88 Energy Ltd (AIM:88E, ASX:88E, OTC: EEENF) has informed investors that it is currently conducting post-flow test studies on the Hickory-1 well in Alaska, aiming to revise its estimates of contingent resources upwards.
The company is also exploring commercialization strategies for the project, which will involve initiating a farm-out process to attract a strategic development partner and considering a potential early or capital-light development approach for the field.
Well, tests have confirmed oil production from the USFS and SMD-B reservoirs. Notably, the Hickory well was drilled vertically, and the company anticipates that future horizontal production wells could significantly increase output.
SMD-B Flow Test Results
· A 20ft perforated interval in the SMD-B reservoir was stimulated via a single fracture stage of 226,967 lbs proppant volume.
· The well was cleaned-up and flowed for 84 hours in total under nitrogen lift, with ~68 hours of clean up prior to the flowing of oil to surface, with the well flowing oil over ~16 hour period.
· The well produced at an average oil cut of 4% following initial oil to surface, with instantaneous rates observed during the 16-hour period varying as the well continued to clean up at managed fluid flow rate of ~170 bbls/d with a calculated total volume during the flow back period following establishment of oil cut of ~4 bbls of oil.
· The SMD-B test produced at a calculated peak flow rate of ~50 bopd, which was an instantaneous rate calculated during the flow back period via a measurement of observed oil cut and fluid flow rates.
· Multiple oil samples were recovered with measured oil gravities of between 38.5 to 39.5 API (representing a light crude oil).
During testing in the Upper SFS (USFS) reservoir, a 20-foot section was evaluated, achieving a peak flow rate of over 70 barrels of oil per day. The quality of the oil was recorded between 39.9 and 41.4 API, categorized as light crude oil. Tests on the SMD-B reservoir calculated a peak rate of 50 barrels per day, with oil quality ranging from 38.5 to 39.5 API light crude oil.
Earlier this week, 88 Energy outlined a development strategy for the field that includes utilizing long horizontal wells, which are expected to produce at rates 6 to 12 times greater than those of vertical wells.
