88 Energy Ltd. identified 2024 activities in Namibia, Alaska, and the Permian basin in its 2023 fourth-quarter report.
The company executed a farm-in agreement with Monitor Exploration Ltd. to earn up to a 45% non-operated working interest in onshore Petroleum Exploration License 93 (PEL 93) in Namibia. The farm-in provides a three-stage entry into PEL 93 with an 18,500 sq km onshore acreage position comprising Blocks 1717 and 1817 in Owambo basin. In first quarter 2024, a 20% working interest is anticipated to be transferred to 88 Energy by Monitor following approval by Namibian Ministry of Mines and Energy.
In Alaska, 88 Energy Ltd. will flow test the Hickory-1 discovery well in Project Phoenix after ice road and pad construction in early February and rig mobilization in mid-February. The testing operations will focus on the two primary targets, the Slope Fan System (SFS) and Shelf Margin Deltaic (SMD) reservoirs. Each zone will be independently isolated, stimulated, and flowed to surface using nitrogen lift to assist in an efficient clean-up of the well. Perforation, completion-running, and stimulation is expected to take about 4 days for each zone. This will be followed by a clean-up and flow period of up to 4 days and a pressure build-up of up to 2 days for each tested zone. 88 Energy has 75% working interest in Project Pheonix with JV partner Burgundy Xploration holding the remaining 25%.
The Bureau of Land Management Alaska (BLM) approved a 12-month suspension of Project Peregrine leases from Dec. 1, 2023, following discussions during the quarter regarding proposed new regulations governing the management of surface resources in the National Petroleum Reserve-A (NPR-A). During the suspension period, 88 Energy will continue to refine internal geological and geophysical models and interpretation. 88 Energy has 100% working interest in Project Peregrine.
In the Permian basin, the company acquired further non-operated working interest in leases and wells in its Bighorn Phase 3 development. The acquisition included about a 64% net working interest in 1,262 acres 0.5 miles south and 0.25 miles north of existing Project Longhorn assets connecting the acreage position. Nine low-producing existing wells (about 26 boe/d gross) and ten development opportunities were identified in multiple zones estimated to have 1.2 MMboe gross undeveloped 2P reserves.
Project Longhorn expects to have five workover wells completed in first-half 2024 followed by potentially two new production wells in second-half 2024. Upon successful completion of the workovers and new wells across the acreage, together with existing producing wells, 88 Energy expects Longhorn total gross production to reach about 600 – 675 boe/d (~75% oil) by yearend 2024.