88 Energy achieves success in latest Hickory-1 work

Oil and gas explorer 88 Energy announced the successful completion of the wireline logging suite and sidewall coring programme for its Hickory-1 well on Tuesday, confirming the presence of multiple hydrocarbon-bearing zones.

The AIM-traded company said the programme validated the preliminary petrophysical interpretation of multiple pay zones identified during drilling from logging-while-drilling (LWD) data.

It said the programme consisted of five runs, including the Triple Combo, NMR/XMR, Dielectric Scanner, Dipole Sonic, and Sidewall Coring tools.

The wireline logging programme aimed 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, which was successfully achieved.

88 Energy said the estimated net pay calculated from wireline data was about 450 feet over all pay zones, with gross pay estimated to be over 2,000 feet.

The average total porosity across all zones was 9% to 12%, including key zones identified for potential testing in the Upper and Lower SFS with between 11% and 16% total porosity.

It said the post-well analysis of cores and wireline data was now set to start, including assessment and classification of resources across all reservoirs, including maiden resource estimates for the Upper SFS reservoir.

Multiple zones in Hickory-1 were planned to be flow tested, all of which possessed similar reservoir characteristics to wells that had flowed on adjacent acreage.

Hickory-1 would be cased and suspended in preparation for carrying out a flow test programme as early as possible in the 2023-2024 winter operational season, with preliminary planning already underway, including identifying suitable rigs to undertake the work.

The firm reported that pre-drill expectations were met or exceeded on reservoir quality and thickness, with higher-than-expected porosity in SFS and BFF, and higher total gross reservoir, total net reservoir, and total net pay.

“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,” said managing director Ashley Gilbert.

“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 focussed 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 2023-2024 winter operational season in Alaska.”

Gilbert said the firm was “particularly encouraged” by the fact that wells in the immediately=adjacent northern acreage had flowed and recovered light oil to surface from all of the SMD, SFS and BFF reservoirs, which boded well for its 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.”

At 1433 BST, shares in 88 Energy were down 10.71% at 0.5p.

Reporting by Josh White for Sharecast.com.