88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it is now undertaking post flow test studies for the Hickory-1 well in Alaska, with a view to upgrading estimates of contingent resources.
At the same time, it is progressing commercialisation options for the project.
This will include a farm-out process aimed at bringing in a strategic development partner and a potential early/capital-lite development of the field.
Well testing confirmed oil flows from the USFS and SMD-B reservoirs. Hickory was notably a vertical well and future production wells will be horizontal, so the company expects future volumes will be several multiples higher.
In the Upper SFS (USFS) reservoir, the well tested a 20-foot interval. Production testing yielded a peak flow rate of over 70 barrels of oil per day, with the oil quality measured at 39.9 to 41.4 API, light crude oil.
Testing SMD-B gave a calculated peak rate of 50 bopd, with 38.5 to 39.5 API light crude oil.
In a statement earlier this week, 88 Energy told investors that its intended development plan would see the field established using ‘long horizontal wells’ which would deliver production “typically at multiples of between 6 to 12 times higher than vertical wells".