88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has successfully intersected the first three of its reservoir targets in the Hickory well onshore Alaska, with well data indicating the presence of hydrocarbons.
The company, in a statement, said that the drilling had reached around 8,820 feet and had so far encountered all three of the ‘SMD’ reservoir targets (SMD-A, B and C).
It said that it saw oil shows, elevated mud gas readings along with other data indicators which suggest potential hydrocarbon pay.
Drilling will now continue down through the remaining reservoir targets, down to around 11,000 feet, which is expected to take another three to five days of drilling.
Providing additional details on the findings to date, 88 added: “All three primary SMD reservoir targets were intersected slightly shallower than prognosed depths, with reservoir thicknesses consistent with pre-drill interpretation.
“Logging-while-drilling data collected over the primary targets has indicated potential hydrocarbon pay that will be further assessed by the wireline logging and coring program. This program is set to commence immediately after the well reaches total depth.”
It added that due to the early results from the well’s primary targets, the SMD reservoirs, and with a view to preserving the well’s bore hole, the company now intends to complete the well at a shallower depth after the secondary targets (SFS and BFF reservoirs) and before drilling reaches the tertiary Kuparuk (KUP) reservoir target which will now be assessed later, after well testing has taken place.
88 Energy expects that any flow testing of the Hickory well will take place in the 2023/24 Alaskan winter operational season.