TIDM88E
RNS Number : 7199V
88 Energy Limited
11 April 2023
This announcement contains inside information
11 April 2023
88 Energy Limited
Hickory-1 Well To Proceed to Flow Testing
Highlights
-- Wireline programme successfully completed on the Hickory-1 well.
o Initial petrophysical interpretation confirmed presence of
multiple hydrocarbon bearing pay zones across all pre-drill
targets, in addition to the new Upper SFS reservoir identified.
o Estimated net pay calculated from wireline data of
approximately 450 feet over all pay zones (gross pay estimated to
be over 2,000 feet).
o Average total porosity across all zones of 9-12%, including
key zones identified for potential testing in the Upper and Lower
SFS with between 11-16% total porosity .
o Pre-drill expectations met or exceeded on reservoir quality
(higher than expected porosity in SFS and BFF) and thickness
(higher total gross reservoir, total net reservoir and total net
pay).
-- Post-well analysis of cores and wireline data now set to
commence, including assessment and classification of resources
across all reservoirs including maiden resource estimates for the
Upper SFS reservoir.
-- Multiple zones in Hickory-1 planned to be to flow tested, all
of which possess similar reservoir characteristics to wells that
have flowed on adjacent acreage.
-- Hickory-1 to be cased and suspended in preparation for
carrying out flow test programme as early as possible in the
2023/2024 winter operational season; preliminary planning has
already commenced including identification of suitable rigs to
undertake the work.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or
the Company ) is pleased to report that the Hickory-1 wireline
logging suite and sidewall coring programme has been successfully
completed. This programme has confirmed the preliminary
petrophysical interpretation from LWD (logging while drilling) data
of the presence of multiple hydrocarbon bearing zones across all
pre-drill targets, as well as the new Upper SFS reservoir.
The sophisticated wireline logging and sidewall coring programme
consisted of 5 runs which included the Triple Combo, NMR/XMR,
Dielectric Scanner, Dipole Sonic and Side Wall Coring ( SWC )
tools. The focus of the wireline logging programme was to:
- validate the preliminary petrophysical interpretation of
multiple pay zones identified during drilling from LWD logs;
and
- obtain data to optimally design and plan a targeted flow test of Hickory-1.
Both goals were successfully achieved.
Interpretation of wireline data has confirmed the following
preliminary petrophysical assessment:
- an estimated gross pay of over 2,000 feet and a calculated net
pay of approximately 450 feet over all zones in the well; and
- average total porosity across all pay zones of 9-12%,
including key zones identified for potential testing in the SFS and
Upper SFS with between 11-16% total porosity.
Pre-drill expectations were met or exceeded on reservoir quality
(higher than expected porosity in SFS and BFF) and thickness
(higher total gross reservoir, total net reservoir and total net
pay).
Side wall coring ( SWC ) was also performed over all reservoir
intervals with samples recovered to surface. The retrieved SWC
fluoresced under ultraviolet light in numerous cores over the SMD,
SFS and BFF, and visible porosity was also confirmed in the SWC.
These core samples will now be transported to a lab in Anchorage
for further analysis.
Figure 1: SWC sample retrieved from Hickory-1 showing
fluorescence .
In addition, a preliminary petrophysical comparison of Hickory-1
prospective zones against the interval that flowed oil in
Pantheon's Alkaid-1, has indicated favourable potential for
successful flow tests from multiple zones in the Hickory-1
well.
Pantheon's wells on the adjacent northern acreage - Alkaid-1,
Alkaid-2, Talitha-A and Theta West-1 - have all flowed 35 to 40 API
oil from similar sandstones, with testing confirming reservoir
deliverability of light, sweet oil (see Pantheon releases of 7
February and 21 February 2022).
Figure 2: Hickory-1 has intersected all primary and secondary
targets, and the newly identified Upper SFS reservoir, prior to
calling TD within the HRZ to preserve hole conditions.
Forward Plan
Hickory-1 will now be cased and suspended in preparation for
flow testing, which is set to be undertaken as early as possible in
the 2023/2024 winter season. A detailed evaluation of all the data
obtained from the Hickory-1 drilling and wireline logging
programmes will be undertaken in order to plan the optimal flow
test programme. It is expected that a light-weight rig can be
utilised to complete these operations in the next winter season and
the Company has commenced discussions with rig providers to
complete this work.
The Nordic Calista Rig 2 is currently running 7" casing ahead of
suspending the well. The remaining program is anticipated to take
5-7 days prior to Rig-2 rigging down and being released from site,
signifying the end of 88 Energy's 2022/2023 winter drilling
campaign.
The Company is excited by the results of this phase of the
campaign and eager to return during the 2023/2024 winter season for
flow testing of Hickory-1.
88 Energy will provide further information as the analysis of
the well results progresses and will release details of the flow
test programme and the future work programme for Project Phoenix
when this information is available.
Managing Director, Ashley Gilbert, commented:
"We are excited about the results to date from the Hickory-1
well, and particularly encouraged by the identification of multiple
pay zones across the primary and secondary targets.
The results have confirmed or exceeded our pre-drill
expectations with regard to the primary and secondary targets, and
also identified the new Upper SFS reservoir, which is very pleasing
for both the Company and its shareholders. We are now fully focused
on demobilisation and safe completion of the current phase of the
Hickory-1 well, in parallel with early planning actions for the
next phase of operations at Hickory-1: scheduled flow testing as
early as possible in the 2023/24 winter operational season in
Alaska.
We are particularly encouraged by the fact that wells in the
immediately adjacent northern acreage have flowed and recovered
light oil to surface from all of the SMD, SFS and BFF reservoirs,
which bodes particularly well for our planned testing programme
next season.
We look forward to updating shareholders with post well analysis
results and our plans for the flow test of the Hickory-1 well,
along with an updated assessment and classification of resources at
Project Phoenix ."
Additional information related to Hickory-1:
Hickory-1 is located in State lands on the North Slope of
Alaska, adjacent to the Dalton Highway and Trans Alaska Pipeline,
within Alaskan Oil and Gas lease ADL 392314. 88 Energy holds a 75%
working interest in the well and is Operator. The well spudded on 9
March 2023 and was drilled to a Total Depth of 10,650 feet.
Multiple prospective pay zones in sandstone reservoir between
depths 7,700 and 10,500 have been identified. However more analysis
of the data is required to confirm and refine gross and net pay.
SWC's recovered will be sent to a laboratory for further analysis.
The Hickory-1 well has been suspended ahead of the planned flow
test in the 2023/24 Alaskan winter operational season.
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
Fivemark Partners, Investor and
Media Relations
Michael Vaughan Tel: +61 422 602 720
EurozHartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Plc Tel: +44 (0)20 7397 8900
Derrick Lee Tel: +44 (0)131 220 6939
Pearl Kellie Tel: +44 (0)131 220 9775
Pursuant to the requirements of the ASX Listing Rules Chapter 5
and the AIM Rules for Companies, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 35
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified
Geologist/Geophysicist who has sufficient experience that is
relevant to the style and nature of the oil prospects under
consideration and to the activities discussed in this document. Dr
Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and
reserve estimates to be fairly represented and consents to its
release in the form and context in which it appears. His academic
qualifications and industry memberships appear on the Company's
website and both comply with the criteria for "Competence" under
clause 3.1 of the Valmin Code 2015. Terminology and standards
adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this
document.
About Project Phoenix
Project Phoenix (88E 75.2% WI) is located on the central North
Slope of Alaska and encompasses approximately 82,846 gross acres.
It is situated on-trend to recent discoveries by Pantheon Resources
Plc (LSE: PANR) in multiple, newly successful play types across
top, slope and bottom-set sands of the Mid Schrader Bluff, Canning
and Seabee formations. Hickory-1 results and independent mapping
have demonstrated that these plays extend into the Phoenix
acreage.
Project Phoenix holds an estimated unrisked conventional total
of 647MMbbl of prospective oil resources (pre-drilling, mean
unrisked, net to 88E), independently assessed by Lee Keeling and
Associates (LKA) in Q3 2022 (see 88E ASX release dated 23 August
2022). The acreage was significantly de-risked by the recent
Pantheon drilling and flow tests on their adjacent acreage to the
North, coupled with data from Icewine-1 well logs (encountered 380
ft of net oil pay within SMD sands) and a modern 3D seismic data
set (FB3D).
Figure 1: Project Phoenix lease area, including mapped play
fairways, Franklin Bluffs 3D area and planned Hickory-1 well
location.
Phoenix: Alaska North Unrisked Net Entitlement to 88E (1,6) Prospective
Slope Oil Resources (MMstb) (4,5)
-------------------------- ----------------------------------------------------------
Prospects (Probabilistic Low (1U) Best (2U) High (3U) Mean COS(3)
Method)
-------------------------- ---------- ----------- ----------- ----------- -------
Shelf Margin Delta (SMD
A, B & C) 44 140 326 145 81%
-------------------------- ---------- ----------- ----------- ----------- -------
Slope Fan System (SFS) 24 84 217 89 50%
-------------------------- ---------- ----------- ----------- ----------- -------
Basin Floor Fan (BFF) 75 341 930 358 50%
-------------------------- ---------- ----------- ----------- ----------- -------
Kuparuk (KUP) 24 56 98 56 72%
-------------------------- ---------- ----------- ----------- ----------- -------
Prospects Total 167 621 1,570 647 (2)
-------------------------- ---------- ----------- ----------- ----------- -------
1. These pre-drilling resources estimates are net to 88 Energy
and have been calculated using a 75.227% working interest and a
16.5% royalty.
2. The unrisked means, which have been arithmetically summed,
are not representative of expected total from the prospects and
implies a success case in all reservoir intervals. 88 Energy
cautions that the arithmetically summed 1U estimate may be a
conservative estimate and the arithmetically summed 3U estimate may
be optimistic when compared to a statistical aggregation of
probability distributions.
3. COS represents the geological chance of success as assessed
by 88 Energy and reviewed and endorsed by LKA.
4. Prospects are subject to a phase risk (oil vs gas). The
pre-drilling chance of oil has been assessed as 100% for all
targets except for the Kuparuk Formation which has been assessed as
70%. Phase risk has not been applied to the unrisked numbers.
5. The Prospective Resources have not been adjusted for the
chance of development. Quantifying the chance of development (COD)
requires consideration of both economic and other contingencies,
such as legal, regulatory, market access, political, social
license, internal and external approvals and commitment to project
finance and development timing. As many of these factors are
outside the knowledge of LKA they must be used with caution.
6. Please refer to ASX announcement dated 23 August 2022 for
further details in relation to the prospective resources estimate
and associated risking with Phoenix.
7. It should be noted that the prospective resources were
calculated prior to the drilling of Hickory-1.
Cautionary Statement: The estimated quantities of petroleum that
may potentially be recovered by the application of a future
development project(s) relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration appraisal and evaluation is
required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDGPUQGCUPWPUU
(END) Dow Jones Newswires
April 11, 2023 02:00 ET (06:00 GMT)
88 Energy (LSE:88E)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
88 Energy (LSE:88E)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
