88 Energy (88E) , an Alaska-focused hydrocarbon explorer, updated markets on its upcoming flow testing programme at the Hickory-1 well, part of 88 Energy's flagship Project Phoenix on Alaska's North Slope.
88 Energy said Hickory-1's flow test and stimulation program was to commence in mid-February 2024, following ice road construction, pad construction, and rig mobilisation. Design, planning and logistics are now complete, with permitting on track for end of January 2024. The test is fully funded with a budget of US$11m (gross).
The main test targets are the Slope Fan System (SFS) and Shelf Margin Deltaic (SMD) (see map below). Each zone will be tested separately, planned to take approx. 10 days each. Hickory-1 is a vertical well, therefore not optimal for production, however information critical to development planning will be collected from the test, such as reservoir deliverability, fluid compositions, pressures and connectivity.
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88 Energy's flow testing programme at Hickory-1 is proceeding as planned and scheduled to commence in mid-February 2024. Flow test planning has been finalised, with all relevant permits submitted and final approvals expected to be granted before the end of January 2024. The vertical 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 can.
The test aims to assess 647 million barrels of prospective oil resources. Testing operations will focus on 2 primary targets - the aforementioned SFS and SMD reservoirs. 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.
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, third party estimated 2C contingent resource for the Lower Basin Floor Fan reservoir - one of the deepest hydrocarbon-bearing pay zones intersected by Hickory-1. 88 Energy plans to flow test this reservoir as well.
88 Energy is fully funded to support the flow test and its other work programmes following November's £5.3m fundraise.
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