88 Energy (88E) , an Alaska-focused hydrocarbon explorer, announced the commencement of flow test operations at the Hickory-1 discovery well, part of 88 Energy's flagship Project Phoenix on Alaska's North Slope.
Two flow tests are scheduled, one each for the Upper SFS and SMD-B reservoirs (see map below), expected to take approximately 10 days each. The tests should yield an extensive suite of data, including downhole and surface fluid samples, downhole pressure and temperature data, and surface pressure and temperature data. Flow rates of oil, gas and water will also be recorded.
88 Energy said well bore preparations were complete and perforation of the Upper SFS zone was imminent ahead of fracking and flow testing. Each of the two zones will be independently isolated, stimulated, and flowed to surface using nitrogen lift to assist in the efficient clean-up of the well.
The entire testing program is scheduled to complete in March 2024.
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88 Energy has commenced flow test operations at Hickory-1 on Alaska's North Slope. The discovery well is located within 88E's flagship Project Phoenix acreage, directly adjacent to the Trans-Alaska Pipeline System and the Dalton Highway. The tests aim to assess 647 million barrels of prospective oil resources.
The main targets will be the Slope Fan System (SFS) and Shelf Margin Deltaic (SMD), with each frac and flowback operation expected to take approximately 10 days. 88E previously extended the scope of the upper SFS, showing the reservoir to be more extensive than originally mapped, correlating over 7km to strong shows in the Icewine-1 well.
Hickory-1 is a vertical well, designed to provide information critical to development planning, such as reservoir deliverability, fluid compositions, pressures and connectivity. The well will be used for testing only. For production, horizontal wells are planned, modeled to deliver 6-12 times greater flow rates than vertical wells.
88 Energy is optimistic about flow test results from Hickory-1, as its northern neighbor on Alaska's North Slope, Pantheon Resources, recently announced a significant, 3rd party estimated 2C contingent resource for the Lower Basin Floor Fan reservoir - one of the deepest hydrocarbon-bearing pay zones intersected by Hickory-1. 88E said that members of the Pantheon team had been made available to share their knowledge of the adjacent acreage.
88 Energy also recently announced that its JV partner Burgundy had caught up with payments following difficulties last year, and fully committed to financing its share of Project Phoenix's expenses. Combined with 88 Energy's November £5.3m fundraise, the company is fully funded to develop Project Phoenix and its other projects in Alaska, Texas, and Namibia.
88E shares moved 3.5% higher on the announcement.
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