88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has now executed a rig contract for well testing, on the Hickory-1 well at its Project Phoenix.
Hickory-1 was drilled earlier this year to target prospects with estimates totalling some 647 million barrels of oil, and, it encountered multiple hydrocarbon-bearing pay zones which will now be tested.
The exploration company, in a statement, said final design work is presently underway for the testing programme, and, it is on-schedule to begin the testing ‘as early as possible’ in the upcoming Alaskan winter operational season.
“The execution of a rig contract is another important step,” said chief executive Ashley Gilbert.
"We continue to be very encouraged by progress by our northern neighbour, Pantheon Resources, who recently announced a material, independently estimated, 2C contingent resource for the Lower Basin Floor Fan reservoir.3
"The Basin Floor Fan reservoir was the deepest of the multiple hydrocarbon-bearing pay zones intersected as part of the Hickory-1 exploration well.
“This reservoir, along with our primary, high-priority SMD, Upper SFS and SFS targets, is planned to be flow tested as part of the upcoming program.”
Gilbert added: "We look forward to updating shareholders as we progress to the completion of permitting and planning activities before mobilising to the well site as soon as Alaskan seasonal conditions permit."