88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has unveiled a significant update to the contingent resources at Project Phoenix, in Alaska, which is now seen to host some 378 million barrels of gross 2C contingent resources.
The new estimate, provided by independent consultant ERCE, increased the contingent resources in the multi-reservoir project’s SMD-B and SFS zones by more than 50% - adding 128 million barrels to the gross tally.
Specifically, it added 115 million barrels of gross recoverable liquids (oil and natural gas liquids) and 68 billion cubic feet of gas. That equates to an extra 73 million barrels and 43 Bcf net to 88 Energy.
ERCE meanwhile confirmed ‘compelling additional upside potential’ via the project’s Kuparuk, SMD-A and C reservoirs.
The consultant’s estimates validate the project and the company’s plans for Phoenix, which is strategically located adjacent to the Trans-Alaskan Pipeline System (TAPS) and the Dalton Highway.
"This additional contingent resource estimate reaffirms the substantial potential of Project Phoenix, with four independent reservoirs now confirmed as discoveries,” 88 Energy managing director Ashley Gilbert said in a statement.
“The confirmation of a multi-hundred-million-barrel discovered oil and NGL resource is a major milestone for 88 Energy and its shareholders.”
Gilbert added: “We are now focused on planning an extended period horizontal flow test of the SMD reservoir, utilising the existing Franklin Bluffs gravel pad infrastructure.
“Simultaneously, we are in discussions with our joint venture partner regarding the next stage of advancement of the project.”
Gilbert noted that an agreement with partner Burgundy Exploration could see the partner carry 88 Energy’s share of spending for the 2025/26 work programme in exchange for a larger stake in Phoenix.
In parallel, he said that 88 Energy would during the fourth quarter initiate a formal farm-out process for Phoenix, to ensure the next phase of Phoenix is well-funded.
Presently, Phoenix is 74.3% owned by the AIM-quoted exploration firm.
Phoenix is one of two discovery areas being advanced by 88 Energy on Alaska’s North Slope, the other being Leonis which is 100% owned by the company and similarly hosts several hundred million barrels of resources and is the subject of its own farm-out process.