Ashley Gilbert, the managing director of 88 Energy Ltd (AIM:88E, ASX:88E, OTC: EEENF), announced that following the success of the Hickory-1 well, the company is initiating a farm-out process to secure strategic partners for the development of Project Phoenix on Alaska’s North Slope.
In the first quarter, Project Phoenix showcased impressive results with the Upper Slope Fan System (USFS) achieving a peak flow rate exceeding 70 barrels of oil per day. Additionally, the Shelf Margin Deltaic (SMD) reservoir recorded a promising flow rate of around 50 barrels per day.
These outcomes are anticipated to pave the way for the creation of long horizontal wells, which are known to produce substantially higher outputs than vertical wells. In light of these positive results, 88 Energy is preparing to seek independent contingent resource evaluations.
“This quarter represents a crucial turning point for 88 Energy, with the Hickory-1 well’s successful oil production significantly boosting Project Phoenix’s prospects,” said Gilbert. “Our next step is to establish a formal farm-out process to bring in strategic partners for further expansion.”
Beyond Project Phoenix, 88 Energy has also made strides in other projects. The company has finalized the transfer of a 20% working interest in Namibia’s Petroleum Exploration Licence 93 (PEL 93), with plans for seismic acquisitions set for mid-2024.
Progress continues on Project Leonis in Alaska, with an expected prospective resource estimate in the first half of 2024 and active engagement in the farm-out process with several parties.
Project Longhorn in Texas maintained a consistent performance, producing an average of 328 barrels of oil equivalent per day during the first quarter. The project is currently undergoing two of the planned five workovers, which are expected to be completed within budget.
Financially, 88 Energy remains robust with a cash balance of A$17.5 million as of March 31, and it is currently debt-free.
