88E flow test now scheduled for Q1 2024
Our oil and gas exploration Investment 88 Energy (ASX: 88E) has just put out an update on its upcoming flow test on the North Slop of Alaska, USA.
Earlier this year 88E drilled its ~647 million barrel prospective mean unrisked resource (net to 88E) with its Hickory-1 well.
Here everything 88E found with the drill program:
- ✅ Fluorescence (an indicator of oil presence) - Fluorescence across multiple reservoir units.
- ✅ Oil in samples - Oil shows from multiple reservoir units.
- ✅ Mud gas readings - Elevated mud gas readings across multiple reservoir units.
- ✅ New reservoir unit identified (unexpected) - 88E hit a new reservoir unit that sits outside of its current prospective resource estimate.
- ✅ ~450 feet in net pay - 88E hit over 2,000 feet in gross pay and ~450 feet in net pay across multiple reservoir units.
- ✅ Average porosity of ~9-12% across all zones - At a high level, porosity measures how much oil and or gas sits inside the rocks. Highlight results came from the upper SFS and Lower SFS where porosity was between 11-16%.
The next stage will be to flow test the Hickory-1 to see if the well flows at commercially viable rates.
88E expects to be flow testing in early Q1 2024.
Key takeaways from today’s announcement:
- Newly identified reservoir unit bigger than expected
With Hickory-1 88E hit a reservoir unit that it wasnt expecting - the Upper Slope Fan System (Upper SFS).
Today, 88E confirmed that mapping of that reservoir had been completed and that the upper SFS reservoir was bigger than what was originally mapped.
88E has now mapped the reservoir over ~7km.
Importantly the Upper SFS is not included in 88E’s ~647m barrel prospective resource estimate.
2). Flow test design being completed
88E confirmed today that it has built its stimulation models for the upcoming flow test.
88E is using the data available from neighbour Pantheon Resources wells to design the flow test.
As a result of the analysis work after the drilling 88E now knows exactly what it needs to run a flow test with the highest chance of success.
What’s next for 88E:
Final results from the Hickory-1 well 🔄
Maiden prospective resource estimate for Project Leonis 🔄
