88 Energy shares soar on successful Hickory-1 flow test
88 Energy, an Alaska-focused hydrocarbon explorer, issued an update on its ongoing flow testing programme at the Hickory-1 discovery well, part of 88 Energy's flagship Project Phoenix on Alaska's North Slope. is conducting two flow tests at Hickory-1, one each for the Upper SFS and SMD-B reservoirs (see map below).
88 Energy confirmed light oil discovery at Hickory-1 from the Upper SFS (USFS) reservoir. USFS flow rates were achieved from a low-volume frac over a short 20ft vertical interval, in line with expectations based on results from Pantheon Resources' adjacent acreage.
The USFS test produced a peak gauge flow rate of over 70 bopd of light oil with c. 40-degree API oil gravity based on multiple samples. Next, will seek an Independent Contingent Resource declaration for both the Upper SFS and Lower SFS reservoirs, based on the observed flow of hydrocarbons to surface.
With the USFS portion of the flow test complete, operations will now transition to the shallower SMD-B reservoir, in line with 's multi-reservoir staged flow test approach for Hickory-1.
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A major milestone for 88 Energy as it confirms good quality and deliverability of the USFS reservoir via its Hickory-1 discovery well. The test represents the first flow of oil to surface at 's Alaska projects, and the first intersection of the USFS reservoir by any company. Oil production to surface was confirmed under natural flow, with flow back fluids including unquantified volumes of marketable natural gas liquids (NGLs) and associated gas, consistent with tests on an adjacent acreage.
Notably, the 70 bopd peak flow rate from the USFS reservoir was achieved from only a 20ft vertical section with a low-volume stimulation over a short period. Hickory-1 is a vertical well, designed for testing only. For production, long horizontal wells are planned, expected to deliver 6-12 times greater flow rates than what was observed at the USFS test.
Now that the USFS reservoir has been confirmed as commercially viable, will move on to the shallower SMD-B reservoir, which has been previously successfully tested on an adjacent acreage by Pantheon Resources. As with the USFS test, the zone will be independently isolated, stimulated and flowed to surface. Testing operations are scheduled to complete in April 2024.
The Hickory-1 discovery well is located within '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.
shares soared 29% on the news.
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