Project Phoenix

High Impact, INFRASTRUCTURE-LED ADVANCED APPRAISAL / PRE-DEVELOPMENT

Operator | ~75% WI

290 MMBO Unrisked net mean prospective resources1,3

157 MMBOE 2C Net Contingent Resources2,3

Hickory-1 drilled in March 2023, validated the presence of multiple hydrocarbon-bearing zones across all 6 pre-drill targets and obtained quality data to optimally design and plan a flow test that was successfully completed in April 2024 confirming significant new resource at both the flow tested Upper SFS and SMD-B reservoirs.

PROJECT
PHOENIX

I.   Flow tests of upper sfs and smd-b reservoirs completed via small 20ft perforated sections in vertical well

– USFS test produced a peak flow rate over 70 bopd(1)
– SMD-B test produced a peak flow rate ~50 bopd(2)

II.   Hickory-1 has three independent discoveries, the previously announced bff reservoir and the newly confirmed upper sfs and smd-b reservoirs

III.   Results confirm producibility of multiple reservoirs at project phoenix

IV.   Significant encouragement justifies advancement towards horizontal well drilling and early production system test

  1. Refer to ASX Announcement dated 2nd April 2024 for further details
  2. Refer to ASX Announcement dated 15th April 2024 for further details 
Background
  • Situated on the Central North Slope, Alaska and close to existing infrastructure.
  • The Company has held the acreage since 2015 and in that time conducted 2 well penetrations, Icewine-1 (2016) and Icewine-2 (2017). Both were designed and drilled to test a deep unconventional play and positive drilling results within the shallower Brookian reservoirs (SMD play) were overlooked due to the different focus of those drilling programs.
  • Previously named Icewine East, the renaming to Project Phoenix, reflects the refreshed exploration strategy that focuses on shallow, conventional reservoirs that are proven oil-bearing within adjoining acreage to the North, on correlatable sequences with oil shows in Icewine-1.
  • The project has access to an extensive 2D seismic database that facilitated initial determination of prospective volumes and licensed 225km2 Franklin Bluffs 3D seismic data survey (FB3D) covering the acreage in June 2022.
  • Seismic studies of the FB3D, including Amplitude Versus Offset (AVO) analysis and seismic inversion were used to optimise the drilling location of Hickory-1.

Successful Hickory-1 flow test delivers platform for monetisation of Project Phoenix

1.Refer to the ASX release dated 15 April 2024 for full details.
2.Refer to the ASX release dated 2 April 2024 for full details.
3.Associated with the Basin Floor Fan reservoir. Refer to the ASX release dated 6 November 2023 for full details

Hickory-1 contains 3 independent discoveries

 

Contingent Resources: Basin Floor FanNet Entitlement to 88 Energy 4,5
Probabilistic MethodLow (1U)Best (2U)High (3U)
Oil Million Barrels112865
NGL Million Barrels2257137
Oil + NGL Million Barrels3385202
Gas BillionCubic Feet160394890
Total Million Barrels of Oil equiv.62157364

Managing Director, Ashley Gilbert, commented:

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”

We look forward to updating shareholders as we advance Project Phoenix into the next exciting phase of detailed appraisal and pre-FEED assessment.”

4. Net entitlement to 88E is approximately 63%
5. 
Refer to ASX announcement dated 6 November 2023 for full details with respect to the contingent resource estimate, associated risking and Cautionary Statement on page 3

INFRASTRUCTURE LED EXPLORATION

Fast-tracked, cost-effective future commercialisation

Initial Early Production System

I. Positive flow test results expedite extended horiontal well test planning

II. Access to Infrastructure allows for accelerated extended well test of ling reach horizontal wells to form an early production system

III. Low-Cost early production system provides valuable production data with attractive economics and can be tailored & Modified to Optimise the long-term development plan for Phoenix’s Vast resources.

Phased development minimises upfront CAPEX

Planned multi-frac long horizontal well development

Scalable model enables development flexibility

Location provides Low-CAPEX future development

Simple TAPS Tie-in enables accelerated commercialisation and sale of oil

Adjacent to Dalton Highway and Proximate to Deadhorse

  • 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 Valdez Marine terminal
  • Proximity to TAPS provides immediate export infrastructure minimising development capex and time to commercialisation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMED BY ANALYSIS OF AN EXTENSIVE DATA SUITE

High quality 2D and 3D Seismic Data interpretation supported by AVO analysis

  • Extensive 2D seismic database access highlighted prospective volumes
  • Franklin Bluffs 3D seismic data licenced in June-22 by 88E
  • 3D and AVO analysis optimised drilling location
  • Highest energy region in acreage located Northeast adjacent to shelf break
  • Seismic Data shows thick reservoir development
  • RMS amplitude extractions from SMD indicate higher quality sands at Hickory-1 than Icewine-1

HICKORY-1 VS ICEWINE-1 AVO ANOMALIES

NET ENTITLEMENT PROSPECTIVE RESOURCE (MMBO, UNRISKED)
Low (1U)Best(2U)High (3U)Mean
Prospects Total922806412901
NET ENTITLEMENT (~63%) CONTINGENT RESOURCES2
Low (1C)Best(2C)High (3C)
TOTAL MILLION BARRELS OF OIL EQUIVILANT62157364
  1. Pre-drilling net entitlement to 88E. Refer to the ASX release dated 23 August 2022 and also 6 November 2023 for full details with respect to the Prospective Resource estimate, associated risking and Cautionary Statement below. Estimates pre-Hickory-1 flow test. Contingent Resource estimate to be completed and updated.  
  2. Post-drilling net entitlement to o 88E associated with the Basin Floor Fan reservoir. Refer to the ASX release dated 6 November 2023 for full details with respect to the BFF Contingent Resource estimate.  
  3. 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.

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

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