88 Energy has provided an update on Project Phoenix’s joint venture partner Burgundy Xploration, as well as on progress towards the CY25/26 planned work program which includes a horizontal test well targeting the SMD-B reservoir.
Advancement Highlights
- Positive Joint Venture Partner Progress: Burgundy has paid US$1 million of the outstanding US$4 million cash call, demonstrating its ongoing commitment to Project Phoenix.
- 88 Energy has agreed to extend the deadline to 15 February 2025 for the payment of the remaining US$3 million, and Burgundy remains committed to settling the outstanding US$3 million cash call by the revised date.
- Burgundy's stated intention remains to provide a full carry for the anticipated CY25/26 work program in exchange for an additional working interest from 88E.
- Project Phoenix de-risking: Planning and design for an extended horizontal well flow test of the SMD-B reservoir, utilising the existing Franklin Bluffs gravel pad is progressing in collaboration with Burgundy, with finalisation expected to align with any potential farm-out and associated carry.
- Production Test by Adjacent Operator Underway: Pantheon Resources LLC (Pantheon) (AIM:PANR) has reached Target Depth (TD) at its Megrez-1 well and successfully installed five 1/2-inch production casing in preparation for an extended well test scheduled for early 2025.
- Pantheon is testing the eastern topsets in the Ahpun field. Any success at Megrez-1 will enhance the regional understanding of oil and gas accumulations and the potential for the commercialisation of projects in the area, including Project Pheonix.
- Exploration Activity on the Alaskan North Slope Set to Accelerate: 88 Energy's recent acquisition of four lease blocks adjacent to the existing Project Leonis leases (refer to Figure 4), coupled with the arrival of a new entrant acquiring a substantial holding near Project Pheonix, further underscores the regions exceptional exploration potential and attractiveness for future development.
Ashley Gilbert, Managing Director of 88 Energy, commented:
'Advancing Project Phoenix towards commercialisation remains an important element of our overall strategy. Having delivered a strong Contingent Resource estimate of net 239 million barrels of oil and natural gas liquids(1), we are now focused on rapidly unlocking its full potential. 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. Our focus remains on further de-risking Project Pheonix, both financially and technically, while simultaneously pursuing opportunities within our expanded Alaskan and Namibian portfolio of exploration activities.'
1. Refer announcement released to ASX on 18 September 2024 for full details.
Click here for full announcement
Source: 88 Energy
