88 Energy set to assess 647 million barrels of prospective oil resources in Hickory-1 flow test
() , an Alaska-focused hydrocarbon explorer, updated markets on its upcoming flow testing programme at the Hickory-1 well, part of 88 Energy's flagship Project Phoenix on Alaska's North Slope.
Hickory-1's flow test aims to assess 647 million barrels of prospective oil resources. 88 Energy said the mapping of the recently identified Upper Slope Fan System (SFS) had been completed, revealing a reservoir zone more laterally extensive than previously thought. Resources in this zone have not yet been estimated and are additional to the existing pre-drill estimate.
The hydrocarbon explorer further clarified that stimulation and flow test modelling for each of Hickory-1's target intervals has been completed, and AAO's Rig-111 has been secured for the flow test, with long-lead flow test items also underway. Planning and permitting for the flow test remains on schedule with operations set to commence in Q1 2024.
View from Vox
88 Energy's flow testing programme at Hickory-1 is proceeding as planned, and still expected in the 2023/24 Alaskan winter operational season. The highlight of today's update was the completed mapping of the newly identified Upper Slope Fan System across the Project Phoenix acreage, showing the reservoir to be more extensive than originally mapped, correlating over 7km to strong shows in the Icewine-1 well:
Mapping of the Upper SFS reservoir correlating to strong shows in the Icewine-1 well
Investors should look forward to resources in the Upper SFS reservoir being assessed and added to 88 Energy's resource estimate for Hickory-1. The well is currently targeting 647 million barrels of oil across several pay zones and 88 Energy says the quality and strength of shows recorded during the drilling and logging of Hickory-1 was among "the best the company has witnessed to date". The execution of the rig contract with AAO was another important step toward quantifying the prospectivity of the well.
88 Energy is optimistic about flow test results from Hickory-1, as its northern neighbor on Alaska's North Slope, Pantheon Resources, recently announced a significant, third party estimated 2C contingent resource for the Lower Basin Floor Fan reservoir - one of the deepest hydrocarbon-bearing pay zones intersected by Hickory-1. 88 Energy plans to flow test this reservoir, along with its primary, SMD, Upper SFS and SFS targets.
88 Energy's portfolio continues to show promise and a recent A$3.3m fundraise should keep exploration activities on schedule. Besides Project Phoenix, the company is developing its newly acquired Project Leonis on Alaska's North Slope that is targeting a maiden resource estimate by the end of 2023, to be followed by a farm-out process to help fund future drilling in 2024/25. Additionally, at its recently expanded Project Longhorn in Texas, 88 Energy is planning 2 new wells and workovers to grow production. These activities are expected in H2 2023.
Overall, 88 Energy is well-funded for at least another 12 months and progressing at pace through its work programmes, expected to yield multiple milestones over the next 9 months. Namely, these are the planned flow testing of the Hickory-1 well at Project Phoenix in Alaska, planned development wells in Texas, and planned permitting activities associated with exploration drilling at Project Leonis in Alaska.
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.