88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or the Company ) is pleased to report that the Hickory-1 exploration well is drilling ahead after successfully intersecting the SMD-A, B and C reservoirs. The current depth of the well is approximately 8,820 feet as at 17:30 Alaska time on 28 March 2023.
Highlights
· Hickory-1 has successfully intersected and drilled through the SMD-A, B and C reservoirs.
· Initial interpretation of logging-while-drilling data, together with the noted oil shows, elevated mud gas readings, high resistivity signatures and crossover of neutron density curves have indicated potential hydrocarbon pay.
· The Nordic Callista Rig-2 will continue to drill ahead into the secondary reservoirs, through to TD at approximately 11,000 feet which is anticipated to take a further 3-5 days.
All three primary SMD reservoir targets were intersected slightly shallower than prognosed depths, with reservoir thicknesses consistent with pre-drill interpretation.
Logging-while-drilling ( LWD/MWD ) data collected over the primary targets has indicated potential hydrocarbon pay that will be further assessed by the wireline logging and coring program. This program is set to commence immediately after the well reaches Total Depth ( TD ).
The presence of hydrocarbons was evidenced by fluorescence under ultraviolet light in cuttings samples. Reservoir permeability was also indicated by “immediate and streaming” blue-white “cuts” when solvent was applied. Elevated C3-C5 mud gas readings were observed as well as high resistivity signatures and crossover of neutron density curves, providing further indications of potential hydrocarbon pay.
Given the results in the primary SMD targets, and to preserve borehole condition (in-line with previous commentary around well execution strategy), the decision has been made to TD after drilling through the secondary SFS and BFF reservoir targets but prior to the smaller and lower priority tertiary Kuparuk ( KUP ) reservoir target. The KUP target at Project Phoenix is planned to be assessed at a later date, subsequent to the proposed flow testing of the Hickory-1 exploration well which is scheduled for the 2023 / 24 Alaskan winter operational season.
It is expected that it will take a further 3-5 days to drill through the secondary SFS and BFF reservoir targets. Shortly thereafter, the well is expected to reach TD at approximately 11,000 feet.
Immediately post the well reaching TD, the Nordic Callista Rig-2 will commence pulling out of hole and wireline logging preparations will commence. The logging program is expected to take between 5-7 days, after which the Hickory-1 well is planned to be cased and suspended. All operations, including suspension and demobilisation from the well site, are expected to be completed around mid-April.
The Company expects to provide a further update on progress at Hickory-1 after reaching TD.
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: [email protected]
