Published: February 24, 2017 |

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88 Energy has provided an update on Project Icewine, located onshore North Slope of Alaska.

Highlights:
• Rig contract executed for drilling of Icewine#2 appraisal well

• Doyon Drilling Inc’s (“Doyon”) Arctic Fox rig expected to mobilise to Icewine#2 location between 30th March - 30th April post completion of drilling on nearby acreage

• Spud date revised from late Q1 2017 to early Q2 2017

Managing Director of 88 Energy Limited, Dave Wall commented: “We are delighted to be working with Doyon for the upcoming drilling of Icewine#2. The Arctic Fox is one of the premier rigs on the North Slope and will be coming to us ‘warm’ off its current job, which has several significant benefits.”

“As soon as the Arctic Fox finishes work associated with its current job, we will be ready to start mobilization and rig up for Icewine#2. Spud is now scheduled for a few short weeks post our initial plan of late Q1 2017”.

“Additional details in relation to the Icewine#2 well will be released to the market in due course”.

ICEWINE#2 PROGRESS UPDATE

On February 16, 2017, Accumulate Energy Alaska, Inc entered into a contract with Doyon Drilling Inc to utilize the drilling rig, Arctic Fox, for drilling of the Icewine#2 appraisal well. The Arctic Fox is currently completing drilling operations on nearby acreage on the North Slope and is expected to mobilize to the Icewine#2 wellsite between March 30th and April 30, 2017, with spud to follow shortly thereafter.

PROJECT ICEWINE OVERVIEW

In November 2014, the Company entered into a binding agreement with Burgundy Xploration (BEX) to acquire a significant working interest (87.5 percent, reducing to 77.5 percent on spud of the first well on the project) in a large acreage position on a multiple objective, liquids rich exploration opportunity onshore Alaska, North America, referred to as Project Icewine. In June 2016, the gross acreage position was expanded to 271,119 contiguous acres (210,250 acres net to the Company). In December 2016 the Company successfully bid on additional acres. On award the Project Icewine gross acreage position will be further expanded to ~690,000 contiguous acres (~400,000 acres net to the Company assuming all rights are taken up). 

The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5 percent royalty.

The HRZ liquids-rich resource play has been successfully evaluated based on core obtained in the recently completed (December 2015) Icewine #1 exploration well, marking the completion of Phase I of Project Icewine. Phase II has now commenced, with a followup appraisal well, Icewine#2, due to spud early 2Q2017. Icewine#2 has been designed as a vertical well with a multi-stage stimulation and flow test, to assess the production potential of the HRZ.

Significant conventional prospectivity has also been identified on recently acquired 2D seismic across the project acreage.

Source: (February 16, 2017) Energy Business Review

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