88 Energy has reinforced its position on Alaska’s North Slope after securing four new, highly promising petroleum leases adjoining 10 blocks it already holds at its Project Leonis grounds, increasing the landholding by 30 per cent to 144 square kilometres.
The strategic move follows 88 Energy’s analysis of seismic data which revealed significant oil potential at the new prospect, dubbed the Canning Formation which the company says contains a sizable target up to 102m thick.
The company kicked off a quantitative interpretation study in November using previously collected and reprocessed Storms 3D seismic data, in an effort to better identify the new prospect’s sweet spots and define its anomalous features.
When the results of the study are received early next year, 88 Energy plans to finalise potential future drilling locations beyond its exploration plans for 2025 and 2026.
88 Energy managing director Ashley Gilbert said: “The new leases were targeted following identification of additional prospectivity within the Canning Formation, transforming Project Leonis into a multi-zone exploration opportunity of considerable scale. The company is targeting a partial farm-down before any future potential drill event currently targeted for 1H 2026.”
Historic data has already shined a light on the Project Leonis’ potential.
Its Hemi Springs Unit 3 well, drilled in 1985 which sits on the company’s existing Leonis blocks, is focused on deeper reservoirs but lacked modern seismic data, causing it to miss low-resistivity oil pay zones.
A recent re-analysis of petrophysical data has now confirmed the presence of net oil pay in the Canning Formation with oil shows aligning well with widespread mapped potential in the area.
Advances in understanding low-resistivity net oil pay have led to significant discoveries in Alaska’s North Slope, including the Willow and Pikka fields.
Similarly, 88 Energy’s review of older wells resulted in the successful drilling and testing of Hickory-1 at its Project Phoenix.
88 Energy has hired an oil and gas exploration services company based in Anchorage, Alaska, to begin planning and permitting for the company’s planned 2026 Tiri-1 exploration well, which will target both the shallower Upper Shrader Bluff and the Canning reservoir zones.
However, progress of the well is also dependent on 88 Energy first finding a farm-out partner. London-based LAB Energy Advisors has been brought in to lead an expanded effort to attract the necessary new investment.
Project Leonis sits 40km north of 88 Energy’s other enormous Alaskan interests, Project Phoenix, which the company has been operating since 2015 and where it made the large-scale Hickory-1 oil discovery in 2023.
Independent consultant ERCE subsequently upgraded its 2C prospective resource estimate at the site to an eye-popping 378 million barrels of oil equivalent (MMboe).
88 Energy’s share of the Hickory-1 discovery is a remarkable 239MMboe.
Project Leonis is shaping up to be another game-changing opportunity for 88 Energy, blending a prime location with cutting-edge seismic re-evaluation and some impressive multi-zone potential.
The project’s economics will also be helped by its proximity to significant infrastructure, including the Trans-Alaska pipeline and the Dalton Highway, which offers logistical advantages.
The addition of four new leases, alongside 88 Energy’s efforts to attract industry partnerships, may mean Project Leonis is poised to join Project Phoenix as another standout asset in the company’s portfolio.
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By James Pearson
