88 Energy Limited · ASX:88E
88 Energy — Investor Presentation (January 2018)
28 slides from 88 Energy's investor presentation, Jan 31, 2018
Slide 1: Project Icewine North Slope of Alaska - Icewine#2 Operations Update
PROJECT ICEWINE NORTH SLOPE OF ALASKA For personal use only PROJECT PROJECTICEWINE ICEWINEFEBRUARY FEBRUARY2018 2017 OPERATIONS ICEWINE#2UPDATE UPDATE Doyon Arctic Fox DOYON DRILLING, INC.
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in these slides has been prepared by 88 Energy Limited (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with t
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) For personal use only Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required.
Slide 4: North Slope Oil & Gas Activity 2017
North Slope Oil & Gas Activity 2017 Recent Discoveries For personal use only Armstrong/ Repsol Pikka Unit 2015^4 Discovery 1.4BN barrels (2C) Prudhoe Bay^3 ConocoPhillips: Willow 2017 15 BN barrels Discovery >300M barrels rec OSH.ASX November 2017 US$850m transaction Tarn / Meltwater 140M barrels^1
Slide 5: Company Snapshot
Company Snapshot Corporate Snapshot For personal use only 88 Energy Limited Current 88E Board and Management Burgundy Xploration (ASX, AIM: 88E) JV Partner Shares on Issue 4,661m David Wall Managing Director Paul M. Basinski, Founder & CEO Options on Issue 756m Michael Evans Non-Exec Chairman Michae
Slide 6: Icewine Highlights
Project Icewine HIGHLIGHTS Large, Strategic Acreage Position – Vast Majority of HRZ Play now Captured For personal use only • Joint Venture controls 475,000 gross acres (~301,000 acres net to 88E, Operator*) • Strategically located on infrastructure – all year access road / pipeline Primary Target:
Slide 7: HRZ Unconventional: Phase II
HRZ Unconventional: Phase II Icewine#2 Vertical Well, Stimulate & Flowtest For personal use only • Drilling / stimulation completed on time and to date remains under budget • Two stage, multi-perforation cluster stimulation over 128’ interval • Slickwater treatment comprising 27,837 barrels of water
Slide 8: HRZ Unconventional: Phase II - Icewine#2 Workover Schematic
HRZ Unconventional: Phase II Icewine#2 Workover Schematic 1 2 Nitrogen (N2) injected to lighten fluid For personal use only column inside wellbore and reduce OD ID MD Franklin Bluffs Drill Pad inch inch DF (ft) downhole pressure to improve Tundra surface production from reservoir. Base Cellar 114.00
Slide 9: HRZ Unconventional: Where We Started
HRZ Unconventional Where We Started….. For personal use only Investment Thesis: The Project Icewine Joint Venture (PIJV) is advantaged by a proven exploration “toolbox” that allowed it to capture a strategic, technically-driven, first-mover, First Mover Edge low-cost play entry into an extensive, wo
Slide 10: HRZ Unconventional: Where We Are
HRZ Unconventional Where We Are…… For personal use only Icewine #1 & #2 and Regional Well Data: All the Elements For Resource Success Reservoir Quality Completion Quality Parameter Comment Parameter Comment Organic Content Rich and sufficient for world- Clay Content Consistent with other class resou
Slide 11: HRZ Unconventional: Where We Are (cont.)
HRZ Unconventional Where We Are….. (cont.) For personal use only Icewine#2: Results to Date ✓ Proved a large slickwater frac using sand as proppant is achievable in the HRZ - first in Alaskan exploration history ✓ Proved initiating a fracture perpendicular to the bedding plane is achievable in the H
Slide 12: HRZ Unconventional: Where We Are Going
HRZ Unconventional Where We Are Going…… For personal use only Proven Play Distributions Play P10/P90 Sample Size Barnett 9.6 13,575 Geological Unconventional Optimal Engineering Fayetteville 5.4 4,442 Concept Sanctioning Play Fairway & Development Haynesville - LA 5.0 2,135 Haynesville - TX 3.8 659
Slide 13: Unconventional Resource Plays: Modelling Decision Behavior
Unconventional Resource Plays: Modelling Decision Behavior For personal use only Icewine HRZ Shale Play: Encouraging results - attractive to a farminee to progress and create world-class commercial resource Screening Capture Exploration Pilot Appraisal Pilot Early Development Technical and commercia
Slide 14: Icewine Conventional Prospectivity Portfolio
Project Icewine Conventional Prospectivity Portfolio For personal use only Heavenly#1 N Lima Icewine#2 Echo Alpha Stellar Bravo Malguk#1 • Conventional Prospective Resource Potential (mean unrisked) : • 1.96 BN barrels gross; 1.05 BN net to 88E* • Multiple stacked leads predominantly stratigraphic,
Slide 15: Icewine: 2D Seismic Reprocessing
Project Icewine: 2D Seismic Reprocessing Highlights Deeper Potential For personal use only • Additional play potential identified on reprocessed 2D seismic and regional well petrophysics • Stacked Torok and Seabee Fm basin floor fan sands associated with lowstand events • Analogous play type to Melt
Slide 16: Icewine: Conventional Portfolio
Project Icewine: Conventional Portfolio Prospective Unrisked Recoverable Resources • Bravo & Alpha Leads prominent on For personal use only modern 2D seismic • Additional potential identified on legacy 2D – recently reprocessed and interpreted • Stacked leads offer opportunity to test multiple objec
Slide 17: Icewine: Stellar Lead
Project Icewine: Stellar Lead Upper Torok Formation Submarine Fan Stellar: 187 MMBO Gross Mean For personal use only Slope STELLAR: Trap: Structural/Stratigraphic Reservoir: Submarine fan sandstones DEPTH MAP Porosity: 17%; Net to Gross: 35% Top Seal: Slope/basinal fines / U Torok condensed sequence
Slide 18: Icewine: Bravo Lead
Project Icewine: Bravo Lead Seabee Formation Submarine Fan Bravo: 232 MMBO Gross Mean For personal use only 110km2 greater submarine Trap: Structural/Stratigraphic BRAVO: fan envelope Reservoir: Basal mound sandstones, DEPTH MAP • Av Por 15%; N:G 30% Top Seal: Seabee Fm slope fines Base Seal: Seabee
Slide 19: Icewine: Bravo - AVO Support
Project Icewine: Bravo - AVO Support Porous Sand and Possible Hydrocarbons For personal use only 19
Slide 20: Icewine: Lima Lead
Project Icewine: Lima Lead Seabee Formation Submarine Fan Lima: 488 MMBO Gross Mean For personal use only Trap: Structural/ stratigraphic on structural nose Reservoir: Submarine fan sandstones LIMA: • Avg Porosity 15%; Net to Gross 30% DEPTH MAP Top Seal: Slope basinal fines – condensed sequence Bas
Slide 21: Icewine: Lima Sands
Project Icewine: Lima Sands Comparison of Amplitude of Different Spectra For personal use only The Lima equivalent sands at Heavenly appear sub resolution with conventional processing on vintage and Icewine 2D seismic data However on adjustment of the spectrum, spectral decomposition can be used to
Slide 22: Icewine: Echo Lead
Project Icewine: Echo Lead Canning Formation Base of Slope Fan Echo: 162 MMBOE Gross Mean For personal use only Trap: Structural/Stratigraphic ECHO: 185km2 Canning submarine Requires updip pinchout or shale-out greater fan envelope Reservoir: Submarine fan sandstones DEPTH MAP • Avg Porosity 15%; Ne
Slide 23: Yukon Gold: New Acquisition
Yukon Gold: New Acquisition HIGHLIGHTS For personal use only Recent Acquisition of Existing Oil Discovery (subject to formal award in 2018) • Opportunistic (post 2017 lease expiry), low cost bid in improving oil price environment • 88E 100% ownership of ~15,520 acres through subsidiary Regenerate Al
Slide 24: Yukon Gold: Background
Yukon Gold: Background For personal use only • Yukon Gold #1 located on the YUKON GOLD eastern margin of the North Slope of LEASES Alaska, ~50 miles East of Prudhoe 15,520 acres Bay 88E: 100% • 120 MMbbls of recoverable oil reserves estimated (AEDC, 2015*) • Volumetric review / commercialisation str
Slide 25: North Slope Alaska: Strong Industry Interest Reflected by High Activity
North Slope Alaska: Strong Industry Interest Reflected by High Activity For personal use only Drilling on the Slope: 7- 9 wells planned this current Winter season 25
Slide 26: North Slope Summary
North Slope Summary For personal use only Project Icewine: Unconventional - HRZ • Flow-back clean up phase ongoing with only ~20% of frac fluid recovered vs target of >30% - recommence April/May 2018 with artificial lift • Results to date encouraging and consistent with early stage results from othe
Slide 27: Board and Key Management
Board and Key Management For personal use only Mr David Wall – Managing Director Dr Stephen Staley – Non-Executive Director 4 years experience in strategy and planning at Woodside 34 years of energy management and technical experience including Petroleum. 6 years experience in financial services wit
Slide 28: Contacts
Contacts For personal use only Managing Director: David Wall Brokers: dwall@88energy.com Australia Hartleys Ltd Registered Office: As Corporate Advisor: Mr Dale Bryan + 61 8 9268 2829 Level 2, 5 Ord St, West Perth WA 6005 United Kingdom Postal Address: Cenkos Securities Plc As Nominated Adviser and