88 Energy expanding with fresh opportunity as it consolidates XCD

What it owns

88 Energy Ltd (LON:88E) is being expanded and repackaged through a merger with fellow Aussie listed, Alaska focussed explorer XCD Energy Ltd.

A paper transaction sees the creation of an explorer with a diversified portfolio on Alaskas North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.

It will have improved scale, market presence and funding capability, and share liquidity, according to AIM and ASX listed 88 Energy.

The new company will leverage 88 Energys geological and operational expertise, specific to the North Slope of Alaska – where it has drilled four wells and acquired several 2D and 3D seismic data.

Significantly, the adds fresh drilling opportunities which promise catalysts whilst 88 Energy continues to work on the progression of the existing discoveries, conventional and unconventional, which require further appraisal and de-risking works.

The new opportunities are in XCDs Peregrine area. In May, this acreage was further bolstered by an updated evaluation by consultant ERC Equipoise (ERCE) which outlined 1.63bn barrels of mean prospective resources across three targets – Merlin, Harrier, and Harrier Deep.

In the recommended takeover of XCD, pitched at around A$7.5mln, 88 Energy will issue 2.4 new 88 Energy shares and 0.7 for every listed XCD share option held – an improved offer from 1.67 per share and 0.5 per option.

The existing portfolio:

Project Icewine, Alaska

The operator on the majority of 528,000 contiguous acres onshore Alaska in proven oil province, of which 349,000 acres are net to 88 Energy through a 66% working interest, a 10-year leasehold and16.5% royalty

The opportunity comprises unconventional acreage and conventional opportunity on the North Slope

Yukon Gold, Alaska

The recent award of 14,194 acres (100% 88 Energy); Contains historic oil discovery assessing 3D seismic

Western Blocks, Alaska

88 Energy Limited (LON:88E) earning 36% by paying 40% of costs for a commitment well on a 400MMbbl prospect; adjacent to recent discoveries

How it's doing

In May, 88 Energy suggested there may be more to unlock at the Charlie project – following the departure of former partner Premier Oil PLC (LON:PMO).

In an operations update, the explorer highlighted what it called “compelling” indications of oil in an up-dip location from the Charlie well location. Moreover, it commented that it had originally planned to drill the Charlie well somewhere else before Premier Oil joined the exploration campaign.

Charlie-1 encountered a large condensate discovery and its primary oil target was found to be poorly developed in that location. Samples were takenRead More – Source

[contf] [contfnew]


[contfnewc] [contfnewc]

Related Articles

Back to top button