REG - 88 Energy Limited - Hickory-1 Pre-Flow Test Operations on Track

88 EnergyAnnouncement

05/02/2024 07:00

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RNS Number : 0044C  88 Energy Limited  05 February 2024

This announcement contains inside information

 

 

5 February 2024

 

 

88 Energy Limited

Hickory-1 Pre-Flow Test Operations on Track

Highlights

·    Flow test permitting completed with the approval of the AOGCC frac
sundry permit received.

·    Operations commenced with rig commissioning and ice pad construction
underway.

·    Hickory-1 flow test operations on track with mobilisation of the All
American Rig-111 and operations equipment scheduled for mid-February 2024.

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to report that the Hickory-1 well ice pad construction has commenced
and that pre-flow test operations are on schedule, with all requisite permits
and approvals received from the relevant authorities including the recently
received Alaska Oil and Gas Conservation Commission (AOGCC) frac sundry
permit. The Hickory-1 well is located within 88 Energy's Project Phoenix
acreage, directly adjacent to the Trans-Alaska Pipeline System and the Dalton
Highway.

Mobilisation of All American Rig-111 to the Hickory-1 well location is
scheduled to commence mid-February 2024, together with equipment and services
relating to the well flow testing operations. The Hickory-1 program remains on
track for commencement of flow testing operations shortly after mobilisation
of the rig is completed.

Testing operations will focus on the two primary targets, the SFS and the SMD
zones. These two zones possess, in aggregate, a multi-hundred million barrel
oil prospective resource (mean, unrisked)(1,2,3).

The Upper SFS reservoir is set to be flow tested first. This zone has not
previously been flow tested at Project Phoenix or on adjacent acreage. This
will then be followed by targeted testing of the SMD-B reservoir.

Each zone is set to be independently isolated, stimulated and flowed to
surface using nitrogen lift to assist in an efficient clean-up of the well.
Each of the two planned flow tests is scheduled to take approximately ten days
to complete, with perforation, completion-running and stimulation expected to
take four days, followed by a clean-up and flow period of up to four days and
a pressure build up and downhole fluid sampling program of up to 2 days.

The Company will provide a further update upon commencement of the flow test
operations.

1 Cautionary Statement: The estimated quantities of petroleum that may be
potentially recovered by the application of a future development project
relate to undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration, appraisal
and evaluation are required to determine the existence of a significant
quantity of potentially movable hydrocarbons.

2 Mean unrisked resource - Net Entitlement to 88 Energy. Refer announcement
dated 23 August 2022 for pre-Hickory-1 estimates.

3 Refer announcement dated 6 November 2023 for post Hickory-1 drilling
resource estimates.

 

 

This announcement has been authorised by the Board.

 

 

Media and Investor Relations:

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 8 9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations

 Michael Vaughan                                  Tel: +61 422 602 720

 EurozHartleys Ltd
 Dale Bryan                                       Tel: + 61 8 9268 2829

 Cavendish Capital Markets Limited                Tel: +44 (0)20 7397 8900
 Derrick Lee                                      Tel: +44 (0)131 220 6939
 Pearl Kellie                                     Tel: +44 (0)131 220 9775

 

 

 

 

Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting
contained in this announcement was prepared by, or under the supervision of,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 40 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist/Geophysicist who
has sufficient experience that is relevant to the style and nature of the oil
prospects under consideration and to the activities discussed in this
document. Dr Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and reserve
estimates to be fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and industry
memberships appear on the Company's website and both comply with the criteria
for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.

 

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