The Upper Slope Fan System (Upper SFS) in 88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF)'s Project Phoenix is more extensive than initially mapped, according to a recent research note from Cavendish.
The newly completed mapping extends over four miles and correlates with strong oil potential, as evidenced by the Icewine-1 well, the corporate broker said.
Cavendish further noted that the Upper SFS exhibited some of the best reservoir conditions during drilling, with porosity levels reaching up to 16%.
These promising conditions are in addition to the 647 million barrels of prospective oil resources previously identified before drilling commenced.
In related developments, 88 Energy has finalised preparations for flow testing in another target area, Hickory-1.
A drilling rig has been secured, and tests are slated to begin as early as the first quarter of 2024. Resource estimates for the Upper SFS are still pending and are expected to provide further insights into the project's potential.
The shares traded sideways at 35 cents.