88 Energy issues 2024 annual report, advances Phoenix, Leonis
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Kay Cashman Petroleum News
Throughout 2024, Australia-based 88 Energy Limited's efforts centered on advancing key projects, optimizing its portfolio, and positioning the company to unlock future value, it said in its 2024 annual report released March 4. The period ended Dec. 31, 2024.
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The successful flow test at the Hickory-1 well on Alaska's central North Slope marked a key moment for the company's Project Phoenix. This milestone, 88 Energy said, validated the potential of multiple primary and secondary reservoirs, confirming the presence of mobile hydrocarbons and achieving natural oil flow (no nitrogen lift) to surface, an indicator of commercial potential.
The company also monitored regional activity, including Pantheon Resources PLC's Megrez-1 extended well test targeting the Ahpun Eastern Topset reservoir. The anticipated Q1 CY25 results could provide valuable insights into the area's broader commercialization potential.
2024 also saw progress at 88 Energy's Leonis Project, where the completion of an independent certified resource estimate highlighted the potential of the Upper Schrader Bluff reservoir. This paved the way for the launch of a formal farm-out process aimed at accelerating exploration via a planned exploration well, the Tiri-1.
In December, 88 Energy was the successful bidder on four additional leases, covering approximately 10,203 acres. This acreage is west of the Dalton Highway south of Prudhoe. Once the leases are officially awarded by the state of Alaska, the additional acreage will grow the Leonis Project's footprint to more than 35,000 contiguous acres.
These leases were targeted based on additional prospectivity mapped within the deeper Canning Formation reservoir interval, enhancing Leonis' position as a highly prospective, multi-zone opportunity, the company said.
Project Phoenix Project Phoenix is an oil-bearing conventional reservoir play identified during the drilling and logging of Icewine-1 and Hickory-1 and adjacent offset drilling and testing. Project Phoenix is strategically located on the Dalton Highway with the Trans-Alaska Pipeline System bisecting the acreage.
88 Energy advanced discussions with Phoenix joint venture partner Burgundy Xploration LLC during the year. In February 2025, the company and Burgundy entered into binding terms for a farm-out participation agreement in relation to Project Phoenix. Under the agreement, Burgundy will fully fund up to US$39 million of Project Phoenix's total gross future work program costs in exchange for up to an additional 50% working interest in Project Phoenix from 88 Energy, through its wholly owned subsidiary, Accumulate Energy Alaska Inc. This provides a clear funding avenue to advance Project Phoenix towards a final development decision via a two-phase farm-in arrangement.
➢ Phase 1: Burgundy to fund US$29 million for CY25/26 work program, including drilling of a horizontal well and production testing scheduled for H1 CY26
➢ Phase 2: Upon Phase 1 success; Burgundy to fund up to US$10 million for an additional well or other CAPEX program.
Project Leonis In June 2024, 88 Energy reported a maiden internal net mean prospective resource estimate of 381 million barrels of recoverable oil at the Upper Schrader Bluff formation in Project Leonis. This followed a review of an extensive data suite that included 3D and 2D seismic data, well logs from Hemi Springs Unit-3 and Hailstorm-1, as well as nearby wells adjacent to the Project Leonis acreage, along with extensive petrophysical analysis and mapping.
The Upper Schrader Bluff formation is the same proven producing zone as nearby Polaris, Orion and West Sak oil fields to the northwest.
Subsequent reprocessing and interpretation of 3D seismic data identified a high-energy Canning formation top-of-slope turbidite sequence, with analogues in the productive Tabasco field just 23 miles to the northwest. Encouragingly, the Tabasco field outline bears a remarkable resemblance to the Canning at Leonis, said 88 Energy.
In January 2025, the company reported a new prospective resource for the Canning with a total estimated net mean prospective resource of 283 million barrels recoverable from the Canning formation.
Project Leonis is now a multi-reservoir opportunity of scale with a combined internal gross mean prospective resource estimate across the Canning and Upper Schrader Bluff prospects of 798 million barrels, 88 Energy said.
--KAY CASHMAN
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