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."