88 Energy Limited reported that it has signed a licensing agreement with SAE for the use of SAE's FB3D seismic data. The FB3D seismic data was acquired in 2015 by SAE and covers approximately 86 square miles, predominantly over the Icewine East acreage. More importantly, the FB3D extends across an area where the Shelf Margin Delta (SMD), Slope Fan Set (SFS) and Basin Floor Fan (BFF) play fairways have been independently mapped (by Jordan & Pay) on the Icewine East acreage. The FB3D data will assist the Company through subsequent analysis and review, including Amplitude-variation-with-offset analysis (AVO analysis) and simultaneous seismic inversion, in defining `sweet spots' for each play and hence determine optimal drilling locations for future exploration and appraisal wells. In addition, the FB3D will provide key data for potential farm-out partners to assess as part of their due diligence program. Project Icewine East; The FB3D seismic data is to be used to further mature the conventional prospectivity of the Project Icewine East acreage, where it is anticipated that it can confirm the prospectivity already identified and mapped on 2D seismic data. Importantly, future drilling locations in the Icewine East acreage will be supported by AVO analysis, which is often used as a qualitative exploration tool. AVO responses can be associated with the presence of hydrocarbons in good quality reservoirs; an association which becomes more reliable when calibrated to actual fluid content (hydrocarbons) and log data from nearby wells. It is also worth noting the success that Pantheon has had in utilising its 3D data to locate Alaskan exploration and appraisal wells. 88 Energy is targeting a similar or better outcome from its use of the FB3D data. In addition, the Company is continuing with its planned farm-out of the Icewine East acreage. The Company is hopeful of achieving a positive outcome from the farm-out process given the extensive dataset and track record that significantly de-risks the Icewine East acreage, including:
High quality 2D and 3D seismic datasets, as well as Icewine-1 and Icewine-2 well data; Soon-to-be-completed new independent prospective resource report, which is anticipated to demonstrate significant resource volumes that can support a material development; Nearby Brookian wells, Alkaid-1, Talitha-A and Theta West-1, having flowed 35 to 40 API oil, with all reservoir units independently mapped onto the Icewine East acreage; Icewine East acreage being strategically located on the Dalton Highway, with the TAPS pipeline running through the acreage providing excellent access to infrastructure and services; 88 Energy's excellent track record on delivering exploration wells on the North Slope, and its clear understanding of requirements to drill in Alaska; Recent high oil prices renewing investment interest in the sector; and Strong investor support for Pantheon (AIM:PANR, ~GBP 690M /~AUD 1.2Bn market
capitalisation as at 23 June 2022) in the adjacent acreage, which presents potential material upside for both 88 Energy and also any potential farm-out partners. The Company anticipates that the farm-out process will continue over the coming months which will include additional due diligence on recent data, followed by detailed negotiations with new potential partners. Execution and completion of a potential transaction is not guaranteed and remains subject to all final documentation being agreed and due diligence completed. There is no guarantee that any negotiations will lead to a binding agreement or a completed transaction, and the Company may elect to cease farm-out discussions ahead of any decision to drill a future exploration well in the Icewine East acreage.