Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
88 Energy Ltd on Monday celebrated the discovery of a new reservoir, as it completed drilling at the Hickory-1 exploration well to a total depth of 10,650 feet.
The Australia-based, Alaska-focused oil explorer said that the SFS reservoir had exceeded pre-drill expectations for both thickness and reservoir quality, identifying multiple potential hydrocarbon bearing zones.
The good news saw shares rise 20% to 0.60 pence each in London on Monday.
88 Energy also told investors that it has identified a new Upper SFS reservoir, not previously intersected by nearby wells, with abundant oil shows in cuttings. The BFF reservoir, meanwhile, was consistent with pre-drill expectations.
Operations have progressed as planned since the completion of the surface hole, with the Nordic Calista Rig-2 drilling to target depth safely at an estimated cost of less than $13.5 million gross.
88 Energy will now run a wireline logging programme to confirm the initial petrophysical interpretation of multiple pay zones identified during drilling, and obtain data to optimally design and plan the flow test of Hickory-1.
This is expected to take between five and seven days. All operations and demobilisations should complete by mid-April.
Copyright 2023 Alliance News Ltd. All Rights Reserved.