TIDM88E
RNS Number : 6852R
88 Energy Limited
30 October 2023
This announcement contains inside information
88 Energy Limited
PROJECT PHOENIX - BFF CONTINGENT RESOURCE ESTIMATE
Highlights
-- Following Pantheon Resources Plc declaring a significant
contingent resource for the Lower BFF, 88 Energy has appointed
independent consultants NSAI to assess the BFF reservoir at Project
Phoenix.
-- The Company anticipates that NSAI will be able to complete
the maiden contingent resource estimate in November 2023 for the
BFF which may lead to Hickory-1 being confirmed as a discovery
.
-- Certification of a contingent resource for the BFF reservoir
would be a significant milestone for the Company, allowing the
focus of Hickory-1 testing to shift to the shallower
reservoirs.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or
the Company) is pleased to announce that it has recently engaged
the independent resource certifier, Netherland, Sewell &
Associates, Inc (NSAI) following Pantheon Resources Plc declaring a
significant contingent resource for the Lower Basin Floor Fan.
The Basin Floor Fan (BFF) reservoir was the deepest of the
multiple hydrocarbon-bearing pay zones intersected during the
drilling and logging of the Hickory-1 exploration well . NSAI will
assess the BFF reservoir at Project Phoenix for a maiden contingent
resource estimate based on Hickory-1 results and nearby offset well
results, which may lead to the Hickory-1 being confirmed as a
discovery.
Figure 1 shows the globally recognised resource classification
framework published by the Society of Petroleum Engineers and known
as the Petroleum Resources Management System (PRMS 2018). The
maturation of a project from exploration to development and finally
production requires the project to also upgrade its resource
classification from Prospective Resources to Contingent Resources
and finally to Reserves. It is the Company's strong intention to
make this progression for as many reservoirs as possible, with the
first milestone expected to be achieved imminently for the BFF,
followed by flow testing of multiple reservoirs at the Hickory-1
location. If successful, this data will then be integrated into a
subsequent Resource Assessment later in 2024 with the intention of
obtaining the Contingent Resource classification for all tested
reservoirs.
To assist in this matter NSAI has commenced reviewing and
integrating existing data of all reservoirs, specifically:
-- Existing Prospective Resource Assessment carried out
independently by Lee Keeling and Associates in 2022, prior to
drilling of Hickory-1;
-- Hickory-1 drilling and logging results;
-- Any relevant data beyond 88 Energy's acreage, such as results
from wells in the adjacent acreage that could be considered
analogous to Project Phoenix;
-- 88 Energy and publicly available seismic data
A particular focus for both the Company and NSAI has been to
assess all available data from the BFF reservoir. Based on initial
assessment, it has been concluded that a Contingent Resource
classification is likely to be certified by NSAI imminently, ahead
of flow testing at Hickory-1, based on the following:
-- Two successful flow tests achieved from two attempts in the
adjacent acreage at Talitha-A and Theta West-1;
-- High quality seismic data demonstrates BFF reservoir
continuity from both Talitha-A and Theta West-1 to Hickory-1 and
extension south to Icewine-1;
-- Log data and petrophysical interpretations are similar across all four wells.
Contingent Resource estimates for the Shelf-Margin Delta (SMD-B)
and Slope Fan System (SFS) reservoirs are targeted to be obtained
post the successful flow testing of these shallower zones at
Hickory-1, due to the quantum of data available at this time. It is
important to note however, the SMD-B has one successful flow test
that was recently achieved at Alkaid-2 and the SFS has achieved
three successful flow tests to date (Alkaid-1, Talitha-A and
Alkaid-2).
Figure 1: Resources Classification Framework and Sub-Classes
based on Project Maturity
This announcement has been authorised by the Board.
Media and Investor Relations
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email: investor-relations@88energy.com
Fivemark Partners , Investor and Media Relations
Michael Vaughan Tel: +61 422 602 720
EurozHartleys Ltd , Dale Bryan Tel: + 61 8 9268 2829
Cavendish Securities Plc Tel: + 44 131 220 6939
Neil McDonald / Derrick Lee
Pursuant to the requirements of the ASX Listing Rules Chapter 5
and the AIM Rules for Companies, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 40
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified
Geologist/Geophysicist who has sufficient experience that is
relevant to the style and nature of the oil prospects under
consideration and to the activities discussed in this document. Dr
Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and
reserve estimates to be fairly represented and consents to its
release in the form and context in which it appears. His academic
qualifications and industry memberships appear on the Company's
website and both comply with the criteria for "Competence" under
clause 3.1 of the Valmin Code 2015. Terminology and standards
adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this
document.
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