If 88E kicks..., page-24

Something that has been largely overlooked here is the conventional potential, during drilling there was some really good updates 29/12/15 indicating that the conventional potential may be far better than anticipated. Keeping in mind that the conventional play is expected to have a break even price of $34/bbl vs current oil price around $36/bbl which means its already in the money.

Quotes from the December update definitely look promising.

"In addition to the unconventional HRZ play, a number of conventional reservoir targets were tested by the drilling of the Icewine#1 well with the following key highlights:

o Excellent reservoir was encountered over the Kuparuk sands interval from 11,262’ – 11,320’ with elevated gas readings over a 58 foot gross interval – a detailed petrophysical log interpretation is underway
o Preliminary log interpretation of the Kuparuk sand interval indicates porosities of up to 15% and good permeability
o The reservoir quality in this Kuparuk sand interval is substantially higher than anticipated, which is extremely positive for deeper conventional prospectivity on the Project Icewine acreage"

“Several gas kicks were experienced whilst drilling an interval of excellent reservoir quality between 11,262’-11,320’, with porosities up to 15% and good permeability. This is outstanding for sands at this depth and substantially better than anticipated. The implications for the conventional potential at this horizon across Project Icewine have been significantly high graded as a result.”

“Additionally, the intersection of high quality reservoir at depth in the Kuparuk sands is a major boost to the conventional potential at Project Icewine. Reservoir quality was always considered a key risk at this horizon and the recent observations from Icewine#1 have substantially mitigated this. These deeper sands complement the already prospective conventional horizons in the shallow Brookian sequence, as previously reported.”

“Conventional potential has been identified in both the shallower (Brookian) and deeper (Kuparuk) horizons; however, early analysis indicates no closure at this location, as expected. Despite this, the excellent reservoir quality and high hydrocarbon saturation has significantly high-graded the conventional potential across the acreage. This potential will be matured up by the potential acquisition of 3D seismic in the near term. The conventional horizons encountered in Icewine #1 were not delineated by 3D seismic.”

Also found this article which is focussed on the neighbours but has some really good info in the general area

http://www.geoexpro.com/articles/2013/09/alaska-north-slope-source-rocks-hold-promise