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Highlights
- The total depth of 10,650 feet, with drilling by Nordic Calista Rig-2, at Hickory-1 well has been successfully achieved
- 88 Energy says a new reservoir is identified and operations at the site (part of Project Phoenix) are progressing according to plans
- The next step is wireline logging program, with focus on initial petrophysical interpretation and data
Australia-listed oil & gas exploration company 88 Energy (ASX: 88E) has declared the completion of drilling up to total depth at its Hickory-1 exploration well.
The Slope Fan System (SFS) reservoir has better thickness and quality as compared to pre-drilling expectations, 88E confirms. This identifies numerous potential hydrocarbon bearing zones. The Basin Floor Fan (BFF) reservoir was found to be in accordance with expectations.
88E says that drilling to the depth of 10,650 feet indicates preliminary net pay at all targets.
Source: 88E ASX announcement dated 3 April 2023
Shares gain over 27%
The ASX-listed shares of the company traded at AU$0.011 at the time of writing on 3 April 2023, up more than 27% from the last close.
The new development
Drilling of 10,650 feet is now complete and the event followed the successful surface hole drilling done late last month. 88E says that numerous oil shows, along with heightened mud gas readings, have been identified during the course. The SFS target indicates many potential hydrocarbon bearing zones. Also, an additional upper SFS reservoir has been identified with large oil shows. This new reservoir was not formerly intersected by nearby wells in 88E's Project Phoenix acreage.
The company has also informed that the mud gas readings are in excess of background gas (15 times) with respect to SFS reservoirs and Upper SFS. The BFF came out to be in line with pre-drilling anticipations. Wireline logging, which is set to begin very soon, would now confirm the targets’ preliminary estimated net pay. The safely concluded drilling to the total depth was in collaboration with Nordic Calista Rig-2. The cost of this was below US$13.5 million (gross).
The technical decision to Total Depth ahead of intersecting Kuparuk reservoir (tertiary) in view of preserving the borehole for wireline logging was promoted by "encouraging" outcomes as of now with respect to primary and secondary targets.
Source: 88E ASX announcement dated 3 April 2023
Next steps
A wireline logging program will be undertaken with no delay. This would include Triple Combo, CMR/XMR and other elements. Further, the program would be finished within a week’s time, and all operations and demobilisation would likely end by 15 April, the company has said. 88E is also undertaking initial planning for flow test program (2023/24 winter season). This exercise would include identification of suitable rigs and the beginning of permitting.
About Project Phoenix
Source: 88E ASX announcement dated 3 April 2023
88E's asset is in Alaska (central North Slope). It covers more than 82,800 gross acres, and the location is on-trend to successful discoveries by Pantheon Resources Plc, in which numerous play types were revealed, and 88E says that these extend into the Phoenix acreage. Notably, the drilling by Pantheon has de-risked the acreage.
