Conventional Drills - Icewine

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Stephen Staley:
Is this working? Can you hear me? It is working. Very good. I'm just going to go back a few slides, folks, to that one. I'm going to talk about the conventional. I'm the one who's got a tie on, so that's what you'd expect, I suppose. We're down here. Obviously, we've seen this slide before. Dave mentioned the green blobs here. Now, back in 2013, the US Geological Survey estimated that there was about 2.1 billion barrels to come out of what's called Brookian or the Brookian system, which is the conventional here. It extends into our acreage. Since then in those very few years with these three discoveries. Caelus there in the northwest, Armstrong and Repsol here, and ConocoPhillips earlier this year, they've already almost doubled that estimate. There's an awful lot of potential here. They haven't, by any means, found everything there is to find.

Way down here, the system extends down here. Tarm/Meltwater here. It's an existing field. That's one of our analogs for what we've got out here and across our acreage in terms of potential conventional play. Very exciting on the conventional side as well. I'll take it forward to where we were before. This now is a map of the acreage. The green blobs are, and you've probably seen these, they've been released. These are the conventional leads that we found. We can't call them prospects yet. We have more work to do on them before we can call them prospects. Very exciting.

You saw Alpha. If you came to the last one of these, we show you a little graphic of Alpha. We've moved further west. This is based on the 2D seismic that we acquired early last year, and processed and interpreted and we continued to work on. As you can probably see from this, we've got stacked plays. Here, we've got India/Juliet, et cetera. Over in the west, picked out just Bravo. We've also got Charlie. Charlie and Bravo overlap. Each of those is quite significant. We got well control over in the west here with Malbec, Smilodon, and Wolfbutton wells.

What do we think we've got? In broad terms, we've done an initial pass on this. Net to us, net to 88, probably about 1.14 billion, about one-and-a-half altogether billion barrels. Very significant. It's not quite as big as the unconventional, but by anybody's terms, that's a very large number to have sitting in your acreage. Now, this requires more work. We need to build in to our analysis, the data from the wells that we've got already over in the west there. We'll be working up what's the right way to approach this, where do we want to drill this.

If we have a look at this list here, then from east to west and we group them, you can see the size of what we've got. Alpha, we estimate in total about 118 million barrels. Then, through the center, so pretty big ones as well. There's Golf and India. As we get to the west, if you look at Bravo and Charlie, the size of those both net to 88 Energy, over 200 million barrels each. There's a potential there to drill both with one well. Also in the west, one can keep going deeper with a single well and also get down to the HRZ. You got a lot of potential for getting a lot value out of a single well. We can start to do more things with the data. We can pull out seismic attributes and start to work on that, especially in the east where we've got access already to some of the 3D data. I think in summary, I'd say very exciting and watch the space. Dave?
London Presentation Feb, 2017

Premier Oil PLC has signed a Sale and Purchase Agreement with 88 Energy and Burgundy Xploration LLC to farm-in for a 60 per cent interest in Area A of their conventional Project Icewine acreage in the proven Alaska North Slope basin. This acreage lies close to the Trans-Alaska Pipeline and the Dalton Highway. The transaction provides Premier with a cost effective entry point into an emerging play, following recent advances in drilling and completion techniques, within a proven oil province and one which has the potential to deliver significant organic growth opportunities for the Group.

Exclusivity agreement executed by 88 Energy and Burgundy Xploration, LLC (together, the “JV Parties”) with preferred bidder to facilitate near term operational activity whilst final terms are agreed on the proposed farmout agreement:
o Exclusivity granted by the JV Parties until 31st August 2019, with customary exclusivity undertakings;
o US$500,000 payment (the “Exclusivity Fee”) by the preferred bidder to the JV Parties to facilitate incurring of initial agreed costs associated with the 2020 drilling program;
o Exclusivity Fee non-refundable unless the farmout agreement is not finalised owing to an act or omission of the JV Parties.

• Farminee internal approvals complete, including Board sign-off
• Farm-out deal now subject to: o execution of closing documents o standard conditions precedent, mainly related to transfer of working interests
• Well planning and permitting required for 2020 drilling now ramping up

condition precedent
n. 1) in a contract, an event which must take place before a party to a contract must perform or do their part. 2) in a deed to real property, an event which has to occur before the title (or other right) to the property will actually be in the name (vest) of the party receiving title. Examples: if the ship makes it to port, the buyer agrees to pay for the freight on the ship and unload it; when daughter Gracella marries she shall then have full title to the property.


Project Icewine Conventional: farm-out process continues to progress with preferred bidder

Third party due diligence process now largely complete

Final decision on approval scheduled for June


• Multiple high-quality parties active in conventional dataroom Deadline for bids extended due to request o Deal now targeted for 1Q 2019
• Initial HRZ review by Baker Hughes encouraging o Additional value add analysis now underway ahead of finalising farm-out package
• Yukon Leases - 3D seismic processing continues with inversion now underway
• Western Leases – Winx-1 exploration well on schedule for February 2019 spud


**Conventional Portfolio Update


Icewine 3D seismic inversion substantially complete for both shallow and deep horizons
Discrete geobodies (containers) are now mapped in three dimensions in the Schrader (topset) and Torok (basin floor fan) horizons
Increase in gross mean prospective resource to 2,896 MMBO (2,211 MMBO net to 88E)
Updated rock trending models combined with 3D seismic inversion products highlights better than expected potential reservoir quality within the Torok
Farm-out process continues as planned, with deal targeted prior to year-end 2018


USGS North Slope Update


Agreements executed for additional 45,239 acres net to 88 Energy

New Investor Presentation

• Nitrogen lift commenced at Icewine#2
Yukon Gold and Western Margin leases formally awarded


Project Icewine – Icewine 3D
The Icewine 3D seismic survey, approximately 450 km2 in area and covering several large leads identified on 2D seismic, was completed on the 28th March – on schedule and within budget. Infield quality control, overseen by head office, has ensured that the data acquired is as clean as possible to enable fast track processing. Processing of shipments of data from the initial areas of the acquisition has commenced and early products, namely post stack migration, will be available in June 2018. This will allow confirmatory mapping of the stratigraphic / structural elements of the leads already identified in the conventional prospectivity portfolio.


3D commenced on Icewine


Bravo Charlie Permit Approval

**31/01/18 Investor Presentation*

12/01/18 3D Permit Approval

15/12/2017 ICEWINE 3D Contract award

NEWS 07122017

LST ADL Estimated Acres Bid Status Bidder Group Member Ownership Interest Bid per Acre
NS0369A 393591 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0369B 393592 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0369C 393593 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0369D 393594 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0370B 393595 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0370D 393596 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0371B 393597 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0371D 393598 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0372A 393599 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0372B 393600 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0372C 393601 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63
NS0372D 393602 1,440.00 Accepted ACCUMULATE ENERGY ALASKA, INC. 100.000000% $27.63

27/11/2017 Latest Presentation Nov, 2017

Permit Application 02/11/2017

Project Milestone Proposed Start Date Proposed End Date
1. Conduct Field Studies, Project Planning & Design and Project Permitting 7/14/2017 10/1/2017
Inspect/survey Main TWR alignment, TWR Spur alignments and ice pads,
sound potential water sources, and install thermistors
8/13/2017 9/1/2017
3. Pre-pack all TWR alignments and pad locations 11/1/2017 12/15/2017
4. Construct Main TWR, TWR Spurs and ice pads 12/15/2017 1/1/2018
5. Mobilize drill rig, camp and support operations 1/1/2018 1/21/2018
6. Drill & test Bravo #1 (testing & demob may be concurrent with Charlie #1) 1/14/2018 4/30/2018
7. Drill & test Charlie #1 (testing & demob may be concurrent with Bravo #1) 2/22/2018 4/30/2018
8. Demobilize drill rig, test equipment, camp and support operations 5/1/2018 5/14/2018
9. Cleanup, remediate & rehabilitate TWR alignments & ice pad locations 7/14/2018 9/1/2018
10. Enter Milestone. Enter Date. Enter Date.

Iceroad Construction
This high pressure spray pump is used for building ice pads faster than ever before. The way this unit works is it pumps a large amount of water at high pressure into the air about 100 feet up, then as it falls back towards the ice it goes through rapid cooling from the ambient air being -30 to -40

Iceroad Permit Application Oct, 2017

Accumulate Energy Alaska Inc., the local operating company for Australia-based 88 Energy, has begun permitting for two winter exploration wells - Bravo 1 and Charlie 1. The company has drilled two Icewine wells from the Franklin Bluffs gravel pad south of Deadhorse and adjacent to the Dalton Highway, and is testing Icewine 2. Because the existing gravel pad is accessible year-round, that work did not require ice roads or ice pads.

The new wells will be 22 to 25 miles west of the Franklin Bluff gravel pad, Accumulate said in an application to the Alaska Department of Environmental Conservation for an update its oil discharge prevention and contingency plan.

Bravo 1 and Charlie 1, planned for winter 2018, will be drilled from ice pads accessed via a tundra winter ice road, and will be drilled “to further evaluate the opportunity to explore for additional oil deposits within the Accumulate lease block,” the company said.

Plans for 2018 drilling
Accumulate said in its project overview that Bravo 1 and Charlie 1 are targeting conventional oil deposits in the company’s western play fairway some 39 miles south of existing North Slope development.
The company said it will construct and operate infrastructure to drill the two exploration wells, including construction, operation and maintenance of ice roads and pads.

Field studies are planned for late June through mid-September, with installation of thermistors from July 1 through mid- September. Staking and pre-packing of ice roads and pads will begin in mid- November and run through the first of the year; construction of ice roads and pads will begin in mid-December and run through Jan. 21.

Mobilizing the drill rig, camp and support operations will begin Jan. 21 and run through the end of January.

Drilling and testing the Bravo 1 well is planned for Feb. 1 through April 14; drilling and testing the Charlie 1 well is scheduled for March 1 through April 14, with demobilizing the drill rig, test, camp and support operations scheduled for April 14 through April 24, with summer stick picking and tundra remediation from July 1 through Sept. 15.

The tundra winter ice road will be constructed starting from mile post 386.5 of the Dalton Highway to the proposed Bravo ice pad and then an access road will be constructed from the Bravo pad to the proposed Charlie pad.
Accumulate said the proposed wells are some 22 to 25 miles west of the Franklin Bluffs pad. A map included in the DEC application shows the ice road running southwest from the Dalton Highway to the Bravo pad and then northwest to the Charlie pad.

The cross country ice road is estimated at 23.2 miles, with 14 lakes and two gravel pits to be accessed for water and ice chips. The 500-by-500 foot Bravo had will be at the southern terminus of the ice road; a 4.7-mile long access ice road will extend west then north from the Bravo pad to the Charlie pad, which will also be a 500-by-500-foot pad.

Accumulate said the ice roads will be built to accommodate drill rig moves, with pre-packing requested prior to official tundra opening to drive frost down and preserve early snow.

The company also said that where ice roads cross established subsistence trails they will be constructed to provide a smooth transition to ensure subsistence trail users have safe passage.

Accumulate said both wells will be drilled to a depth of some 11,000 feet to test conventional objectives within the Seabee formation.
A mobile land drilling rig similar to the Arctic Fox will be used, with the same rig drilling both wells.

The plan is to test and hydraulically fracture both wells, and Accumulate said the wells may include laterals, sidetracks or additional penetrations from the same exploration pad. Each well involves a vertical hole to about 10,000 feet, with measure while drilling, log while drilling and wireline conducted in the open hold, along with rotary sidewall coring and repeat formation tester fluid sampling, the company said.

Phase II of the programs would include hydraulic stimulation and flow-back testing of prospective intervals to evaluate reservoir production.

The Bravo wells will be a tract operation in Alaska Division of Lands leases 393048, 393049, 393058 and 393059. The Charlie well will be in ADL leases 393043, 393044, 393052 and 393054.

All of the tracts are owned 77.5 percent by Accumulate and 22.5 percent by Burgundy Xploration, per a November 2014 agreement between the companies whereby 88 Energy acquired an 87.5 percent working interest, reduced to 77.5 percent on spud of the first well. Kristen Nelson Petroleum News


Oil Spill Plan Application August 2017

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