A snapshot of 88 Energy’s (ASX:88E) March quarter activities across 4 key projects

Highlights

• 88 Energy raised A$32.1 million in an oversubscribed share placement in February 2022.
• The company commenced trading on the US OTCQB market under code EEENF.
• At Project Longhorn, the production rate surpassed 400 BOE gross per day (~70% oil) at the end of March.
• 88E is advancing discussions with potential farm-in parties into Project Icewine and has scheduled an independent resource update for Q2 2022.

88 Energy Limited (ASX:88E) has shared its progress over the recent quarter ended 31 March 2022. The Company has reported an array of developments across its key projects, namely – Project Peregrine, Project Longhorn, Project Icewine, and Umiat Oil field.

A major highlight of the quarter came in January this year when 88E commenced trading on the US OTCQB Market under the code EEENF. The development gave the company access to one of the largest investment markets worldwide at a relatively nominal cost.

What’s more, 88E also raised AU$32.1 million in an oversubscribed bookbuild to domestic and international institutional investors.

Progress at Project Peregrine

88E drilled the Merlin-2 appraisal well to a total depth of 7,334 feet in March 2022 before ceasing the operation. The Nanushuk targets, namely N20, N19 and N18, were penetrated, and Logging While Drilling (LWD) data and physical cuttings were also collected.

88E believes that the results of Merlin-2 are significantly consistent with the Merlin-1 exploration well, which was drilled in 2021.

Source: 88E Announcement 17/03/22

88E now looks to assess the advantages of a 3D seismic acquisition program in the future, allowing modern data processing at future drilling locations for optimally testing and evaluating the possible commerciality of the Project Peregrine acreage.

Moreover, the company plans to execute a detailed analysis of all data secured from the Merlin-2 drilling program and assess activities for possible future appraisal within the Project Peregrine acreage.

Acquisition of Project Longhorn

The March quarter saw 88E executing a binding Securities Purchase Agreement (SPA) for acquiring a ~73% average net-working interest in Project Longhorn, which comprises established conventional oil & gas production assets in the proven Permian Basin, onshore Texas, United States.

This acquisition indicates the company’s maiden move towards producing oil & gas assets and is aligned with its strategy to build a successful oil & gas exploration and production company.

Source: 88E Announcement 12/04/22

Lonestar I, LLC, the operator of the Longhorn production assets, successfully completed the first planned capital-efficient work-over in March 2022. The work-over has been completed on time and within budget limits, boosting the total oil & gas production rates of the project.

The targeted seven capital development activities are expected to be completed this year, which would further nearly double the production rates by the end of CY2022.

RELATED ARTICLE: What is inside the SPA signed by 88 Energy (ASX:88E)?

Key works at Project Icewine

Subsequent to the drilling results of the Talitha-A well in Q1 2021, 88E is progressing well with the assessment of the SMD, SFS and BFF play fairways at Project Icewine. Initial independent third-party mapping has highlighted that that all play fairways extend into the lease holding of the project.

88 Energy believes that the confirmation of the reservoir deliverability of light, sweet oil by Pantheon Resources is favourable for the prospectivity of the adjacent Project Icewine acreage.

TO KNOW MORE: 88 Energy (ASX:88E) riding high on Project Icewine update

Source: 88E Announcement 08/04/22

Currently, 88E is finalising mapping of the SFS and BFF play fairways onto the Icewine acreage, which is anticipated to conclude in April 2022. Once completed, the mapping of the three prospects together would form the basis for an updated resource estimate at Project Icewine, slated for finalisation in Q2 2022.

Opportunity at Umiat Oil Field

During the March quarter, 88E continued development studies at the Umiat Oil Field with focus on the possible integration of Ultra Low Sulphur Diesel (ULSD) production with earlier studies. Taking into account the high cost of diesel on the North Slope of Alaska, the preliminary screening economics indicate that this development option offers further value to an upcoming Umiat development.

88E also concluded a performance review of a separate Umiat-23H well, which was drilled by a previous owner in 2014. The review suggests significant underperformance of the well due to poor drilling and completion techniques.

RELATED ARTICLE: Eyes on Alaska well, 88 Energy (ASX:88E) makes serious strides in December quarter

88E shares were trading at AU$0.015 in the early hours of 26 April 2022.