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Providing coverage of Alaska and northern Canada's oil and gas industry
March 2024

Vol. 29, No.11 Week of March 17, 2024

Hickory-1 well operations have begun on Alaska's North Slope

Kay Cashman

Petroleum News

On March 11, Australia-based 88 Energy Ltd. released an ASX announcement, saying Hickory-1 well operations have commenced, with well bore preparations complete and perforation of the Upper SFS zone to begin ahead of perforating, fracking and flow testing the Upper SFS zone. Hickory-1 was drilled but not tested last winter.

(See map in the online issue PDF)

Two flow tests are scheduled, one each in the Upper SFS and SMD-B reservoirs, with each frac and flowback operation expected to take approximately 10 days.

88 Energy said it has strengthened its technical advisory team to include additional engineering expertise, as well as experienced members of the Pantheon Resources Great Bear team being available to share their relevant recent and extensive knowledge of multiple flow tests on adjacent acreage.

Results from the Upper SFS reservoir will be available on completion of flow back activities, 88 Energy said.

The Hickory-1 well is located within 88 Energy's Project Phoenix acreage, directly adjacent to the Trans-Alaska Pipeline System and the Dalton Highway.

The Upper SFS will be the first zone tested followed by the SMD-B zone. Each zone will be independently isolated, stimulated and flowed to surface using nitrogen lift to assist in the efficient clean-up of the well.

Although as mentioned the entire program for each zone is expected to take approximately 10 days, 88 Energy may choose to adjust the schedule during the flow back program to ensure optimal data collection.

Extensive suite

An extensive suite of data will be captured, including but not limited to downhole and surface fluid samples, downhole pressure and temperature data, surface pressure and temperature data. Flow rates of oil, gas and water will also be recorded.

The entire testing program is scheduled for completion during March 2024.

The March 10 announcement was authorized by the company's board, including Ashley Gilbert, Managing Director.

Approval on Nov. 30

As reported in the Dec. 10 issue of Petroleum News, on Nov. 30, an operating subsidiary of 88 Energy received approval for the Toolik River unit, Hickory 1, frac and flow testing unit plan of operations amendment from the Alaska Department of Natural Resources' Division of Oil and Gas.

The Toolik River unit or TRU, is approximately 30 miles south of Deadhorse in oil and gas lease 392314.

88 Energy planned to build a 500-foot by 500-foot ice pad connected to the Dalton Highway by a 400-foot by 35-foot ice road, with a total footprint of approximately six acres.

All buildings used for the project were to be temporary.

Ultra-low sulfur diesel fuel will be trucked to the project site by commercial carriers and stored in four 9,980-gallon tanks on pad as needed to support operations.

Spill response equipment will be staged on location and managed by an onsite spill technician contracted through Alaska Chadux Corp.

Stick picking and site inspection will occur during the following summer.

Tundra travel and ice construction will be permitted separately through LAS 34367.

Plan activities include the following:

*Construct ice pad and driveway

*Re-enter Hickory 1 well

*Frac and flow tests

*Stick picking

*Closeout site inspections

The Nov. 30 approval letter was addressed to Gilbert.

Pantheon: Talitha, Alkaid

In an Oct. 12, 2023, ASX release, 88 Energy said it remains very encouraged by the progress of its neighbor to the north of Project Phoenix, Pantheon Resources (operated by Great Bear), which recently announced a "material, independently certified contingent resource for the Lower Basin Floor Fan, or BFF, reservoir," noting that the BFF reservoir was the deepest of the multiple hydrocarbon-bearing pay zones intersected as part of the Hickory-1 exploration well.

Four of the wells drilled in 2022 were drilled by Great Bear Pantheon. The company completed the Alkaid 2 well in its Alkaid discovery, together with a near vertical pilot hole for that well. The company also drilled a pilot hole in its Talitha prospect and drilled its Theta West 1 exploration well. All of these wells were drilled near the Dalton Highway, south of Prudhoe Bay.

--KAY CASHMAN






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