88 Energy Limited (ASX:88E) Releases Quarterly Activities Report
Project Phoenix Update
88 Energy Limited (ASX:88E) reported significant advancements in its Project Phoenix during the December quarter. Joint venture partner Burgundy Xploration LLC demonstrated commitment by settling US$1 million of a US$4 million cash call. The partnership aims to fully fund the upcoming work program for 2025/26, which includes horizontal drilling and extended production testing.
The company is optimising stimulation and design for potential well tests, as preparations continue for a future appraisal well.
Project Leonis Expansion
In another key development, 88 Energy secured additional lease blocks, expanding the Project Leonis area. This acquisition adds approximately 10,203 acres and enhances exploration potential significantly. The newly identified Canning prospect showcases resource potential, with a substantial reservoir thickness of up to 336 feet.
Plans for a Tiri-1 exploration well are in progress, with expected drilling in Q1 2026. The company is also in the process of securing funding for this initiative through a farm-out process.
Namibia PEL 93 and Seismic Data Interpretation
The company’s Namibia-based PEL 93 project has shown promising potential, evidenced by the identification of significant structural closures from new 2D seismic data. The high-quality acquisition reveals leads with substantial interpreted closures, signalling clear hydrocarbon charge potential.
Production and Financial Highlights
Production from Project Longhorn averaged 358 barrels of oil equivalent per day (BOE/d) in Q4 2024, representing a decrease attributed to a gas plant incident. During the same period, the company received A$0.4 million in cash flow. A strong focus on cost management led to reductions in staff and corporate costs, contributing to a cash balance of A$7.2 million at quarter’s end.
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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