88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) used today’s half-year financial report statement to give investors a rundown of its projects in Alaska, Texas, and Namibia.
Project Phoenix, in Alaska, remains a primary focus.
The Hickory-1 discovery well, which was drilled earlier in 2023, underwent flow testing during the Alaskan winter. The tests focused on two primary targets within the Upper Slope Fan System (USFS) and the SMD-B reservoirs, both yielding promising results.
"The USFS produced at a peak flow rate of ~70 bopd. Oil cuts increased throughout the flow back period as the well continued to clean up, reaching a maximum of 15% oil cut," the company noted in the statement.
The successful outcomes has established a platform for monetising Project Phoenix, it added whilst highlighting that further advancements planned, including the development of a potential capital-light modular Early Production System.
Elsewhere, Project Leonis is said have shown significant potential, with a maiden internal Prospective Resource estimate of 381 million barrels of recoverable oil in the newly identified Tiri Prospect.
The company has engaged Fairweather LLC for planning and permitting the Tiri-1 exploration well, which is expected to drill the Tiri Prospect in the Upper Schrader Bluff Formation.
In Texas, Project Longhorn saw a series of workovers that increased production, though output was below initial forecasts. Despite this, the project continues to provide strong cash flows, contributing A$1.2 million to the company during the first half of 2024.e
Meanwhile, in Namibia, 88 Energy has a 20% working interest in the PEL 93 license, following the successful completion of a farm-in agreement. The project area is considered highly prospective, with significant exploration potential identified.
During the first half, the company also completed an oversubscribed share placement, raising A$9.7 million to fund ongoing and upcoming activities, including further development of Project Phoenix and Project Leonis.