Can 88 Energy’s New North Slope Leases Deliver Low-Cost Oil Production?
88 Energy Limited has expanded its North Slope footprint with 14 new leases near the Prudhoe Bay oilfield, targeting high-quality Ivishak reservoirs and underexplored areas east of the Trans Alaska Pipeline. The company plans seismic reprocessing and a multi-zone exploration well in 2026.
- 14 new leases totaling ~34,560 acres secured on Alaska’s North Slope
- South Prudhoe leases target proven Ivishak sandstone reservoirs near Prudhoe Bay infrastructure
- Kad River East leases open underexplored frontier east of Trans Alaska Pipeline
- Plans for 3D seismic licensing, reprocessing, and multi-zone exploration well in 2026
- Dual hub development concept aims for low-cost tie-backs to existing pipeline infrastructure
Strategic Expansion Adjacent to North America’s Largest Oilfield
88 Energy Limited (ASX, 88E) has significantly broadened its Alaskan North Slope presence by securing 14 new oil and gas leases covering approximately 34,560 acres. These leases, awarded through the 2025 North Slope Areawide Oil and Gas Lease Sale, position the company adjacent to the Prudhoe Bay Unit, the largest oilfield in North America, and complement its existing Project Leonis acreage.
The new leases are split between two key areas, South Prudhoe, with seven leases targeting the high-quality Ivishak sandstone formation immediately south of Prudhoe Bay, and Kad River East, with seven leases in a historically underexplored region east of the Trans Alaska Pipeline System (TAPS). This dual-area acquisition aligns with 88 Energy’s infrastructure-led, data-driven exploration strategy, emphasizing proximity to existing pipelines and facilities to enable cost-effective development.
High-Quality Reservoirs and Low-Risk Prospects
The Ivishak Formation, a proven reservoir that has produced over 13 billion barrels from Prudhoe Bay, offers excellent reservoir characteristics including around 20% porosity and permeability between 50 and 100 millidarcies. Multiple fault-block closures identified via modern 3D seismic data and supported by offset well results provide a suite of drill-ready targets. Notably, prospects such as Ivishak Prospect A near the historical Hemi Springs well and Prospect M in the Leonis area exhibit robust structural integrity and commercial potential.
These prospects benefit from proximity to existing infrastructure, enabling potential early tie-backs to the Prudhoe Bay and Kuparuk River Units or direct connections to TAPS. The company’s conceptual dual hub development plan envisions modular processing facilities and horizontal wells to accelerate first oil with relatively low capital expenditure.
Exploring Underexplored Frontiers East of TAPS
The Kad River East leases represent a strategic entry into a less explored frontier with promising multi-reservoir petroleum systems. Historical well data and upcoming 3D seismic licensing in early 2026 are expected to shed light on multiple reservoir targets including Ivishak, Seabee, and Canning formations. This area adds longer-term upside potential to 88 Energy’s portfolio and complements its focus on near-term value generation in South Prudhoe.
Next Steps and Market Positioning
Looking ahead, 88 Energy plans to license and reprocess key 3D seismic datasets in 2026, integrate historical well data, and advance farm-out discussions to fund a multi-zone exploration well targeting Ivishak and shallower reservoirs. The company has also relinquished less prospective acreage to concentrate capital and technical resources on these high-potential assets.
This strategic expansion comes amid renewed exploration momentum on the North Slope, supported by federal and state policy initiatives, recent discoveries by peers, and infrastructure developments such as the nearing completion of Santos’ Pikka Phase 1 project and progress on the Alaska LNG pipeline. Together, these factors underscore the growing significance of the region and the commercial promise of 88 Energy’s expanded portfolio.
Bottom Line?
88 Energy’s expanded North Slope acreage and focused exploration plans set the stage for potential near-term value catalysts and longer-term growth.
Questions in the middle?
- What are the timelines and funding prospects for the planned multi-zone exploration well?
- How will seismic data reprocessing refine resource estimates and influence farm-out negotiations?
- What are the commercial viability and development costs associated with the dual hub tie-back concept?
