88 Energy (ASX:88E, 88E.L) is doing a good job in keeping its shareholders up-to-date on its progress in Alaska where it’s drilling a new well to test the flow rates of its unconventional oil discovery.
The company has now demobilized the Arctic Fox drill rig after the well has been completed, and the stimulation of the well is expected to start in about ten days with production testing scheduled to start by the end of this month or early July. Long story short, everything remains on track, but what caught our attention in 88 Energy’s update was the following sentence:
Additionally, insights have been gained into the stress profile and pore pressure of the HRZ, which appears higher than previously expected. This can have a direct effect on potentially higher flow rates.
The market seems to have reacted ecstatic about this update, and deservedly so. Keep in mind the typical flow rate of a vertical well at a shale operation is approximately 80-150 barrels of oil per day, and a higher vertical flow rate should have a positive impact on the flow rates of the potential horizontal wells as well.
88 Energy is nearing the end game for its unconventional oil plans, and we will know much more in just one month.
Go to 88 Energy’s website
The author has a long position in 88 Energy. 88 Energy is not a sponsor of the website, but we were compensated by a third party for coverage. Please read the disclaimer
