88 Energy Share News (88E)

(Sharecast News) - 88 Energy updated the market on its Hickory-1 flow testing programme and post-well analysis on Friday, reporting that it was planning to conduct flow tests on multiple zones within the Hickory-1 well, with all zones expected to yield positive results based on reservoir characteristics.

The AIM-traded firm said the permitting and planning process for the flow testing programme had started, with 88 Energy aiming to begin testing as early as possible during the 2023-2024 Alaskan winter operational season.

It said it was also in the final stages of selecting a rig for the Hickory-1 flow tests, with a decision expected to be made soon.

In addition to the flow testing programme, 88 Energy said it was conducting a comprehensive post-well analysis of cores, mud gas isotubes, and wireline data.

The analysis was still ongoing, but the board said the initial results were promising.

It said there was a strong correlation between the data obtained and the migration and thermal maturity models for Project Phoenix.

The upcoming flow testing programme was aiming to assess the productivity and commercial viability of the various zones in the Hickory-1 well.

It said the positive reservoir characteristics indicated that all zones were expected to produce favourable flow rates.

The company said it was a significant development for 88 Energy as it continued to explore and evaluate the potential of the Project Phoenix area.

"Programme planning is on schedule and will include rigorous technical and economic optimisation prior to finalisation," the 88 Energy board said in its statement.

"Rig selection and contract negotiation is expected to be concluded imminently and key long lead items required are being ordered."

At 1513 BST, shares in 88 Energy were down 4.43% at 0.36p.

Reporting by Josh White for Sharecast.com.