88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has engaged independent consultant NSAI to review Project Phoenix in Alaska, following what the company described as a “significant” new contingent resource being declared by Pantheon Resources in neighbouring acreage.
The company, in a statement, said it expects the industry consultant to be able to complete the maiden contingent resource estimate in November, and that it may result in Hickory-1 being confirmed as a discovery.
If confirmed, 88 Energy said that certification of a contingent resource for the BFF reservoir would be a significant milestone for the company.
“The Basin Floor Fan reservoir was the deepest of the multiple hydrocarbon-bearing pay zones intersected during the drilling and logging of the Hickory-1 exploration well,” the company said.
“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.”
The newly completed mapping extends over four miles and correlates with strong oil potential, as evidenced by the Icewine-1 well, the corporate broker said.
Cavendish further noted that the Upper SFS exhibited some of the best reservoir conditions during drilling, with porosity levels reaching up to 16%.
These promising conditions are in addition to the 647 million barrels of prospective oil resources previously identified before drilling commenced.
In related developments, 88 Energy has finalised preparations for flow testing in another target area, Hickory-1.
A drilling rig has been secured, and tests are slated to begin as early as the first quarter of 2024. Resource estimates for the Upper SFS are still pending and are expected to provide further insights into the project’s potential.