This announcement contains inside
information
5 February 2024
88 Energy
Limited
Hickory-1 Pre-Flow Test
Operations on Track
Highlights
·
Flow test permitting completed with the approval
of the AOGCC frac sundry permit received.
·
Operations commenced with rig commissioning and
ice pad construction underway.
·
Hickory-1 flow test operations on track with
mobilisation of the All American Rig-111 and operations equipment
scheduled for mid-February 2024.
88 Energy Limited (ASX:88E, AIM:88E,
OTC:EEENF) (88 Energy or the Company) is pleased to report that the Hickory-1 well ice pad
construction has commenced and that pre-flow test operations are on
schedule, with all requisite permits and approvals received from
the relevant authorities including the recently received Alaska Oil
and Gas Conservation Commission (AOGCC) frac sundry permit. The
Hickory-1 well is located within 88 Energy's Project Phoenix
acreage, directly adjacent to the Trans-Alaska Pipeline System and
the Dalton Highway.
Mobilisation of All American Rig-111
to the Hickory-1 well location is scheduled to commence
mid-February 2024, together with equipment and services relating to
the well flow testing operations. The Hickory-1 program remains on
track for commencement of flow testing operations shortly after
mobilisation of the rig is completed.
Testing operations will focus on the
two primary targets, the SFS and the SMD zones. These two zones
possess, in aggregate, a multi-hundred million barrel oil
prospective resource (mean, unrisked)1,2,3.
The Upper SFS reservoir is set to be
flow tested first. This zone has not previously been flow tested at
Project Phoenix or on adjacent acreage. This will then be followed
by targeted testing of the SMD-B reservoir.
Each zone is set to be independently
isolated, stimulated and flowed to surface using nitrogen lift to
assist in an efficient clean-up of the well. Each of the two
planned flow tests is scheduled to take approximately ten days to
complete, with perforation, completion-running and stimulation
expected to take four days, followed by a clean-up and flow period
of up to four days and a pressure build up and downhole fluid
sampling program of up to 2 days.
The Company will provide a further
update upon commencement of the flow test operations.
1 Cautionary Statement: The estimated quantities
of petroleum that may be potentially recovered by the application
of a future development project relate to undiscovered
accumulations. These estimates have both an associated risk of
discovery and a risk of development. Further exploration, appraisal
and evaluation are required to determine the existence of a
significant quantity of potentially movable
hydrocarbons.
2
Mean unrisked resource - Net Entitlement to 88 Energy. Refer
announcement dated 23 August 2022 for pre-Hickory-1
estimates.
3
Refer announcement dated 6 November 2023 for post Hickory-1
drilling resource estimates.
This
announcement has been authorised by the Board.
Media and Investor Relations:
88
Energy Ltd
Ashley Gilbert, Managing
Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
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Fivemark Partners, Investor and
Media Relations
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Michael Vaughan
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Tel: +61 422 602 720
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EurozHartleys Ltd
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Dale Bryan
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Tel: + 61 8 9268 2829
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Cavendish Capital Markets Limited
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Tel: +44 (0)20 7397 8900
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Derrick Lee
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Tel: +44 (0)131 220 6939
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Pearl Kellie
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Tel: +44 (0)131 220 9775
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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 40 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.