88E flow test update on the North Slope Of Alaska, USA
Our US oil & gas Investment 88 Energy (ASX: 88E) is days away from flow testing its Hickory-1 discovery in the Nort Slope Of Alaska, USA.
We have covered 88E’s flow test and its significance for the company in our last note.
In that note we detailed:
- What we know about 88E’s Hickory-1 well so far?
- What we are looking forward to with the flow test
- What Success Looks like - 88E’s Pathway to Commercialisation
You can read that note here: 88E Found Oil. Does it Flow? We will Soon Find Out
Today, 88E confirmed that mobilisation had completed and pre-flow testing operations re almost finished.
The next stage of works will be all about preparing the well for the flow test including drilling out the well plugs and cleaning out the wellbore.
88E expects this work to take ~ five days.
88E put out the following timeline for the program which shows each day as a blue square.
So we should see the first reservoir (Upper SFS) being tested in five days time and the flow test to run for ~10 days before the second reservoir (SMD-B) is tested for another 10 days.
The timeline below shows that the program should be complete within the next ~30 days.
Context on the flow test -
For those who are new to the story, last year 88E drilled the Hickory-1 well, targeting a ~647m barrel prospective resource.
In November, 88E was able to declare a discovery from one of the six reservoirs intercepted - declaring a ~250m barrel contingent resource in the lower BFF reservoir on the project.
Now 88E will be flow testing the well in shallower reservoirs - a key phase of work and proof point to determine whether or not 88E’s project can be commercialised.
With the flow test 88E’s goal is to try and declare discoveries and book contingent resources across more of its reservoirs reservoirs.
88E to test two primary targets -
With its flow test 88E will be focused on two reservoirs - the upper SFS & SMD reservoirs.
Of the two reservoirs, the upper SFS reservoir has never been flow tested before whereas the SMD-B has flowed oil to surface in wells drilled by 88E’s neighbour Pantheon Resources.
Pantheon managed to bring oil to surface across its Alkaid 2 & Talitha-A well’s from that reservoir.
What’s next for 88E?
- Hickory-1 flow test 🔄
- Maiden prospective resource estimate for 88E’s Project Leonis 🔄
