The statement provided by 88 Energy Limited on the flow testing...

The statement provided by 88 Energy Limited on the flow testing of the Upper SFS (USFS) reservoir in their Hickory-1 discovery well reveals several important highlights and insights into the exploration and development activities of the company on the North Slope of Alaska. Here's an analysis of the key points:

1. Light Oil Discovery Confirmation: The successful flow testing of the Upper SFS reservoir at the Hickory-1 well has confirmed the discovery of light oil. The achievement of flow rates from a low volume frac over a small 20ft vertical interval aligns with expectations and mirrors results from other reservoirs on adjacent acreage.

2. Peak Gauge Flow Rate: The test produced over 70 barrels of oil per day (bopd) of light oil, with oil samples measuring approximately 40-degree API gravity. This indicates a high-quality light crude oil, which is generally more desirable in the market due to its ease of refining.

3. Quality and Deliverability: The USFS reservoir's quality and deliverability have been confirmed through the production of oil to the surface under natural flow. The test also indicated the presence of marketable natural gas liquids (NGLs) and associated gas, enhancing the value of the discovery.

4. Independent Contingent Resource Declaration: The company plans to seek an Independent Contingent Resource declaration for both the Upper and Lower SFS reservoirs, suggesting confidence in the commercial viability of these discoveries.

5. Future Testing and Development Plans: Flow testing operations are transitioning to the shallower SMD-B reservoir. This staged testing approach, along with the anticipation of future development plans, demonstrates a systematic and strategic approach to evaluating and exploiting the reservoirs at Hickory-1.

6. Operational and Technical Details: The detailed operational and technical data provided, including the use of a single fracture stage, the volume of proppant used, and the recovery of fluids, offers transparency into the testing process and the reservoir's performance. The information on choke sizes, flow rates, and pressures provides insights into the well's management during the testing phase.

7. Strategic Significance: The statement from Ashley Gilbert, Managing Director of 88 Energy, underscores the strategic significance of these results for the company. The first successful flow of oil to the surface at the company's Alaska projects marks a milestone and reinforces the potential of the Hickory-1 well and adjacent acreage.

8. Regulatory and Technical Compliance: The inclusion of compliance with ASX Listing Rules and the AIM Rules for Companies, along with the involvement of Dr. Stephen Staley for technical oversight, emphasizes the company's commitment to regulatory standards and technical integrity in reporting exploration and drilling results.

In summary, the statement highlights a significant advancement in 88 Energy Limited's exploration efforts on the North Slope of Alaska. The confirmation of light oil discovery, coupled with the detailed technical and operational insights, sets a positive tone for the company's future activities and potential for commercial exploitation. The planned progression to testing other reservoirs and the anticipation of further updates suggest ongoing development and exploration efforts by 88 Energy in the region.