88 Energy Limited (the “Company”) announces that its shares have been placed in a trading halt on the Australian Securities Exchange (“ASX”) pending the release of an announcement in relation to underwriting of listed options in the Company (the “Options”). The Options have a strike price of A$0.02 and an expiry date of 2 March 2018.
The Company confirms that no terms for any such underwriting have been agreed and there can be no guarantee that any transaction will be completed.
About 88 Energy:
88 Energy has a 77.5% working interest and operatorship in ~325,000 acres onshore the prolific North Slope of Alaska (“Project Icewine”). Gross contiguous acreage position for the Joint Venture is 458,097 acres (88E 286,589 net acres). The North Slope is the host to the 15 billion barrel Prudhoe Bay oilfield complex, the largest conventional oil pool in North America. The Company, with its Joint Venture partner Burgundy Xploration, has identified highly prospective play types that are likely to exist on the Project Icewine acreage – two conventional and one unconventional.
The large unconventional resource potential of Project Icewine was independently verified by leading international petroleum resource consultant DeGolyer and MacNaughton. In addition to the interpreted high prospectivity, the project is strategically located on a year-round operational access road and only 35 miles south of Pump Station 1 where Prudhoe Bay feeds into the Trans Alaska Pipeline System. The Company acquired 2D seismic in early 2016 to take advantage of the globally unique fiscal system in Alaska, which allowed for up to 75% of 1H2016 exploration expenditure to be rebated in cash.
Results from the seismic mapping and prospectivity review are encouraging, and form the basis of a conventional prospectivity portfolio for Project Icewine. In late 2015, the Company completed its maiden well at the project, Icewine#1, to evaluate an unconventional source rock reservoir play which yielded excellent results from analysis of core obtained from the HRZ shale. The follow-up well with a multi-stage stimulation and test of the HRZ shale, Icewine#2, spud in early 2Q2017. Flow testing at Icewine#2 is scheduled to re-commence in April/May 2018.
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