88 Energy Ltd (AIM: 88E, ASX: 88E, OTC: EEENF) has announced a significant update to Project Phoenix in Alaska. The facility now holds approximately 378 million barrels of gross 2C contingent resources.
This new estimate, provided by independent consultant ERCE, represents a more than 50% increase in the contingent resources in the project’s SMD-B and SFS zones, adding 128 million barrels.
Specifically, the update includes an additional 115 million barrels of gross recoverable liquids (oil and natural gas liquids) and 68 billion cubic feet of gas, translating to an increase of 73 million barrels and 43 Bcf net to 88 Energy.
ERCE has confirmed a “compelling additional upside potential” for the project’s Kuparuk, SMD-A, and C reservoirs. The consultant’s estimates validate both the project and 88 Energy’s strategic plans for Phoenix, which is 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,” said 88 Energy managing director Ashley Gilbert 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 emphasized that the company is now focused on planning an extended horizontal flow test of the SMD reservoir, utilizing the existing Franklin Bluffs gravel pad infrastructure. Additionally, discussions are ongoing with their joint venture partner regarding the next steps for the project.
He mentioned that an agreement with partner Burgundy Exploration could allow them to cover 88 Energy’s share of expenses for the 2025/26 work program in exchange for a larger stake in Phoenix.
Furthermore, 88 Energy plans to initiate a formal farm-out process for Phoenix in the fourth quarter to ensure that the next phase is well-funded. Currently, 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, with the other being Leonis, which is 100% owned by the company and also contains several hundred million barrels of resources, and is undergoing its own farm-out process.
