GCI88 Energy boosts Project Phoenix resource by 50% in major update
() , an Alaska-focused hydrocarbon explorer, announced a significant resource upgrade for its flagship Project Phoenix on Alaska's North Slope. The existing gross 2C contingent resource has been increased by 50% with an additional gross 128 mmboe (81 mmboe net to ) added from the SMD-B and SFS reservoirs (see map below).
The upgrade comprises of 115 MMbbl of gross recoverable hydrocarbons (73 MMbbl net to ) and 68 bcf of gross recoverable gas (43 bcf net to ). In total, estimates from ERCE and Netherland, Sewell & Associates have confirmed Phoenix as a large multi-reservoir discovery, with a combined gross 2C contingent resource of c. 386 mmboe.
88 Energy also confirmed the project's development and commercial characteristics, including a marketable 2C resource of c. gross 251 MMbbls (159 MMbbl net to ) of oil and natural-gas liquids across 4 stacked reservoirs, accessible from a single location. The project is located on Alaskan state land, directly adjacent to the Trans-Alaskan Pipeline System and Dalton Highway, close to the oil and gas services hub at Deadhorse.
Ashley Gilbert, Managing Director of 88 Energy, commented: "This additional Contingent Resource estimate reaffirms the substantial potential of Project Phoenix, with four independent reservoirs now confirmed as discoveries. The confirmation of a multi-hundred-million-barrel discovered oil and NGL resource is a major milestone for 88 Energy and its shareholders."
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88 Energy reports a large 50% resource upgrade for its flagship 74.3%-owned Project Phoenix on Alaska's North Slope, further solidifying the asset's significant commercial potential. Investors welcomed the news, sending shares 6% higher on Wednesday.
The multi-reservoir discovery is now up to a gross 2C 378 mmboe, with a marketable 159 MMbbl net to identified across 4 reservoirs. There is further significant upside as a prospective net mean unrisked 155 MMbbl was independently verified by Lee Keeling in the Kuparuk, SMD-A and C reservoirs, with a geological chance of success of 71%, 81% and 81% respectively.
For production, is planning long horizontal wells, expected to deliver 6-12 times greater flowrates than was observed during the flowtest of the Hickory-1 discovery well earlier in 2024. A horizontal flowtest and early production system of the SMD reservoir are currently in planning stages.
Further helping the development schedule, reported ongoing discussions with its JV partner on the project Burgundy Xploration that could see Burgundy carry all or part of s share of the 2025/26 work programme capex in exchange for additional working interest in Project Phoenix. Additionally, will initiate a formal farm-out process in Q4 2024 to help fund the next phase of development.
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