Key facts about 88 Energy's Hickory-1 flow testing

88 Energy Limited (ASX: $88E) has successfully confirmed the discovery of light oil at the Hickory-1 well in Project Phoenix on the North Slope of Alaska. The flow testing of the Upper SFS reservoir has yielded over 70 barrels of oil per day (bopd) of light oil, along with marketable natural gas liquids (NGLs) and associated gas. The company will now seek an Independent Contingent Resource declaration for both the Upper SFS and Lower SFS reservoirs based on the flow of hydrocarbons to the surface.

Executive commentary on the flow testing results

Outcomes from this test represent a significant milestone for 88 Energy and its shareholders, with the first successful flow of oil to surface achieved at the Company's Alaska projects. The completion of flow testing in this zone and recovery to surface of light oil, in addition to NGLs and associated gas, confirms our understanding of the substantial potential of these reservoirs. Significantly, these flow rates were achieved from only a 20ft perforated section in a vertical well with a low volume stimulation over a short period. As previously highlighted, production rates in long horizontal production wells are typically multiples of 6 to 12 times higher than tested in vertical wells, as evidenced in many Lower 48 analogues. Importantly, the Upper SFS zone had not previously been intersected or tested at either Project Phoenix or on adjacent acreage. It is particularly exciting for us to produce oil to surface and demonstrate the producibility of this additionally discovered reservoir. Future plans for the assessment of the commerciality of Project Phoenix will be communicated post analysis of the Hickory-1 program. We will now proceed to undertake flow testing of the shallower SMD-B reservoir over the coming weeks. This is a zone which has previously been successfully tested on adjacent acreage to the north. We look forward to continuing to update shareholders on the progress of our Hickory-1 flow testing operations.

Summary of the flow testing results and future plans

The flow testing of the Upper SFS reservoir at Hickory-1 has confirmed the presence of light oil, NGLs, and associated gas, marking a significant milestone for 88 Energy. The company will seek an Independent Contingent Resource declaration for both the Upper SFS and Lower SFS reservoirs based on the flow of hydrocarbons to the surface. Additionally, plans to undertake flow testing of the shallower SMD-B reservoir over the coming weeks are in place. The successful flow testing results indicate the substantial potential of the discovered reservoirs, and the company aims to communicate future plans for the assessment of the commerciality of Project Phoenix post analysis of the Hickory-1 program.