88 Energy announced that an independent estimate has shown a massive 293% increase in recoverable resource for HRZ shale at the Icewine project, located onshore North Slope of Alaska.
Independent resource estimator DeGolyer & MacNaughton (D&M) has increased recoverable liquids resource for HRZ to 1.4 billion barrels of oil equivalent.
The assessment also increased the probability of geologic chance of success to 60% from 40%.for the Icewine project. The estimated productive area is spread over 42% of the project’s total area.
"The assumptions used by D&M are largely consistent with the internal Joint Venture view, with the main difference related to how much of the total acreage position is likely to be productive, in the success case," the company said in a statement.
However, an internal assessment increased the resource estimate for HRZ share to 3.6bn barrels of oil equivalent, with a productive area of 70%.
88 Energy managing director Dave Wall said: "The large upgrade to the resource potential at Project Icewine highlights the unique leverage that a project with this possible magnitude provides to investors.
"We look forward to providing additional information related to the project as we continue to complete the current 2D seismic acquisition and mature plans for the Icewine 2H well."
In November 2014, 88 Energy had entered into a binding agreement with Burgundy Xploration (BEX) to acquire a significant working interest of 78% in the Project Icewine.
The company is in the process of acquiring an additional 174,240 acres of area for the project, which could take its possession of area to 272,242 acres.
The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5% royalty.