88 Energy (ASX:88E) on track to spud Hickory-1 well in early March

Highlights

• Preparations are on track for the spudding of the Hickory-1 well during early March 2023.
• The Hickory-1 ice pad construction is nearing completion.
• Nordic Calista’s Rig-2 is expected to be soon mobilised to the Hickory-1 well location.
• Flow testing of the Hickory-1 well is planned to be undertaken during the 2023/24 winter season.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF), an oil and gas exploration and production company, is moving ahead as per schedule to drill the Hickory-1 well within its Project Phoenix acreage in early March 2023.

As per the latest update, the Hickory-1 ice pad construction is nearing completion. The mobilisation of the Nordic Calista Rig-2 and operations equipment is expected to commence shortly.

Nordic Calista Rig-2 preparations ahead of mobilisation to Hickory-1 drilling location

Image source: 88E update 

Overview of Hickory-1 well

The well sits within the company’s Project Phoenix acreage on the central North Slope of Alaska. The project is adjacent to the Trans-Alaska Pipeline System and the Dalton Highway.

Project Phoenix lease area (Image and data source: 88E update)

The well, permitted to a total depth of up to 12,500 feet, is targeting 647 million barrels of oil.

The well is designed to appraise up to six conventional reservoir targets within the Shelf Margin Delta (SMD), Slope Fan System (SFS), Basin Floor Fan (BFF) and Kuparuk (KUP) reservoirs.  

• Primary targets - 3 SMD reservoirs, namely SMD-A, B and C
• Secondary targets - SFS and BFF reservoirs
• Tertiary target - KUP reservoir

Planned operations at Hickory-1

The Hickory-1 surface hole is planned to be drilled to 3,500 feet. It is to be noted that 9 5/8” surface casing has been installed while the blow-out preventer system has been tested.

The surface hole drilling is expected to take up to two weeks. Following which, the drilling operations to the total depth of up to 12,500 feet are likely to take further two weeks. After this, the company plans to undertake a targeted wireline logging program.

Depending on results from the drilling campaign, the company plans to undertake flow testing of the Hickory-1 well during the 2023/24 winter season. 88E suggests that this will provide ample time, subsequent to the drilling campaign, to optimise the flow test program, design, permitting and implementation.

88E shares traded at AU$0.011 midday on 27 February 2023.