- 88 Energy has completed the acquisition of 50% working interest in Project Peregrine from APDC.
- 88E has issued 633,457,196 shares to APDC in exchange for the acquired interest, and no further shares are required to be issued.
- The acquisition of the interest is considered to be in the best interest of 88E as well as APDC.
Aggressive Alaska focused explorer 88 Energy Limited (ASX:88E) has been on a spree of developments that reflect upon the Company’s commitment to delivering significant benefits to its shareholders.
88E holds 100% working interest in Project Peregrine
The latest key developments include the drilling at Merlin-1 well and the encouraging results indicating the presence of hydrocarbons, adoption of the ESF framework, full repayment of the debt, and the agreement to acquire 50% working interest in Project Peregrine from Alaska Peregrine Development Company, LLC (APDC).
Project Peregrine and Recent Nanushuk Discoveries (Source: 88E Announcement 07/06/2021)
In continuation to the agreement to acquire an interest in Project Peregrine, 88E has acquired the working interest in Project Peregrine and now hold complete control over the project.
To this end, 88E has issued 633,457,196 shares, which is 190,634,537 less than those originally proposed. This is because the shares were issued in multiple tranches and were subject to a final reconciliation mechanism.
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Therefore, no additional shares are required to be issued under the agreement as full upfront consideration has been made to APDC in exchange for its 50% working interest in the project. Also, all outstanding cash calls due pertaining to the Merlin-1 well have also been met by APDC.
Acquisition to deliver value for both parties
Both 88E and APDC have had a detailed engagement regarding the planned upcoming program at the Project Peregrine. Subsequent to this, both the parties reached the agreement that the acquisition of APDC’s interest in the project by 88E shall be in the best interest of both parties.
Various reasons for the acquisition of the interest include the following:
Rationale behind the acquisition (Data Source: 88E Announcement 07/06/2021)
The Project Peregrine indicates a significant opportunity for the 88E as exploration work at Merlin-1 has returned significant results. The Company also has plans to initiate work at the Harrier-1 prospect in the coming times.
The current acquisition combined with the previously acquired neighbouring Umiat Oil Field indicates a significant potential for 88E to generate value for the Company as well as the stakeholders.
Subsequent to the announcement, the 88E stock was noted at AU$0.037, up by 8.823% on 15 July 2021, whereas 88E closed at AU$0.035 on 19 July 2021.