GCI88 Energy summarises progress across Alaskan portfolio, set for multiple milestones in 4Q23 and FY24
() , an Alaska-focused hydrocarbon explorer, issued an update on key activities across its projects on Alaska's North Slope. Currently, 88 Energy's Alaskan portfolio consists of Project Phoenix (75% interest), Project Icewine West (75% interest), Project Loenis (100% interest), and Project Peregrine (100% interest).
88 Energy's assets on Alaska's North Slope. Note that "New Acreage" refers to Project Leonis, and the eastern segment of Icewine has been renamed to Project Phoenix.
At 88 Energy's flagship Project Phoenix, AAO's Rig-111 has been contracted and long lead orders are underway for flow testing of the Hickory-1 well. Flow test planning and permitting is on schedule and targeted to commence in early Q1 2024.
At the adjacent Project Icewine West, 88 Energy said recent mapping of activities on newly identified structures demonstrated "strong potential" for significant further prospective resources.
At its newly acquired Project Leonis, 3rd party mapping has validated 88 Energy's internal fault interpretation and reservoir geometries. A maiden prospective resource estimate for the Upper Schrader Bluff (USB) reservoir is expected by Q1 2024, and farm-out is targeted for FY24 for potential drilling of a new well in 2025/26.
At Project Peregrine, two newly identified prospects (N12 and N13) recently added to the 3rd party-certified prospective resource. There is also potential to assess up to 3 independent prospects from a single Harrier-1 pad via a sidetrack. 88 Energy said discussions are ongoing on potential cost-sharing with near-field operators in coming years.
View from Vox
88 Energy issued a convenient summary of recent progress across its Alaskan portfolio that markets have been excited about in recent months as the company nears a number of milestones in 4Q23 and FY24. At Project Phoenix, 88 Energy has identified multiple hydrocarbon bearing zones across all pre-drill targets, including the new Upper SFS. The Hickory-1 well is currently cased ahead of the upcoming flow test program, which is scheduled to commence in early Q1 2024. The well is targeting 647 million barrels of oil.
While 88 Energy's focus remains on its flagship Project Phoenix and the upcoming flow test of Hickory 1, it has been busy across its broader Alaskan portfolio.
Namely, 88 Energy is building on the drilling success of Hickory-1 and success of other near-field operators in reevaluating neighboring Icewine West's potential. The company is also advancing its recently acquired Project Leonis with a view to prepare a maiden resource estimate in Q1 2024 ahead of targeted farm-out next year and potential drilling of a new well during the 2025/26 Alaskan winter operational season.
Broadly, 88 Energy has benefited from an increasing market focus on Alaska's North Slope resulting in recent exploration farmouts with new investors, as well as a continued positive development environment in Alaska and a 25% increase in the price of Brent oil since mid-2023. After a recent A$3.3m fundraise, 88 Energy remains well-funded for at least another 12 months and progressing at pace through its work programmes, expected to yield multiple milestones over the next year.
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