88 Energy has provided an update related to its operations in the NPR-A region of the North Slope of Alaska.
Highlights
Project Phoenix (~75% WI)
- Hickory-1 exploration well spudded on 9 March 2023 and was drilled to Total Depth (TD) of 10,650 feet with completion of a succesful wireline and coring program. Initial summary of results include:
- Initial petrophysical interpretation confirmed presence of multiple hydrocarbon-bearing pay zones across all pre-drill targets
- New Upper SFS reservoir identified, not previously intersected by nearby wells and with abundant oil shows in cuttings
- Estimated net pay calculated from wireline data of approximately 450 feet over all pay zones
- Total porosity across all pay zones averaged 9-12%, including key zones identified for potential testing in the Upper and Lower SFS with 11-16% total porosity
- Pre-drill expectations met or exceeded:
- Reservoir quality (higher porosity in SFS and BFF)
- Thickness (higher total gross and net reservoir, higher total net pay)
- Formation of the Toolik River Unit over the western and central zones of Project Phoenix lease area was approved by the the Alaskan Department of Natural Resources
- Subsequent to quarter end, activities in relation to Hickory-1:
- Hickory-1 was cased and suspended with planning for 2023/2024 winter season flow testing commencing as well as post-well analysis of cores and wireline data
- All samples have been transported to labs for further investigation and analysis.
- Nordic Calista Rig-2 has been demobilised with operations completed on budget.
Project Leonis (100% WI)
- Subsequent to quarter end, the adjudication process was completed and formal award notices issued to 88 Energy by the Alaskan Department of Natural Resources (DNR) covering the entire Project Leonis lease area
- Integrated petrophysical and seismic study underway including reprocessing of Storms 3D data
Project Longhorn (~73% WI)
- Production over the quarter averaged 425 BOE per day gross (~72% oil)
- Quarterly cash flow distribution of A$0.3M received in March 2023 which was net of final CAPEX payments for the two workovers completed in Q4 2022
Corporate
- Share placement completed on 6 February 2023, raising gross proceeds of A$17.5M
- Cash balance of A$26.3M and zero debt (as at 31 March 2023)
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Source: 88 Energy
