Australia

88 Energy delighted with Alaskan farm-out deal with Premier Oil

  • 88 Energy owns a number of conventional and shale prospects in Alaska

  • Premier Oil has farmed-in to the conventional assets at Icewine project and will fund an appraisal well

  • Icewine contains a potential one billion of net prospective resources just in the conventional assets

What it owns

Project Icewine, Alaska

The operator on the majority of 528,000 contiguous acres onshore Alaska in proven oil province, of which 349,000 acres are net to 88 Energy through a 66% working interest, a 10-year leasehold and16.5% royalty

The opportunity comprises unconventional acreage and conventional opportunity on the North Slope

Yukon Gold, Alaska

The recent award of 14,194 acres (100% 88 Energy); Contains historic oil discovery assessing 3D seismic

Western Blocks, Alaska

88 Energy earning 36% by paying 40% of costs for a commitment well on a 400MMbbl prospect; adjacent to recent discoveries

How it's doing?

In August, 88 Energy Ltd (LON:88E, ASX:88E) announced a farm-in deal with Premier Oil (LON:PMO) for the conventional acreage at Icewine.

The FTSE 250 group will pay the full costs of an appraisal well, dubbed “Charlie-1”, up to a total of US$23mln to test the reservoir deliverability of the Malguk-1 discovery made by BP in 1991.

Malguk-1 discovered 251 feet of light oil pay in turbidite sands but was never tested.

Premier estimates an accumulation of more than one billion barrels of oil in place, based on the original well data and its evaluation of the existing 3D dataset.

88 will retain a 30% stake in Area A, with Charlie-1 holding an estimated 63mln barrels net.

On successful completion of the work programme, Premier will have the option to assume operatorship.

Should the Charlie-1 appraisal well prove successful, Premier has the option to earn a 50% working interest in Area B or Area C through spending a further US$15mln.

In December, 88 completed the farm-out with plans for Charlie-1 approved by Premier.

“The final major permit is scheduled for submission in December, with approval expected in January ahead of the scheduled February spud date.”

More details

On the Area A block in the western play fairway the small-cap explorer retains some 720mln barrels of net prospective resources (2.4bn barrels gross).

The central play fairway is now deemed to give 88 Energy some 193mln barrels of net prospective resources (373mln gross), while the eastern play fairway has 96Read More – Source