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88 Energy Ltd on Monday said it was making progress at a number of its projects, including the Hickory-1 well at its Icewine site, following encouraging results from initial independent resource analysis.
For the three months ended September 30, the Australia-based, Alaska-focused oil explorer reported a maiden, independently certified prospective resource estimate for project Icewine East of a total of 1.03 billion barrels of oil, recoverable from multiple reservoir zones.
Substantial oil volumes were also noted across all mapped play fairways, particularly the Seabee Lower Basin Floor and the Shelf Margin Delta reservoirs.
88 Energy also said it has chosen the drilling location for the Hickory-1 well site, which will test a number of reservoir units. Planning and permitting for drilling of Hickory-1 is underway.
At the Peregrine project, the company said it had received "encouraging" results from the completion of an independent basin modelling study for the untested Harrier and Harrier Deep prospects.
It found definitive evidence of hydrocarbons from high resolution gas chromatography performed on the side wall cores of the Merlin-2 well.
At project Longhorn, 88 Energy successfully completed the fourth planned work-over out of seven scheduled this year. Production began at the end of August, and a quarterly cash flow distribution of A$900,000, around £502,110, was received in September.
The company successfully completed the fifth-workover after the end of the quarter, with first production achieved in October 2022. It said it was unlikely that it would proceed with the sixth, as preliminary well bore integrity investigations revealed that operations were likely to exceed its authorisation for expenditure and not be risk-free.
In other news, a share placement completed on August 22 raised gross proceeds of A$14.9 million, around £8.3 million.
At September 30, 88 Energy reported cash of AUD 17.5 million, around £9.8 million, and no debt.
88 Energy shares were down 0.7% at 0.50 pence each in London on Monday afternoon.
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