Peregrine

Project Overview

• Project Peregrine is an oil exploration and development project managed by 88 Energy Ltd. The project's acreage was acquired through an off-market takeover of XCD Energy Ltd in August 2020.

Location and Geology

• The project is located in a proven petroleum province, specifically in the Nanushuk and Torok formations.
• It includes multiple independent drill-ready targets within the Nanushuk Topset and Torok Bottomset formations.

Exploration and Drilling

• Key exploration activities include the Merlin-1 and Merlin-2 wells, drilled in Q1 2021 and Q1 2022, respectively. These wells confirmed the existence of a petroleum system and provided evidence of hydrocarbons in all three primary targets.
• Biomarker and carbon isotope analyses indicated the presence of Hue/HRZ type oil, with vitrinite reflectance values between 0.7 and 1% Ro, confirming the oil-prone nature of the acreage.

Prospective Resources

• The project has estimated prospective resources of approximately 2,423 MMBO (million barrels of oil) on an unrisked net mean basis.
• Resources are split across three prospects: Merlin (Nanushuk Topset), Harrier (Nanushuk Topsets), and Harrier Deep (Torok Bottomsets).

Targets and Future Activities

• Independent drill-ready targets remain untested, including Harrier-1 and Merlin-1A.
• Recent independent basin modelling studies and abundant oil shows at Merlin-1 and 2 are encouraging for the untested Harrier prospects.
• The project is also influenced by nearby activities, such as Conoco’s Willow development and potential future exploration activities by Conoco and Armstrong, which may offer opportunities for cost-sharing arrangements.

Regulatory and Development Aspects

• The Biden Administration's approval of Conoco’s Willow development, located north of the Harrier prospect, is a significant factor in the regional oil and gas landscape.
• 88 Energy is assessing possible forward work programs, subject to potential farm-out arrangements.

Conclusion

Project Peregrine, managed by 88 Energy Ltd, is a significant oil exploration and development project with substantial prospective resources and multiple drill-ready targets. The project's progress and future activities are closely tied to the broader oil and gas developments in the region.