88 Energy Estimates 283 MMbbls at Canning, Total Project Leonis Resources Near 800 MMbbls
88 Energy Limited announces a maiden internal Prospective Resource estimate of 283 million barrels of oil for its Canning Prospect at Project Leonis, Alaska, with plans to drill the Tiri-1 exploration well targeting multiple reservoirs in 2026.
- Maiden Prospective Resource estimate of 283 million barrels at Canning Prospect
- Combined gross mean Prospective Resource of 798 million barrels across Canning and USB Prospects
- Tiri-1 exploration well planned for first half of 2026 targeting both prospects
- Project Leonis strategically located near Trans Alaska Pipeline System and Deadhorse hub
- Active farm-out process underway to secure partners and share drilling costs
A Significant New Resource Estimate for Project Leonis
88 Energy Limited (ASX:88E) has announced a maiden internal Prospective Resource estimate for the Canning Prospect within its Project Leonis acreage on Alaska's North Slope. The company estimates an unrisked net mean prospective resource of 283 million barrels of oil (MMbbls) recoverable from the Canning Formation, marking a material addition to its portfolio.
This estimate complements the existing Upper Schrader Bluff (USB) Prospect, with combined gross mean prospective resources across both prospects now reaching 798 MMbbls. Net to 88 Energy, this equates to 664 MMbbls, underscoring Project Leonis as a multi-reservoir opportunity of considerable scale.
Strategic Location and Advanced Seismic Techniques
Project Leonis benefits from its proximity to key infrastructure, notably the Trans Alaska Pipeline System (TAPS) and the Deadhorse services hub, which significantly enhances the commercial potential of any future development. The company’s exploration strategy leverages advanced seismic technologies, including rock physics, AVO (Amplitude Versus Offset) analysis, and seismic inversion, to identify hydrocarbon signatures and sweet spots within the reservoirs.
These techniques have been instrumental in recent North Slope successes by major operators and were pivotal in 88 Energy’s Hickory-1 discovery at Project Phoenix. The Canning Prospect itself features a thick turbidite reservoir succession up to 336 feet thick, covering approximately 43 square kilometers, with encouraging reservoir quality indicated by porosities up to 28% observed in offset wells.
Upcoming Drilling and Farm-Out Plans
The company is advancing plans for the Tiri-1 exploration well, currently scheduled for the first half of calendar year 2026. This well will be optimally positioned to test both the Canning and USB Prospects, offering shareholders exposure to a multi-zone exploration opportunity. Drilling is contingent on securing a farm-out partner, with 88 Energy retaining 100% working interest and aiming to secure a large proportionate carry on the well cost through the active farm-out process managed by Bannister Energy Advisors.
Recent lease acquisitions in December 2024 expanded Project Leonis’ footprint to approximately 35,634 contiguous acres, further underpinning its status as a cornerstone asset. The leases carry a 16.67% state royalty and have a ten-year term, with formal award expected in the first half of 2025.
Technical and Commercial Outlook
88 Energy’s resource estimates are based on probabilistic Monte Carlo analysis integrating petrophysical data and reprocessed 3D seismic interpretation. While the estimates remain unrisked and subject to discovery and development risks, the company assesses the chance of oil presence at 100% and considers the chance of development probable given the strategic location and infrastructure access.
Managing Director Ashley Gilbert highlighted the significance of the maiden estimate and the multi-reservoir potential, emphasizing the company’s focus on advancing the Tiri-1 well and securing funding for a horizontal well test at Project Phoenix. The integration of historical data with modern seismic interpretation has been key to unlocking this opportunity.
Bottom Line?
As 88 Energy prepares to drill the Tiri-1 well in 2026, the market will watch closely for confirmation of this substantial resource potential and the success of its farm-out strategy.
Questions in the middle?
- Will 88 Energy secure a farm-out partner to share costs and risks for the Tiri-1 well?
- How will the results from Tiri-1 influence the valuation and development timeline of Project Leonis?
- What are the potential challenges in converting these unrisked prospective resources into reserves?
