Highlights
· Hickory-1 flow test to assess 647 million barrels of oil resources.1,2
· Upper Slope Fan System (Upper SFS) mapping complete, with reservoir zone more laterally extensive than previously considered. Resources in this zone have not yet been estimated and are additional to the pre-drill estimates referred to above.
· Stimulation and flow test modelling for each of the target intervals in Hickory-1 now complete.
· Rig-111 secured for flow test and ordering of long lead flow test items underway.
· Flow test planning and permitting remains on schedule with operations set to commence as early as possible in Q1 2024 in the Alaskan winter operational season.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is pleased to announce that mapping of the recently identified Upper Slope Fan System (Upper SFS) across its Project Pheonix acreage has been finalised. Seismic interpretation and log correlation has revealed that the Upper SFS reservoir is more extensive than originally mapped, correlating over 4 miles (7km) to strong shows in the Icewine-1 well (previously interpreted/attributed to be part of the lower SMD-A package). Resources in this reservoir are not currently included in the Company’s resource estimates as they have yet to be assessed.
The Upper SFS target remains an untested reservoir in nearby offset wells. The quality and strength of shows recorded during the drilling and logging of Hickory-1 remain amongst the best the Company has witnessed to date. Moreover, post-well geochemical analysis of Hickory-1 sidewall core data indicate fluid maturity to be in the early-peak oil window.
Figure 1: Mapping of the Upper SFS target indicates reservoir is more extensive than originally thought, correlating over 4 miles (7km) to strong shows in the Icewine-1 well.
1 Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
2 Mean unrisked resource – Net Entitlement to 88 Energy. Refer announcement released to ASX on 23 August 2022. Resources estimated pre-Hickory-1 drilling.
Figure 2: Mapping of the Upper SFS reservoir correlating to strong shows in the Icewine-1 well.
Industry leading simulation models have been built for each of the target intervals in Hickory-1, with the objective of ensuring a successful stimulation and flow test in each zone. The Hickory-1 simulation models incorporate high quality offset well data and operational lessons learnt in the area. As is typical for early stage appraisal and development operations, the largest gains in understanding are achieved in the initial stages of activity and analysis, with 88 Energy set to benefit from neighbouring offset well test results. As previously reported, Pantheon Resources have announced flow rates of 50-100 BOPD from a number of vertical wells and intervals in the adjacent northern acreage.
These vertical test results, although modest, provide critical information in understanding the reservoirs and also allow the design of long, horizontal wells that would be employed in any development scenario. Using unconventional completion techniques, horizontal development wells typically achieve 6-12 times the flow rates seen in vertical wells in analogue fields in the Texas Lower 48
Figure 3: Imaged of modelled stimulation test designs and results.
Post-well analysis and flow test modelling of the Hickory-1 reservoirs have enabled accurate calculation of the quantum of completion fluids as well as the design of the completion string necessary for flow test operations. Sourcing and procurement of these long lead items is underway with operations scheduled for early Q1 2024. Permitting is on track with the Alaskan state authorities and All American Oilfield’s recently upgraded Rig 111 drilling/workover module has been secured for the flow test program.
