88 Energy Ltd (AIM: 88E, ASX: 88E, OTC: EEENF) has identified a multi-reservoir potential at the Canning Prospect, part of Project Leonis in Alaska, with estimated resources amounting to hundreds of millions of barrels.
Today, the exploration company announced its inaugural resource estimate for the Canning area, projecting up to 798 million barrels of prospective resources. This estimate encompasses both the Canning Prospect and the Upper Schrader Bluff (USB) formation.
The resource disclosure is based on an internal evaluation, which estimates the Canning Prospect to hold a ‘low case’ scenario of 136 million barrels and a ‘high case’ scenario of 469 million barrels.
The average estimate stands at 283 million barrels.
Highlights
· Maiden Internal Prospective Resource Estimate for the Canning Prospect:
§ Material new Prospective Resource declared for the Canning Prospect at Project Leonis.
§ Total estimated net mean Prospective Resource of 283 MMbbls1,2 recoverable from the Canning Formation.
§ Unrisked net 3U (high) 469 MMbbls, 2U (best) 259 MMbbls, and 1U (low) 136 MMbbls estimated1,2.
· Now a Multi-Reservoir Opportunity of Scale: Combined internal gross mean Prospective Resource estimate across the Canning and USB Prospects of 798 MMbbls, with (664 MMbbls net mean prospective resource to 88E (refer Tables 1 and 2 on page 8).
· Planning underway for Tiri-1 Exploration Well: Currently scheduled for H1 CY26, targeting both the Canning and USB Prospects.
· Well Location Selection Underway: Leveraging results from the quantitative interpretation study, targeting completion in Q1 CY25, followed by permitting and operational planning.
· Targeting Shared Well Cost: 88 Energy’s 100% working interest provides strong potential to secure a large proportionate carry-on completion of the active farm-out process, ahead of any future drilling event.
· Project Leonis Represents a Highly Attractive Exploration Opportunity: Strategically located adjacent to the major pipeline system (TAPS) and the Dalton Highway, significantly enhancing any future development and commercialisation potential.
The 88 Energy team is currently selecting well locations and planning for the exploration well, Tiri-1, which is slated to be drilled in the first half of next year.
“We are thrilled to announce the inaugural, internally estimated Prospective Resource for the Canning Prospect,” stated Managing Director Ashley Gilbert.
“The discovery of the Canning Prospect follows a thorough data review, including newly reprocessed and interpreted Storms 3D seismic data, and the results of our recently completed quantitative interpretation study, which encompassed rock physics, AVO, and seismic inversion analyses.
“This investigation has validated substantial potential at both reservoir intervals.”
Gilbert continued, “The Tiri-1 well will be strategically positioned to evaluate both the Canning and USB Prospects, offering shareholders a significant multi-zone exploration opportunity.
“The scheduling of the Tiri-1 exploration well depends on securing a farm-out partner. With our 100% working interest in Project Leonis, we are confident in our ability to obtain a substantial proportionate carry on any future wells.
“Looking forward, our primary focus is on advancing the Tiri-1 well at Project Leonis, which is planned for drilling in Q1 2026, as well as finalizing the necessary funding to conduct a horizontal well test at Project Phoenix.”
