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88 Energy Ltd, a player in the oil and gas sector, provided an update on its projects in Alaska, Texas, and Namibia in its half-year financial report. The company emphasized that Project Phoenix in Alaska remains a primary focus.
Alaska: Progress on Project Phoenix
The Hickory-1 discovery well in Alaska, drilled earlier in 2023 by 88Energy (LSE:88E), underwent flow testing during the winter. The testing, which targeted the Upper Slope Fan System (USFS) and SMD-B reservoirs, yielded promising results. The USFS well achieved a peak flow rate of approximately 70 barrels of oil per day (bopd), with oil cuts increasing throughout the flow-back period, reaching a maximum of 15%. This outcome has laid the groundwork for monetizing Project Phoenix. Planned advancements include the development of a potential capital-light modular Early Production System.
Texas: Workover Success at Project Longhorn
In Texas, Project Longhorn experienced a series of workovers that increased production, though the output fell short of initial forecasts. Despite this, the project continues to deliver substantial cash flows, contributing A$1.2 million to the company's revenues during the first half of 2024.
Namibia: New Developments at Project Leonis
In Namibia, 88 Energy holds a 20% working interest in the PEL 93 license following a successful farm-in agreement. The project area is considered highly prospective, with significant exploration potential. Project Leonis, in particular, has demonstrated notable potential, with a maiden internal Prospective Resource estimate of 381 million barrels of recoverable oil in the newly identified Tiri Prospect. The company has engaged Fairweather LLC for planning and permitting the Tiri-1 exploration well, which aims to drill the Tiri Prospect in the Upper Schrader Bluff Formation.
Financial Update and Future Plans
During the first half of 2024, 88 Energy completed an oversubscribed share placement, raising A$9.7 million. These funds will support ongoing and upcoming activities, including further development of Project Phoenix and Project Leonis.
