88 Energy has released a significant update to its South Prudhoe prospective resource estimates, revealing over 500 million barrels of oil and NGLs gross across multiple reservoirs on Alaska’s North Slope. The company is advancing well planning and farm-out talks targeting a 2027 drilling campaign.
- 507 million barrels gross prospective resources across five reservoirs
- Maiden estimates for Ivishak and Kuparuk formations
- 52,269-acre consolidated South Prudhoe acreage adjacent to major oil fields
- Farm-out discussions and Augusta multi-zone well planning underway
- Brookian formation offers substantial additional upside potential
Strategic Resource Update
88 Energy Limited (ASX: 88E) has delivered a major update to its prospective resource estimates for the South Prudhoe acreage on Alaska’s prolific North Slope. The consolidated landholding, spanning over 52,000 acres immediately south of the giant Prudhoe Bay and Kuparuk River oil fields, now boasts a combined unrisked best estimate of 507 million barrels of oil and natural gas liquids (NGLs) gross, or 422 million barrels net to 88 Energy after royalties.
This update notably includes maiden resource estimates for the Ivishak and Kuparuk formations, two of the region’s most productive conventional reservoirs. The Ivishak prospects alone carry an estimated best prospective resource of approximately 77 million barrels gross, while the Kuparuk prospects add nearly 50 million barrels. These formations lie adjacent to some of North America’s largest oil fields, offering a strategic advantage for potential development.
Multi-Zone Potential and Infrastructure Access
The South Prudhoe acreage is characterised by stacked reservoirs across multiple intervals, including the Brookian formation, which has been significantly re-evaluated to reveal an estimated best prospective resource of 439 million barrels gross. This layered prospectivity provides a compelling multi-zone development opportunity.
Importantly, all mapped prospects are covered by modern 3D seismic data, enhancing confidence in the structural definition and resource estimates. The acreage’s proximity to existing infrastructure, including the Trans-Alaska Pipeline System (TAPS), positions 88 Energy to potentially fast-track development with lower capital intensity compared to more remote projects.
Advancing Drilling Plans and Partnerships
88 Energy is actively progressing farm-out discussions and detailed well planning for the Augusta Prospect, a priority multi-zone target adjacent to the Hemi Springs State-1 discovery well. The company aims to spud the Augusta-1 well in the first quarter of 2027, targeting stacked reservoirs in the Ivishak, Kuparuk, and Brookian formations.
Farm-out efforts are focused on securing funding support while retaining meaningful exposure to the asset’s upside. Concurrently, 88 Energy is undertaking integrated economic and development screening to assess tie-back options and commercial thresholds, leveraging the strategic location and proven petroleum system.
Outlook and Next Steps
The company plans to fast-track remaining resource estimations, particularly in the North-West Hub where additional upside in the West Sak and Price Creek reservoirs is anticipated. There is also potential to reclassify resources associated with the Hemi Springs State-1 well as contingent resources, which would mark a significant step towards formal development planning.
While the resource estimates remain prospective and unrisked, the scale and quality of the South Prudhoe acreage position 88 Energy favourably within Alaska’s oil exploration landscape. The company’s methodical approach to appraisal and development planning underscores its commitment to unlocking value from this world-class petroleum system.
Bottom Line?
As 88 Energy advances towards drilling and farm-out milestones, South Prudhoe’s multi-zone potential could reshape its growth trajectory in Alaska’s oil sector.
Questions in the middle?
- What are the timelines and terms expected for the farm-out agreements to support drilling?
- How might regulatory approvals and final lease awards impact the acreage and resource base?
- What are the economic thresholds and development scenarios being considered for tie-back options?