88 Energy, an Alaska-focused hydrocarbon explorer, issued an activities and trading update for the 6 months ended June 30, 2024. During the period, 88E continued its principal exploration activates in Alaska, complemented by its 75%-owned onshore Texas Permian Basin asset and 20%-owned PEL 93 license in onshore Namibia.
At 88E’s flagship Project Phoenix (75% WI) on Alaska’s North Slope, the new Hickory-1 discovery well was flow tested during the Alaskan winter season in Q1/Q2 CY24. Two tests were conducted, one each for the Upper SFS and SMD-B reservoirs (see map below). The USFS reservoir produced at a peak flow rate of 70 bopd of light oil with c. 40-degree API oil gravity under natural flow, while the SMD-B reservoir registered a peak flow rate of 50 bopd of light oil with c. 39-degree API oil gravity under nitrogen lift.
Following the successful tests, pressured oil samples from both reservoirs were sent to a lab in Houston, TX for analysis, with results expected in Q3 CY24. The results will confirm reservoir fluid characteristics. Subsequently, an independent contingent resource assessment for the reservoirs is expected in Q4 CY24.
At adjacent Project Leonis (100% WI), 88E established a maiden prospective resource estimate of 381 million barrels (MMbbls) of oil, recoverable from the Upper Schrader Bluff (USB) formation. Permitting and planning is underway for a new Tiri-1 exploration well, designed to test the Tiri prospect in the USB formation. A farm-out process is also underway to secure a partner ahead of drilling Tiri-1 in 2026.
In Namibia, 88 completed a 2D seismic acquisition programme at PEL 93 (20% WI), successfully acquiring 203-line km of data. Processing is ongoing, both in the field and at Earth Signal Processing in Calgary, with final interpretation expected by Q4 2024. The programme aims to deliver a maiden prospective resource estimate, 10 independent structural closures, and future potential drilling locations targeting the Damara play.