REG - 88 Energy Limited - Further Information on Hickory-1 Flow Test Results

88 EnergyAnnouncement

19/04/2024 07:00

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RNS Number : 3061L  88 Energy Limited  19 April 2024

19 April 2024

 

88 Energy Limited

FURTHER INFORMATION ON HICKORY-1 FLOW TEST RESULTS

ANNOUNCED 2 AND 15 APRIL 2024

 

Highlights

·   Dual success at Hickory-1 with the flowing of light oil from the USFS
and SMD reservoirs.

·   Post flow test studies to commence including the securing of additional
Contingent Resource estimates.

·   Commercialisation options to be considered in parallel, including
farm-out to a strategic development partner and/or early and a capital-lite
development.

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to provide a further update and information in relation to the
successful flow test results announced on 2 April and 15 April 2024, from the
Company's Hickory-1 discovery well, located in Project Phoenix on the North
Slope of Alaska (88 Energy ~75% WI owner).

 

As announced, light oil was recovered from both the USFS and SMD-B reservoirs,
with key details from each test summarised below, and to provide additional
clarification on the reported results.

Upper SFS (USFS) Flow Test Results

·   A 20ft perforated interval in the Upper SFS reservoir was stimulated
via a single fracture stage of 241,611 lbs proppant volume.

·   The well was cleaned-up and flowed for 111 hours in total, of which 88
hours was under natural flow back and 23.5 hours utilising nitrogen lift. Of
the 88 hours of natural flow back period included ~78 hours of clean up with
trace oil recovered during this time, and a period of ~ 10.5 hours of
established production.

·   During the established production period of 10.5 hours the well
produced at an average oil flow rate of ~ 42 bopd during the natural flow back
period, producing a total of ~ 19bbls of oil. Approximately 6bbls of oil was
also recovered during the clean up / non-established production period.

·   The USFS test produced at a peak flow rate of over ~70 bopd, which was
an instantaneous rate calculated during flow back period via an oil tank
volume measurement of 1.55 bbls over a 30 minute period.

·   Multiple oil samples were recovered with measured oil gravities of
between 39.9 to 41.4 API (representing a light crude oil).

 

SMD-B Flow Test Results

·   A 20ft perforated interval in the SMD-B reservoir was stimulated via a
single fracture stage of 226,967 lbs proppant volume.

·   The well was cleaned-up and flowed for 84 hours in total under nitrogen
lift, with ~68 hours of clean up prior to the flowing of oil to surface, with
the well flowing oil over ~16 hour period.

·   The well produced at an average oil cut of 4% following initial oil to
surface, with instantaneous rates observed during the 16-hour period varying
as the well continued to clean up at managed fluid flow rate of ~170 bbls/d
with a calculated total volume during the flow back period following
establishment of oil cut of ~4 bbls of oil.

·   The SMD-B test produced at a calculated peak flow rate of ~50 bopd,
which was an instantaneous rate calculated during the flow back period via a
measurement of observed oil cut and fluid flow rates.

·   Multiple oil samples were recovered with measured oil gravities of
between 38.5 to 39.5 API (representing a light crude oil).

 

Forward Plan

 

Following the successful flow testing at the Hickory-1 discovery well, 88
Energy will be focused on:

 

·   Completing post-well testing and analysis at Hickory-1;

·   Securing a contingent resource for the SFS and SMD reservoirs;

·   Commencing a formal farm-out process to attract a high-quality new
partner to fund the next stage of appraisal and development; and

·   Advance planning and design of an early stage production system.

 

The Company looks forward to updating shareholders on the post test analysis.

 

This announcement has been authorised by the Board.

 

Media and Investor Relations:

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 (0)8 9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations
 Michael Vaughan                                  Tel: +61 (0)422 602 720

 EurozHartleys Ltd
 Dale Bryan                                       Tel: +61 (0)8 9268 2829

 Cavendish Capital Markets Limited                Tel: +44 (0)207 220 0500
 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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