88 ENERGY LIMITED 88 Energy Limited announced successful flow testing of the Upper SFS reservoir in the company's hickory-1 discovery well, located in project phoenix on the north slope of Alaska (88 energy ~75% wi owner). Upper SFS flow test results: A 20ft perforated interval in the Upper SFS reservoir was stimulated via a single fracture stage of 241,611 lbs proppant volume. The well was cleaned-up and flowed for 111 hours in total, of which 88 hours was under natural flow back and 23.5 hours utilizing nitrogen lift.
The USFS test produced at a peak flow rate of over ~70 bopd. Oil cuts increased throughout the flow back period as the well cleaned up, reaching a maximum of 15% oil cut at the end of the flow test program. Oil rates and cut would have likely increased further should the test period have continued.
The well produced at an average oil flow rate of approximately 42 bopd during the natural flow back period, with instantaneous rates ranging from approximately 10bopd to 77 bopd with average rates increasing through the test period. Importantly, the USFS zone flowed oil to surface under natural flow, with flow back from other reservoirs in adjacent offset wells only producing under nitrogen lift. A total of 3,960 bbls of fluid was injected into the reservoir and 2,882bbls of water was recovered during the flow back period, most of which being injection fluid.
Total flow rates (inclusive of recovery of frac fluid) averaged ~600 bbl/d over the duration of the flow back. Multiple oil samples were recovered with measured oil gravities of between 39.9 to 41.4 API (representing a light crude oil). Additionally, some NGLs were produced but not measured, as was anticipated in the planning phase.
The presence of NGLs was demonstrated by samples from the flare line and by visible black smoke in the flare. Historically, NGL prices on the North Slope of Alaska have been similar or slightly below light oil prices and are therefore considered highly valuable. Further work is required to quantify the exact volume of NGLs, which 88 Energy intends to include as part of a maiden certified Contingent Resource assessment at Project Phoenix for the SFS reservoirs.
