- 88 Energy Limited had received multiple bids for the farm-out process at Project Peregrine and had witnessed strong interest from the parties.
- 88E has now selected a preferred bidder, and preparation of final documentation is progressing well underway.
- 88E looks forward to working closely with the preferred bidder to finalise the transaction within the current week and set the drill program in motion.
- Previously, 88E had finalised the review of amplitude vs offset studies (AVO) conducted at the Peregrine project and received highly encouraging results.
Oil and gas exploration company, 88 Energy Limited (ASX:88E) has been seeking to finalise the farm-out at its Project Peregrine located on the North Slope of Alaska.
Farm-Out Process Gains Pace to Reach Final Phase
Recently, the progress at the project regarding its farm-out has gained significant pace and has reached the concluding phase with the finalisation of the preferred bidder. Moreover, the farm-out process now remains subject only to finalisation of standard documentation.
Further, the Company received strong interest from multiple parties in the opportunity to bid for the project, and the 88E received competitive bids for the project. 88E now expects execution of the final documents in the next few weeks.
Further, 88E remains on track with the progress on planning and permitting front, and the spud of the first well at Project Peregrine is scheduled for a late February 2021.
88E is encouraged by the participation of interested parties in the bidding for Project Peregrine, which validates the quality of the opportunity and the exceptional job done by the 88E team over the last few months at the project.
88E’s data room remained open for several weeks, and numerous parties reached various stages of technical due diligence in the process of farm-out. Moreover, several participants moved to the stage of commercial discussions.
Now, 88E looks forward to drilling two wells at the Project Peregrine through future drilling (scheduled to commence in the first quarter of 2021). Moreover, 88E plans to work closely with the bidder to finalise the transaction and move ahead with the drill program.
Amplitude Vs Offset Studies (AVO) Reveal Highly Encouraging Results
Previously, 88E had concluded the review of amplitude vs offset studies (AVO) conducted at the Peregrine project and received highly encouraging results. In addition to this, the potential for observing similar attributes at the Merlin and Harrier prospects at the Project Peregrine are supported by the calibration of the studies to the current Willow oil field.
Interestingly, the signatures observed, especially for Fluid Factor, resemble the ones at the Willow oil field and the Merlin and Harrier prospects.
Project Peregrine Potential
Project Peregrine is located between major oil discoveries at Willow to the North and Umiat to the South with 1.6 billion barrels mean prospective resource across three prospects. Two of the three prospects totalling >1 billion barrels are located on-trend to present recent discoveries and are scheduled for testing through drilling in 2021.
Moreover, 88E’s Harrier and Merlin prospects interpreted to be on-trend with similar seismic signatures to COP’s Harpoon and Willow discoveries, respectively. As a result, 88E is optimistic that the chances of success are relatively high, notwithstanding the mapping on 2D seismic only.
All in all, 88E is driven by the aim to transform into a successful exploration and production company while generating significant benefits to its shareholders.
88E share price remained unchanged at $0.006 with a market capitalisation of $53.61 million on 09 November 2020.