88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has highlighted that the analysis on the so far successful Hickory exploration well, onshore Alaska, has met or exceeded its pre-drill aims and was completed on budget.
The Hickory-1 exploration well was spudded on 9 March and reached a total depth of 10,650 feet, with initial findings confirming the presence of multiple hydrocarbon-bearing pay zones across all of the explorer’s pre-drill targets.
One additional target, not previously intersected in the burgeoning oil play was also encountered.
88 Energy, in its statutory quarterly activities report, told investors that it has estimated net pay (based on wireline data) at approximately 450 feet over all pay zones, with total porosity ranging from 9-12%.
Hickory-1 was subsequently cased and suspended, and, the explorer kicked off the planning effort for a flow testing programme that will take place during the 2023/2024 winter season.
88 Energy, meanwhile, noted that it also completed the adjudication process for Project Leonis, with formal award notices issued by the Alaskan Department of Natural Resources. An integrated petrophysical and seismic study is underway, including reprocessing of Storms 3D data.
Project Longhorn, in Texas, saw an average production of 425 barrels oil equivalent per day gross (72% oil) over the quarter. A quarterly cash flow distribution of AU$0.3mln was received in March 2023, net of final CAPEX payments for the two workovers completed in Q4 2022.
88 Energy completed a share placement on 6 February 2023, raising gross proceeds of AU$17.5mln. The company reported a cash balance of AU$26.3mln and zero debt as of 31 March 2023.