88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has detailed plans for the Hickory-1 exploration well, in Alaska, where drilling is slated next year.
The company, in today’s quarterly activities report to the Australian Securities Exchange, highlighted that the Hickory well will be drilled vertically, down to a depth of around 12,500 feet. It is intended to test four reservoirs.
In all, it is planned to appraise six stacked reservoir targets, the company noted.
At the same time, 88 Energy updated investors on its non-operated production asset in Texas which is known as Project Longhorn. Here, the company holds a 73% working interest in a package of wells which yielded 450 barrels of oil per day (gross) marking a 60% rise in volumes following investments in work-over operations that have boosted productivity.
88 Energy noted that its investment in Project Longhorn, in mid-February, has so far resulted in net cash returns of A$2.8mln.
It now expects to see Project Longhorn volumes increase to over 500 boepd by the end of 2022. Further well workovers are planned for 2023.
At the end of the quarter, the company had A$17.5mln of cash reserves, following a A$13.9mln capital raise in August.