88 Energy Limited (ASX:88E) Provides Project Phoenix Update
Project Phoenix Advancements
88 Energy Limited (ASX:88E) has provided a positive update on Project Phoenix, highlighting the commitment of joint venture partner Burgundy Xploration, LLC. Burgundy has contributed US$1 million towards an outstanding US$4 million cash call, showcasing their ongoing support for the project. The deadline for the remaining US$3 million payment has been extended to 15 February 2025. Burgundy intends to fully fund the anticipated work program for the CY25/26 in exchange for an additional working interest in the project.
Strategic Planning and Testing Initiatives
Preparations are underway to conduct an extended horizontal well flow test of the SMD-B reservoir. This will take place at the Franklin Bluffs gravel pad, utilising existing infrastructure to promote cost efficiency. Expert well modelling and simulation firm ResFrac is optimising the completion strategy, and recommendations are expected by the end of Q4 CY24.
Regional Exploration and Adjacent Developments
Further exploration activities in the Alaskan North Slope are expected to accelerate following 88 Energy’s recent acquisition of four lease blocks adjacent to existing assets. Notably, nearby operator Pantheon Resources LLC is currently conducting a production test at the Megrez-1 well, which, if successful, could enhance the commercial viability of the surrounding area, including Project Phoenix.
Management Insights
Ashley Gilbert, Managing Director of 88 Energy, said, “Advancing Project Phoenix towards commercialisation remains an important element of our overall strategy…. Burgundy’s continued commitment to the project and progress with their North American listing process provides us with confidence in our ongoing partnership and wider support from the investment and the oil and gas community.”
The total net contingent resource estimate at Project Phoenix stands at 239 million barrels of oil and natural gas liquids, providing a solid foundation as the project moves forward.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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