88E’s primary targets to be hit in the next two weeks.
Our US oil and gas exploration Investment 88 Energy (ASX: 88E) just put out a drilling update from its Hickory-1 well on the Alaskan North Slope.
88E is in the middle of a drill program targeting six key reservoir targets and chasing a 647 million barrel unrisked prospective resource (net to 88E).
As of today, 88E has drilled the first 3,570 feet and successfully installed the surface casing/blow out preventer system.
Now, 88E is preparing to drill to a total depth of 12,500 feet and within the next two weeks 88E expects to be hitting the primary and secondary targets:
- Primary targets - SMD C + SMD B + SMD A
- Secondary targets - SFS + BFF
The final Kuparuk target will come last subject to available time and the borehole conditions.
With drilling ongoing we will be looking out for the following:
- Fluorescence - an indicator of oil presence;
- Oil odour in samples;
- Mud gas readings - hopefully, elevated;
- Net pay/gross pay numbers - an indicator of the size of the reservoirs; and
- Most importantly, we want to see a commitment from 88E to case and suspend the well so it can return to it for flow testing at a later date.
Considering 88E has decided to flow test this year's well at a later date, our bull/bear case expectations for this well are relatively simple:
- Bull case = Drill results positive enough for 88E to commit to a flow test.
- Bear case = 88E decides not to flow test the well.
What comes after drilling?
88E will run a wireline logging program to get detailed data that can be used in a future Hickory-1 flow test in late 2023/early 2024.
The wireline logging program is expected to take ~5-7 days after drilling is completed.
