88 Energy(88E), an Alaska-focused explorer, has reached Total Depth in the Hickory-1 exploration well and reevealed the discovery of a new Upper SFS reservoir.
Today's statement follows last week’s encouraging news of successfully intersecting and drilling through the SMD-A, B and C reservoirs at its Hickory-1 project, while also encountering hydrocarbons during the inspection of logging-while-drilling data. 88 told investors today that a new Upper SFS reservoir has been identified, which has not previously been intersected by any wells on Project Phoenix.
Work is now commencing to define the new prospect and its potential resource. The interval recorded multiple shows and elevated log responses and pops or bubbles were noted in rig tanks, an indication of hydrocarbons evolving from the drilling fluid at the surface.
The Alaskan-focused explorer also reported that the Hickory-1 exploration well has reached a Total Depth of 10,650 feet. 88 said it encountered pay in the primary SMD reservoirs along with the SFS reservoir, plus the new Upper SFS reservoir and BFF reservoir.
88 Energy also added that the presence of hydrocarbons was evidenced by fluorescence under ultraviolet light in multiple cuttings samples in the primary and secondary targets, including the new Upper SFS reservoir.
A wireline logging programme is now set to run with the primary focus of obtaining sufficient data to optimally design and plan for the flow testing of Hickory-1, scheduled for the 2023/3024 winter season. The logging programme is expected to take 5-7 days to be completed.
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The recent results add to the growing body of evidence supporting the potential of 88 Energy's Alaskan exploration programme, which has been de-risked by recent drilling and flow test carried out on adjacent acreage by Pantheon Resources, according to broker Cenkos.
Further contributing to the programme's success, Hickory-1 is positioned adjacent to the Trans Alaskan Oil Pipeline route and the Dalton Highway, delivering an immediate potential export route, speeding-up future development activities, and reducing costs, making the positioning of Hickory-1 attractive from all angles.
The news of Hickory-1’s completion was well met by investors this morning, pushing 88 Energy’s shares up as much as 25% in early trade. Now that Total Depth at Hickory-1 has been reached, the company will look ahead to running a wireline logging programme, which will reveal the initial petrophysical interpretation of multiple pay zones identified during drilling, and obtain data to optimally design and plan the flow test of Hickory-1.
The company will provide further updates following the completion of the wireline, so make sure to to keep up the date with the latest news and updates.