REG - 88 Energy Limited - Hickory-1 Surface Hole Completed

88 EnergyAnnouncement

23/03/2023 07:15

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RNS Number : 9075T  88 Energy Limited  23 March 2023

 

 

88 Energy Limited

Hickory-1 Surface Hole Completed

Highlights

·   Hickory-1 surface hole successfully drilled to 3,570 feet, cased and
BOP system tested successfully.

·   Operations progressing with Nordic Calista's Rig-2 now preparing to
drill ahead.

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to report that the Hickory-1 surface hole was successfully drilled to
3,570 feet, the surface casing installed and cemented and the Blow Out
Preventer (BOP) system tested successfully.

Nordic Calista's Rig-2 is now preparing to drill ahead, with the Hickory-1
exploration well expected to intersect the three primary SMD targets, before
drilling ahead into the secondary SFS and BFF reservoirs targets. The KUP
reservoir is a tertiary target and will be drilled subject to remaining time
in the season, borehole conditions and other technical considerations.

The Company anticipates the primary and secondary target zones to be
intersected within the next two weeks, before determining whether to drill
ahead to the tertiary target and reaching permitted Total Depth (TD) of
approximately 12,500 feet.

 

Logging while drilling and mudlogging are set to provide initial indications
as to the prospectivity of the target zones at the Hickory-1 location. A
sophisticated, targeted wireline logging program is planned to be run after
reaching TD, which includes side wall cores (both pressurised and
non-pressurised), triple combo, dielectric scanner and Nuclear Magnetic
Resonance.

The wireline logging program is expected to take approximately five to seven
days to complete. It is designed to gather extensive data which will be used
to optimise the planned Hickory-1 flow test program scheduled for the 2023/24
winter season (subject to well results).

The Company will provide further updates subsequent to Hickory-1 achieving TD.

 

Figure 1: Nordic Calista Rig-2 at the Hickory-1 drilling location, adjacent to
the Dalton Highway, North Slope Alaska.

( )

 

 

Figure 2: Hickory-1 well designed to test up to 6 stacked targets.

 

 

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                      Tel: +61 410 276 744

Andrew Edge / Michael
Vaughan
Tel: +61 422 602 720

 

EurozHartleys Ltd

Dale Bryan
 
Tel: + 61 8 9268 2829

 

Cenkos
Securities
Tel: + 44 131 220 6939

Neil McDonald / Derrick Lee

 

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 35 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.

About Project Phoenix

Project Phoenix (88E 75.2% WI) is located on the central North Slope of Alaska
and encompasses approximately 82,846 gross acres. It is situated on-trend to
recent discoveries by Pantheon Resources Plc (LSE: PANR) in multiple, newly
successful play types across top, slope and bottom-set sands of the Mid
Schrader Bluff, Canning and Seabee formations. Independent mapping has
demonstrated that these plays extend into the Phoenix acreage.

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1: Project Phoenix lease area, including mapped play fairways, Franklin
Bluffs 3D area and planned Hickory-1 well location.

 

Project Phoenix holds an estimated unrisked total of 647MMbbl of conventional
prospective oil resources (mean unrisked, net to 88E), independently assessed
by Lee Keeling and Associates (LKA) in Q3 2022 (see 88E ASX release dated 23
August 2022). The acreage has been significantly de-risked by the recent
Pantheon drilling and flow tests on their adjacent acreage to the North,
coupled with data from Icewine-1 well logs (encountered 380 ft of net oil pay
within SMD sands) and a modern 3D seismic data set (FB3D).

 

 

 

 Phoenix: Alaska North Slope            Unrisked Net Entitlement to 88E (1,6) Prospective Oil Resources (MMstb) (4,5)
 Prospects (Probabilistic Method)       Low (1U)          Best (2U)         High (3U)         Mean              COS(3)
 Shelf Margin Delta (SMD A, B & C)      44                140               326               145               81%
 Slope Fan System (SFS)                 24                84                217               89                50%
 Basin Floor Fan (BFF)                  75                341               930               358               50%
 Kuparuk (KUP)                          24                56                98                56                72%
 Prospects Total                         167                621              1,570                647 (2)

 

1.    88 Energy net resources have been calculated using a 75.227% working
interest and a 16.5% royalty.

2.    The unrisked means, which have been arithmetically summed, are not
representative of expected total from the prospects and implies a success case
in all reservoir intervals. 88 Energy cautions that the arithmetically summed
1U estimate may be a conservative estimate and the arithmetically summed 3U
estimate may be optimistic when compared to a statistical aggregation of
probability distributions.

3.    COS represents the geological chance of success as assessed by 88
Energy and reviewed and endorsed by LKA.

4.    Prospects are subject to a phase risk (oil vs gas). Chance of oil has
been assessed as 100% for all targets except for the Kuparuk Formation which
has been assessed as 70%.  Phase risk has not been applied to the unrisked
numbers.

5.    The Prospective Resources have not been adjusted for the chance of
development. Quantifying the chance of development (COD) requires
consideration of both economic and other contingencies, such as legal,
regulatory, market access, political, social license, internal and external
approvals and commitment to project finance and development timing. As many of
these factors are outside the knowledge of LKA they must be used with caution.

6.    Please refer to ASX announcement dated 23 August 2022 for further
details in relation to the prospective resources estimate and associated
risking with Phoenix.

 

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

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