 640 |
Notes to Tables 1 and Table 2:
- ERCE: ERCE Australia Pty Ltd
- NSAI: Netherland, Sewell & Associates Inc.
- Refer to page 6, Appendix 2 and disclaimers for further details.
- Million Barrels of Oil Equivalent (MMBOE) of estimate contingent resource. NGLs are converted to oil equivalent volumes on a constant ratio basis of 1:1. Gas is converted to oil equivalent volumes on a constant ratio basis of 5.5 BCF per 1 MMBOE.
- Please refer to page 7 and ASX announcement dated 6 November 2023 for further details in relation to the BFF Contingent Resource estimate. Note the Basin Floor Fan (BFF) reservoir was drilled and tested on adjacent acreage by Pantheon Resources
- 88 Energy net resource entitlement of ~63.3% has been calculated using an average 74.3% working interest net of a 12.5% government royalty and a 4% Overriding Royalty on 18 leases.
- Totals by reservoir rounded and project total may not sum due to rounding.
Table 3: Summary of Project Phoenix Contingent Resources marketable liquid estimates
Project Phoenix: | Contingent Resources: Marketable Liquids 2 | |||
---|---|---|---|---|
Probabilistic | UoM | Low (1C) | Best (2C) | High (3C) |
Net to 88E (63.3%)3,4 | MMbbl1 | 52 | 159 | 448 |
Total gross (100%) | MMbbl1 | 83 | 251 | 708 |
Notes to Table 3:
- MMBBLs of hydrocarbon liquids (oil and natural-gas liquids). NGLs are converted to oil equivalent volumes on a constant ratio basis of 1:1.
- Gas is excluded given the limited market currently on the North Slope of Alaska. Future markets are anticipated to open with potential development of gas infrastructure under consideration. Refer to page 6 for further details with regard to hydrocarbon type and estimates
- 88 Energy net resource entitlement of ~63.3% has been calculated using an average 74.3% working interest net of a 12.5% government royalty and a 4% Overriding Royalty on 18 leases.
- Sources are ERCE Australia Pty Ltd (for SMD-B and SFS reservoirs) and Netherland, Sewell & Associates Inc (for BFF reservoir), arithmetically summed.
Results confirm producibility of multiple reservoirs at project phoenix
Significant results justify advancement towards horizontal well drilling and early production system test
- This timeline is indicative and subject to change. The Company reserves the right to alter this timetable at any time. Horizontal production test subject to farm-out/funding as well as government and other approvals.
- The Company intends to undertake a farm-down of a portion of its working interest to fund Project Phoenix’s forward work programme. While negotiations are currently underway with joint venture partner Burgundy Xploration, 88 Energy also plans to run a separate, independent farm-out process in parallel to fully monetise Project Phoenix. This dual-track approach could potentially lead to one or more additional parties joining the project.
Multiple commercialisation Pathways
- Adjacent to 414 mile Dalton Highway, running from Deadhorse in the north to the Elliot Highway in the South provides excellent access to services
- Phoenix acreage is also traversed north to south by the Trans-Alaska Pipeline System (TAPS)
- TAPS is one of the worlds largest pipeline systems, consisting of the trans-Alaska crude oil pipeline, 11 pump stations, several hundred miles of feeder pipelines and the Valderz Marine terminal
- Proximity to TAPS provides immediate export infrastructure minimising development capex and time to commercialisation
- Access to infrastructure allows for accelerated extended well test of long reach horizonal wells to form an early production system
- Low-cost early production system provides valuable production data with attractive economics and can be tailored and modified to optimise the long-term development plan for Phoenix’s vast resources
HICKORY-1 DISCOVERY WELL SUCCESSFULLY FLOW TESTED TWO RESERVOIRS
The Hickory-1 discovery and production tests represent a significant milestone for 88 Energy and its shareholders. The success moves us significantly closer to achieving our ambitions of developing and producing from our high-impact Alaskan portfolio. The well test results confirm our long-held views of the producibility of the SMD and SFS reservoirs at Project Phoenix, which have also been successfully tested on adjacent acreage to the north. With hickory-1 now boasting 3 independent discoveries
Ashley Gilbert, Managing Director