GCI88 Energy expects positive results from flow testing of Hickory-1 well in Alaska
( ), an Alaska-focused hydrocarbon explorer, updated markets on its Hickory-1 well, part of 88 Energy's Project Phoenix (formerly known as Icewine East) on Alaska's North Slope.
88 Energy said flow testing was scheduled for multiple zones in Hickory-1, all expected to flow based on reservoir characteristics. The flow testing programme is scheduled to begin "as early as possible" during the 2023/24 Alaskan winter operational season. Permitting and planning has already commenced and rig selection is expected to be concluded imminently.
In the meantime, post-well analysis of cores, mud gas isotubes, and wireline data is ongoing at Hickory-1. Initial results have been encouraging with good correlation to migration and thermal maturity models for Project Phoenix.
In April 2023, 88 Energy confirmed the presence of multiple hydrocarbon bearing pay zones across all pre-drill targets, as well as the identification of a new Upper SFS reservoir. 88 Energy said its pre-drill expectations were "met or exceeded" on reservoir quality, with higher than expected porosity and thickness.
Estimated net pay calculated from wireline data was approx. 450 ft over all pay zones, and gross pay was estimated to be over 2,000 ft. Average total porosity across all pay zones was 9-12% and key zones identified for potential testing in the Upper and Lower SFS had 11-16% total porosity.
Other wells in the immediate vicinity to the north have flowed and recovered light oil to surface from all the SMD, SFS and BFF reservoirs, which has further derisked future development.
Moreover, Hickory-1 is positioned adjacent to the Trans Alaskan Oil Pipeline route and the Dalton Highway, delivering an immediate potential export route, speeding-up future development activities, and keeping costs low.
In March 2023, 88 Energy completed an oversubscribed A$17.5m (£10.1m) placing, funding its activities for at least the next 12 months. Hickory-1's final cost is expected to be lower than the previously drilled Icewine-1 and 2 wells on the Project Phoenix acreage at c. US$13.5m gross.
Alongside Hickory-1, 88 Energy has an extensive exploration portfolio in Alaska comprising around 440k net acres, including the recently acquired Project Leonis acreage, which has similar characteristics. Alongside the fundraising, cash flows from its conventional Texas production are available to reinvest in high-impact exploration.
Follow News & Updates from 88 Energy:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.