88 Energy's Project Phoenix Sees Major Resource Boost
88E (88E) Share Update September 2024 Tuesday 17th
88 Energy Announces Significant Resource Update for Project Phoenix
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) has announced a significant update to its contingent resources for Project Phoenix, marking a major milestone for the company and its shareholders.
Instant Summary:
- New contingent resources estimates for SMD-B and SFS reservoirs verified by ERCE.
- Over 50% increase in Project Phoenix's Gross Best Estimate (2C) Contingent Resources.
- Addition of 128 million barrels of oil equivalent (MMBOE) from SMD-B and SFS reservoirs.
- Project Phoenix now confirmed as a robust multi-reservoir discovery.
- Strategic development opportunity with significant upside potential.
Resource Update Details
88 Energy Limited has reported a further, independently certified Contingent Resource estimate of 73 MMbbl of hydrocarbon liquids and 43 BCF of gas (net, unrisked best estimate (2C)), for the SMD-B and SFS reservoirs in Project Phoenix. The Contingent Resources at SMD-B and SFS were independently validated by ERCE, a globally recognized authority in petroleum and resource auditing.
The new estimates represent a significant milestone, increasing the existing Project Phoenix Gross Best Estimate (2C) Contingent Resources by over 50%, with an additional gross 128 MMBOE added from the SMD-B and SFS reservoirs. This includes 115 million barrels of Gross recoverable hydrocarbon liquids (oil and natural-gas liquids) and 68 billion cubic feet of Gross recoverable gas.
Multi-Reservoir Discovery
Estimates from ERCE (SMD-B and SFS reservoirs) and Netherland, Sewell & Associates, Inc (NSAI) (Basin Floor Fan (BFF) reservoir) confirm Project Phoenix as a robust multi-reservoir discovery. The total combined Gross Best Estimate 2C Contingent Resource is approximately 378 MMBOE, with 239 MMBOE Net Entitlement to 88 Energy.
Strategic Development Opportunity
Project Phoenix features critical characteristics required for future commercialization and monetization, including a combined Best Estimate (2C) Contingent Resources of approximately gross 251 MMbbl of oil and natural-gas liquids across four stacked reservoirs. The project is located on prime Alaskan State lands, directly adjacent to the Trans-Alaskan Pipeline System (TAPS) and the Dalton Highway, with close proximity to the critical oil and gas services hub at Deadhorse on Alaska’s North Slope.
Project Advancement Momentum
An extended period horizontal well flow test of the SMD reservoir, utilizing the existing Franklin Bluffs gravel pad, is in the planning and design stage with the Joint Venture. Ongoing discussions with joint venture partner Burgundy Xploration, LLC (Burgundy), could see Burgundy carrying all or part of 88 Energy’s share of the 2025/2026 work program in exchange for an additional working interest in Project Phoenix.
The increase in contingent resources is a positive development for 88 Energy, potentially boosting investor confidence and the company's stock price. The strategic location and significant resource potential of Project Phoenix enhance its attractiveness for future commercialization and monetization.
Investor Reaction:
Analysts are likely to react positively to the news, given the substantial increase in resources and the strategic development opportunities. However, the success of ongoing discussions with Burgundy and the execution of the planned flow test will be critical factors for future investor sentiment.
Conclusion:
Investors should keep a close watch on 88 Energy's progress with Project Phoenix, particularly the planned flow test and discussions with Burgundy. These developments will be crucial in determining the project's commercial viability and long-term impact on the company's stock.