AUS
NZ
UK
CA
USA
IND
88 Energy Limited (-88E), an oil and gas exploration company focused on Alaska and Namibia, has increased its total gross unrisked prospective resources at the South Prudhoe project by approximately 35% to 768.9 million barrels of oil equivalent in the quarter ending 30 June 2026. The company has secured a fully winterised Arctic drilling rig and a dedicated camp for the Augusta-1 exploration well, targeting a Q1 2027 spud date, while advancing a farm-out process to attract co-investors for the North Slope opportunity.
Key Points
- 88 Energy Limited (-88E) operates exploration assets across Alaska's North Slope and onshore Namibia, focusing on conventional and prospective oil discoveries.
- South Prudhoe prospective resources rose about 35% to 768.9 million barrels gross unrisked (640.7 million barrels net to 88E) after maiden Brookian resource definition.
- Augusta-1 well aims to test three stacked reservoirs—Ivishak, Kuparuk, and Upper Schrader Bluff—with a planned Q1 2027 spud, pending funding and permits.
- Secured Nordic Rig-3 Arctic-rated drilling rig and 58-person camp; South Prudhoe farm-out process progressing with multiple parties engaged in data room.
- Quarter-end cash balance stood at A$8.2 million; company raised approximately A$4.6 million net from an April 2026 placement.
- Namibia PEL 93 farm-in agreement amended to secure 88E's 20% working interest fully earned and unconditional, reducing future capital exposure by about US$15 million.
- Project Phoenix joint venture partner Burgundy Xploration LLC advanced its US listing and continues to fund 100% of Phase 1 expenditure under agreed carry.
- 88 Energy awarded 14 leases covering 34,301 net acres in the 2025 North Slope Fall bid round; lease cost approximately US$1.08 million due within 30 days.
South Prudhoe Resource Upgrade Highlights Multi-Reservoir Oil Potential
88 Energy's flagship South Prudhoe project, located just south of the prolific Prudhoe Bay and Kuparuk River fields on Alaska's North Slope, achieved a significant resource upgrade this quarter. Total gross unrisked 2U prospective resources increased by roughly 35% to 768.9 million barrels of oil, with 640.7 million barrels net to 88E's 100% working interest. The updated estimate includes two hubs: North-West Hub with 301.3 million barrels gross unrisked (251.1 million barrels net) and South-East Hub with 467.6 million barrels gross unrisked (389.7 million barrels net).
The resource growth was driven by the maiden Brookian prospective resource of 181.5 million barrels gross unrisked across West Sak and Upper Schrader Bluff intervals in the North-West Hub, alongside a 44% increase in the Ivishak prospective resource to 69.9 million barrels gross unrisked (58.2 million barrels net). This enhancement reinforces South Prudhoe as a multi-reservoir, stacked exploration opportunity with multiple stratigraphic intervals offering distinct play concepts and discovery potential within a single area.
Augusta-1 Exploration Well Progresses Toward Q1 2027 Drilling
During the quarter, 88 Energy advanced preparations for the Augusta-1 exploration well, its highest-priority near-term drilling target. Augusta-1 is designed to test three stacked reservoirs containing up to 133.7 million barrels gross unrisked 2U prospective resources (111.4 million barrels net) across Ivishak, Kuparuk, and Upper Schrader Bluff intervals. Primary targets include Ivishak with 57.5 million barrels gross unrisked (47.9 million barrels net) and Kuparuk with 23.5 million barrels gross unrisked (19.6 million barrels net), while Upper Schrader Bluff is a secondary target with 52.7 million barrels gross unrisked (43.9 million barrels net).
The company secured the Nordic Rig-3, a fully winterised Arctic-rated rig used in 2019 and 2020 campaigns, along with a dedicated Arctic-rated camp supporting 58 personnel. The drilling location is finalized, with permitting, road and facility access, logistics, and execution planning substantially advanced. Long-lead procurement and service contracting continue. The planned Q1 2027 spud remains contingent on funding, permitting, contracting, and operational readiness, with funding identified as the primary condition for execution.
South Prudhoe Farm-Out Process Engages Multiple Partners
Alongside drilling preparations, 88 Energy progressed a farm-out process to attract co-investors and secure funding for Augusta-1. Multiple parties are actively reviewing technical data and project documentation in the company's data room. This farm-out strategy aims to reduce 88E's funding burden while leveraging its 100% working interest and substantial prospective resources to attract experienced oil and gas operators.
Farm-in participation aligns with market norms for high-risk Arctic exploration wells, where drilling and logistics costs are high. By offering access to a material prospect with defined resources, upside potential, and an established operational framework, 88 Energy positions South Prudhoe as an attractive entry point for international conventional onshore exploration. Progress in pre-marketing and data room engagement during the quarter indicates significant advancement.
Kad River East Lease Secured; 3D Seismic Interpretation Underway
88 Energy gained access to the newly released Kad River 3D seismic dataset covering its approximately 17,920-acre Kad River East lease on Alaska's North Slope. This acquisition advances the Kad River East project, a longer-term exploration asset complementing South Prudhoe and Project Phoenix. Interpretation of the 3D seismic data has begun and will support prospect identification and ranking ahead of an internal prospective resource estimate targeted for H2 2026.
The technical program integrates modern seismic analysis, historical well data, and regional geology. Regional mapping has identified potential multi-reservoir prospectivity, including turbidite fairways analogous to productive North Slope fields. Historical wells nearby recorded hydrocarbon shows across multiple intervals such as Ivishak, Seabee, Canning, Kuparuk-equivalent, and Lisburne, indicating multiple exploration vectors. Post-quarter, 88 Energy received formal award notice for 14 leases totaling about 34,301 net acres in the 2025 North Slope Fall bid round—16,507 acres at South Prudhoe and 17,794 acres at Kad River East—with a lease cost of roughly US$1.08 million due within 30 days.
Project Phoenix Agreement Amended to Align with Burgundy’s US Listing
During the quarter, 88 Energy and farm-in partner Burgundy Xploration LLC amended the Project Phoenix Participation Agreement to align funding milestones with Burgundy's planned US IPO. Project Phoenix is an advanced conventional oil appraisal project on Alaska's North Slope, supported by 378 million barrels gross 2C contingent resources (239 million barrels net to 88E) across SMD, SFS, and BFF reservoirs. 88 Energy holds about a 75% working interest, focusing on appraising Franklin Bluffs through the Franklin Bluffs-1H horizontal well and production test.
The amendment provides 88 Energy with near-term cash payments, enhanced security, and accelerated payment for outstanding Icewine 3D data costs. Burgundy continues to fund 100% of Phase 1 expenditure under the agreed US$29 million carry. During the quarter, 88 Energy received about A$0.7 million in joint venture contributions from Burgundy, including an amendment fee of US$100,000 and US$150,000 toward Icewine 3D costs. US$2.1 million remained outstanding at quarter-end. Payments since the original agreement in February 2025 have delivered approximately A$2.0 million net cashflow benefits to 88 Energy.
Franklin Bluffs-1H Well Spud Date Updated to March 2027
The Franklin Bluffs-1H well spud date was revised to 30 March 2027, with drilling expected in Q1 2027. The Phase 1 funding deadline extended to 30 September 2026, allowing Burgundy additional time to complete funding. Burgundy submitted a draft Form S-1 and completed two SEC comment rounds as of April 2026. The company continues progressing its US listing and funded 100% of Project Phoenix expenditure under the carry during the quarter.
88 Energy's exclusive option to acquire up to 25% interest in Burgundy's Fall 2025 North Slope leases at cost was extended to 1 April 2027, providing flexibility to increase acreage participation. The amended terms also include additional security over Burgundy's leases and accelerated payment for Icewine 3D data with enhanced enforcement. The Franklin Bluffs-1H spud remains contingent on Burgundy completing funding and listing, making timing dependent on external factors.
Namibia PEL 93 Farm-In Secured on Fully Earned Basis
88 Energy amended its farm-in agreement with Monitor Exploration Limited for PEL 93, securing a 20% working interest fully earned and unconditional. This removes Stage 2 and 3 farm-in obligations, cutting future capital exposure by about US$15 million while maintaining participation in the underexplored Owambo Basin. PEL 93 covers roughly 18,500 square kilometres of onshore Namibia, offering exposure to a basin-opening exploration opportunity in a region with limited drilling but proven hydrocarbon systems.
The revised agreement cancels minimum forward commitments of approximately US$15 million, allowing 88 Energy to focus on its Alaska portfolio. The company retains an option to increase its interest and explores future funding options including third-party participation or a Namibia-focused listed entity. Monitor completed integrated interpretation of aerogravity, magnetic, radiometric, seismic, passive seismic, and legacy data, improving structural definition and confirming Lead 9 as a priority drilling target.
Quarter-End Cash Position Reflects Placement and Operating Costs
88 Energy reported a cash balance of A$8.2 million at 30 June 2026, up from A$5.5 million at the quarter start. This reflects financing activities including a placement raising approximately A$5.0 million before costs via 173,602,563 new shares at A$0.0290 each, settled in April 2026, delivering about A$4.6 million net. Operating and investing activities resulted in net cash outflows of A$1.968 million during the quarter.
Key cash outflows included approximately A$0.9 million for Augusta-1 rig payments, camp activation, permitting, and well planning, plus PEL 93 work program costs. The company paid about A$0.9 million in annual Alaskan lease rentals for South Prudhoe and Project Phoenix, with Burgundy funding the Project Phoenix portion. Staff and administration expenses totaled about A$0.8 million, consistent with the prior quarter, including roughly A$0.2 million in director payments. Burgundy contributed approximately A$0.7 million in joint venture funds toward Project Phoenix lease expenses.
Liquidity and Funding Outlook for Upcoming Drilling Campaigns
The reported A$8.2 million cash balance excludes anticipated costs for Augusta-1 and Franklin Bluffs-1H drilling campaigns, both targeted for Q1 2027. Both wells remain subject to securing adequate funding, with successful execution dependent on closing farm-out deals or alternative financing for South Prudhoe and Burgundy meeting funding and listing milestones for Project Phoenix. The company estimates approximately 4.87 quarters of funding based on historical burn rates, excluding drilling capital requirements.
The April 2026 placement provided resources for operational preparations including rig contracting, camp activation, and permitting, but significant capital is still required to drill. Burgundy's commitment to fund 100% of Project Phoenix Phase 1 expenditure offers some certainty for Franklin Bluffs-1H funding, subject to its listing progress. The South Prudhoe farm-out process is actively progressing to de-risk Augusta-1 funding, though no specific financing deals have been announced.
Annual General Meeting Resolutions Passed and Board Approval
88 Energy held its Annual General Meeting on 26 May 2026, where all resolutions were passed by poll. The Board authorized the release of this quarterly activities and cashflow report. Dr Stephen Staley, Non-Executive Director with over 40 years’ petroleum industry experience, a Fellow of the Geological Society of London, and qualified Geologist and Geophysicist, reviewed and consented to the technical information and prospective resource estimates in this announcement.
Dr Staley’s review and consent provide assurance on the quality of resource estimates prepared under Petroleum Resources Management System standards by the Society of Petroleum Engineers. His qualifications meet "Competence" criteria under clause 3.1 of the Valmin Code 2015, offering third-party technical validation of the resource reporting. The Board’s formal authorization confirms collective responsibility for the accuracy and completeness of market disclosures.
This article is for general information only, based on publicly available data from the Investegate RNS announcement dated 22 July 2026. Information is factual and drawn directly from 88 Energy Limited’s quarterly activities and cashflow report for the period ended 30 June 2026. Prospective resources are estimates subject to discovery and development risks; exploration risk in oil and gas projects is substantial. Past statements on drilling timing, funding, permitting, and resource realization remain subject to contingencies and may not occur as expected. Investors should conduct independent financial and technical reviews and seek professional advice before investing. Additional information is available via the company’s securities listings and regulatory filings.
