Alaska’s North Slope basin has a long history of successful oil discoveries — recent discoveries have included the two largest conventional oil discoveries onshore North America in over 40 years.
It is the location of North America’s largest current oil field, Prudhoe Bay, which originally contained over 25 billion barrels of oil. Furthermore, the basin is surrounded by several other large oilfields, having together produced over 17 billion barrels of oil since 1977 through the Trans Alaska Pipeline System.
Oil exploration junior, 88 Energy Ltd (AIM:88E | ASX:88E) has recently expanded its position on the North Slope, acquiring XCD Energy and its 135,000 acre Project Peregrine.
88 Energy now has net half a billion acres of exploration ground across multiple world class assets with multi-billion barrel discovery potential on the North Slope, with Peregrine joining Project Icewine and the Yukon Leases in 88 energy’s portfolio.
Project Peregrine comes with three onshore prospects already identified at the project — Merlin (Nanushuk), Harrier (Nanushuk), Harrier Deep (Torok).
Combined, these prospects have a mean unrisked recoverable prospective resource of 1.6 billion barrels of oil, as per an independent report generated by ERC Equipoise.
To the north and south of Project Peregrine sit major oil discoveries.
Willow, located to the north of Peregrine, is a 0.75 billion barrel discovery made by oil major ConocoPhillips (NYSE: COP).
A recent well drilled by ConocoPhillips, just 15 kilometres from Project Peregrine, encountered hydrocarbons at its Harpoon prospect which is interpreted to be directly on trend and analogous to the Harrier prospect at Peregrine.
The Peregrine Project also lies directly to the north of the Umiat oil accumulation that’s estimated to have greater than 1.0 billion barrels of oil in place.