SYDNEY - 88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF), an oil and gas exploration company, has announced progress on its Project Phoenix in Alaska, including developments with its joint venture partner Burgundy Xploration, LLC. The company provided an update on the project's advancement towards the CY25/26 work program, which includes a horizontal test well targeting the SMD-B reservoir.
Burgundy has fulfilled part of its financial commitment to Project Phoenix by paying US$1 million of a US$4 million cash call. The remaining US$3 million is expected to be settled by 15 February 2025, with Burgundy expressing its intention to fully carry the CY25/26 work program in exchange for additional working interest from 88 Energy.
The planning and design for an extended horizontal well flow test at the Franklin Bluffs gravel pad are moving forward as part of the de-risking efforts for Project Phoenix. This activity aligns with potential farm-out opportunities and associated carry.
Adjacent to Project Phoenix, Pantheon Resources LLC (AIM:PANR) has completed its Megrez-1 well, reaching the targeted depth and installing production casing for an extended well test scheduled for early 2025. Success in this test could enhance the regional understanding of oil and gas accumulations and the potential for commercialization of projects in the area, including Project Phoenix.
The recent acquisition by 88 Energy of four lease blocks adjacent to the existing Project Leonis leases highlights the region's exploration potential and attractiveness for future development. This is further emphasized by the entry of a new market participant acquiring a significant holding near Project Phoenix.
Ashley Gilbert, Managing Director of 88 Energy, commented on the project's progress, emphasizing the importance of advancing Project Phoenix towards commercialization and the confidence in the ongoing partnership with Burgundy.
88 Energy also noted that there is no new information that materially affects the previously released market announcement regarding the project's contingent resource estimate of net 239 million barrels of oil and natural gas liquids.
The announcement of Project Phoenix's progress is based on a press release statement and reflects the company's current plans and commitments. It is a key update for investors monitoring the developments of 88 Energy and the oil and gas exploration activities on the Alaskan North Slope.
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