US/Namibia: 88 Energy provides summary of activities for the quarter ended

88 Energy has provided the following summary of activities for the quarter ended 31 March 2026. 

South Prudhoe (100% WI)

Located within one of the most prolific hydrocarbon fairways on the Alaska North Slope

Multiple low-capital development pathways within ~6-mile tie-in to existing infrastructure

• Acquisition and interpretation of the Schrader Bluff 3D (SB3D) seismic dataset provides high quality subsurface coverage across the North-West hub of the South Prudhoe acreage.
• Delivery of an internal Prospective Resource estimate of 507 MMbbl (2U, gross unrisked) oil and natural gas liquids (NGLs) (422 MMbbls net)[1] [2] from multiple stacked reservoirs within the consolidated South Prudhoe lease position.
• Five independent reservoir intervals identified across the South-East and North-West hubs.
• The high-impact, multi-zone Augusta-1 well targets the stacked Ivishak and Kuparuk reservoirs with 2U gross unrisked prospective resources of 64 MMbbls of oil and NGLs (53.7 MMbbls net)1, 2 with spud planned in Q1 2027[3].

Key activities that commenced during the first quarter include:

• Well planning, permitting and vendor engagement including rig and service providers.
• Permitting activities for three separate drilling locations, providing flexibility for farm-out, appraisal and development.
• Farm-out process and active engagement with multiple parties active in the data room.

Kad River East (100% WI)

Longer term opportunity in an under-explored region, complementing near-term South Prudhoe

• Kad River 3D seismic data secured in April is under review and, together with historical well logs, are expected to provide technical insights and understanding of potential opportunities.
• Interpretation of the 3D dataset will support the maturation of prospects within the Kad River East leases and preparation of an internal maiden Prospective Resource estimate, expected to be released in H2 CY2026.

Project Phoenix (~75% WI)

2025 project farm-out with US$29 million carry for work activities in 2025-2027

• Farm-out partner Burgundy Xploration LLC (Burgundy) advanced funding, permitting and operational readiness for the Franklin Bluffs-1H horizontal well, planned for H2 CY2026.
• 88 Energy remains fully carried for key work programs, with Burgundy funding the lease, permitting and planning costs during the quarter.

PEL93 (20% WI)

Pre-drill de-risking

• High-resolution gravity survey completed, supporting identification and refinement of structural leads and choice of potential well locations.
• Ongoing regional activity, including nearby production testing at ReconAfrica's nearby Kavango West discovery, continues to validate basin potential.
• ReconAfrica commenced production testing operations at its Kavango West discovery in March 2026 and will be conducting production testing across six zones. Kavango West shares similar geological characteristics with Lead 9 in southern portion of PEL 93[4].

Corporate

• Completion of Small Holding Share Facility (SHSF) to improve register efficiency.
• Equity placement completed on 27 March 2026 with funds received subsequent to quarter-end, to raise A$5.0 million (before costs), further strengthening the Company's balance sheet in support of Augusta-1 pre-drilling activities.
• The Company's quarter end cash balance of $A5.5m, together with the $A5m (before costs) raised through the equity placement with funds received in April, results in a pro forma cash position of ~A$10m.

South Prudhoe Project (100% WI)

Strategic Acreage Adjacent to World Class Producers

The South Prudhoe leases cover 52,269 acres immediately south of the giant Prudhoe Bay and Kuparuk River Units, representing two of North America's largest and most productive oil fields. This strategic position directly overlies a proven petroleum system anchored by the Ivishak and Kuparuk reservoirs, with additional upside to be delineated within the Brookian sequence.

Mapping of Storms and Schrader Bluff 3D seismic data, integrated with petrophysical analysis and offset wells, has confirmed multiple fault-block closures. Oil shows, flow tests and production in offset wells such as Hemi Springs State-1 and PBU P-27 demonstrate commercial reservoir properties and strong charge potential. This combination of proven, deep conventional reservoirs and shallower plays provides stacked-pay potential with near-term drilling objectives and long-term growth upside.

Acquired Schrader Bluff 3D Seismic Survey informed prospect generation

The Schrader Bluff 3D (SB3D) seismic survey, acquired in January 2026 from the Alaska Department of Natural Resources, Oil & Gas Division, provided high-resolution subsurface imaging that captured material prospectivity across the South Prudhoe Project. The dataset enhanced 88E's ability to:

• Refine structural and stratigraphic interpretation across the South Prudhoe leases, while improving correlation of key horizons and reservoir intervals with regional fields and discoveries to 88E prospects, strengthening confidence in both existing and emerging prospectivity.
• Advance prospect definition within the focussed Ivishak and Kuparuk reservoirs, plus the additional Brookian reservoirs, which combined, represent stacked high-potential reservoirs.
• De-risk multiple low-to-moderate risk structures identified on 3D datasets already held by 88 Energy and supported by offset well data, including the historical Hemi Springs State-1.

88 Energy has leveraged the State of Alaska's Tax Credit Seismic 3D program, under which historical 3D seismic datasets are made publicly available at a small fraction of their original acquisition cost. This is unique in its scale relative to most jurisdictions and was established by the State of Alaska to encourage exploration investment and broader industry access to high-quality subsurface datasets.

Combined Internal Prospective Resource

The SB3D data was incorporated into 88E's internal exploration database and followed by detailed interpretation of the SB3D in conjunction with the existing Storms 3D dataset and other licenced data sets to produce an updated internal combined Prospective Resource estimate for the South Prudhoe acreage position. The update confirmed multi-million-barrel potential across several mapped prospects within five independent reservoir intervals, including maiden estimates for the Ivishak and Kuparuk reservoirs. 

The combined internal Prospective Resource estimated Gross (2U) Best Estimate of 507 million barrels (MMbbls) of oil and natural gas liquids (NGLs) (422 MMbbls net)1, 2, with additional Brookian Resource upside expected to be defined within the North-West Hub in Q2 CY2026 from multiple targets identified on the newly purchased Schrader Bluff 3D seismic data. The estimate identified the high-confidence Augusta prospect (Augusta-1) as the primary near-term target with the potential to unlock up to 64MMbbls (2U, gross unrisked) (53.7 MMbbls net) from the Ivishak and Kuparuk reservoirs alone 1, 2 with potential further upside from the Brookian reservoirs.

Planning and Permitting Underway for the Augusta-1 Exploration Well

The planned Augusta-1 exploration well is set to be drilled adjacent to existing oil discoveries and producing fields and is designed to test the high-quality stacked Ivishak and Kuparuk reservoirs. Augusta-1 is the highest-priority target within the Company's portfolio because it represents a material, relatively low-risk and near-term value creation opportunity. Location selection and well planning are supported by well-defined structural traps and seismic amplitude anomalies consistent with the proven nearby reservoirs. Permit and planning activities commenced in February, including three potential drilling locations offering clear access pathways. Permitting three locations provides flexibility for farm-out structuring, potential future appraisal drilling following success and optimisation to incorporate shallower Brookian targets currently under evaluation. Final well location selection for Augusta-1 is expected by mid-2026. Advanced discussions are underway with drill rig providers, with the Company expecting to secure a drill rig contract in Q2 CY2026, ahead of the planned Alaska winter drilling season in Q1 CY2027.

Drilling the Augusta-1 well remains subject to securing funding, including completion of the current farm-out process, which is targeted for Q3 CY2026. Multiple parties are currently evaluating the opportunity following launch of the process in late-February 2026.

Figure 1 below, shows the South Prudhoe leases, covered by 3D data and located immediately South of the Prudhoe Bay Unit and Kuparuk River Unit. Since 1990 there has been a steady stream of satellite oil fields (as shown in Figure 1), which more recently have been developed within two to three years from discovery / sanction to first oil and benefiting from tie-in to existing North Slope infrastructure. Augusta-1 has a clear path to market supported by ~6-mile tie-in to the Kuparuk Pipeline to the North. The Kuparuk pipeline network is a regulated common carrier, so third party producers are assured the right to tie in and move barrels to market.

Kad River East Project (100% WI)

The Kad River East acreage comprises of seven leases covering 17,920 acres east of TAPS. The Company's technical team identified this acreage as showing high prospectivity, as an under-explored frontier-style opportunity, with the analysis supported by historical well data and modern seismic interpretation which indicated the presence of a multi-reservoir petroleum system. Recently completed regional mapping by 88E highlights the development of turbidite fairways analogous to the productive Sockeye fields to the east.

Acquired Kad River 3D Survey 

In April 2026, 88 Energy acquired access to the Kad River 3D seismic dataset which provides full coverage over the Kad River East leases as shown in Figure 2.

Access to the 3D seismic data, in combination with historical well logs, will enable 88 Energy to apply its technical expertise to design a data-driven exploration programme across this highly prospective and under-explored region. Interpretation of the 3D dataset will support the maturation of prospects within the Kad River East leases and enable the calculation of an internal maiden Prospective Resource estimate, expected to be released in H2 CY2026.

The Kad River East acreage is considered a longer-term exploration opportunity that complements 88 Energy's near-term focus at the South Prudhoe project, which includes the planned Augusta-1 drilling program. These assets collectively provide diversified exposure to multiple independent exploration plays within a staged portfolio framework.

Project Phoenix (~75% WI)

Burgundy continued to progress its funding program for the Franklin Bluffs-1H horizontal well and extended production test during the first quarter. Supported by sophisticated energy investors, Burgundy has invested more than US$26 million into Project Phoenix since inception and has met all cash call requirements since the Farmout Participation Agreement was executed in February 2025.

As a recap, on 15 October 2025 Burgundy announced that it had confidentially submitted a draft registration statement on Form S-1 with the SEC relating to the proposed initial public offering (IPO) of common stock. The IPO is expected to occur after the SEC completes its review process, subject to market and other conditions. Unfortunately, the prolonged United States government shutdown in 2H 2025 extended usual SEC review timelines. Consequently, in November 2025, 88 Energy granted Burgundy an extension under the Participation Agreement until 30 April 2026 to complete its obligations in the farm-out agreement.

Burgundy's operational readiness to drill also advanced during the first quarter with ongoing vendor engagement, well planning and permitting.

Namibia PEL 93 (20% WI)

The commissioned high-resolution gravity survey was successfully completed in March CY2026, covering the southern area of PEL 93 where multiple structural leads have been identified.

The operator has commenced data interpretation and will integrate the results within the existing geological and geophysical dataset for PEL 93 to refine prospects and support the identification of drilling targets.

Nearby operator, ReconAfrica, commenced production testing operations at its Kavango West discovery in March 2026 and will be conducting production testing across six zones. Kavango West shares similar geological characteristics with Lead 9 in the southern portion of PEL 934.

Corporate

Cash Balance

At 31 March 2026, the Company's cash balance was A$5.5 million (US$3.9 million). The attached ASX Appendix 5B sets out the Company's cash flow for the first quarter.

Material cash flows for the period include:

• Exploration and Evaluation Expenditure: ~A$0.3 million (December 2025 quarter A$0.4 million) related to Augusta-1 well permitting and planning, acquisition of 3D surveys for South Prudhoe and Kad River East and PEL 93 work program costs, including the air gravity survey.
• Staff and Administration Costs ~A$0.8 million corporate costs (December 2025 quarter A$0.9 million) and includes fees paid to Directors of A$0.2 million.  

The Company's quarter end cash balance of $A5.5m, together with the $A5m (before costs) raised through the equity placement with funds received in April, results in a pro forma cash position of ~A$10m.

Equity Placement

On 27 March 2026, the Company completed an equity placement to sophisticated investors raising approximately A$5.0 million (approx. £2.6 million) before costs (The Placement). The Placement was heavily oversubscribed, reflecting strong support for the Company's sharpened, Alaska-focused exploration strategy, expanded North Slope acreage position, and the potential of the Company's forward programme of activities. Funds raised strengthened the Company's balance sheet and will accelerate key pre-drilling activities, including permitting and well planning for the Augusta-1 exploration well, currently scheduled to spud in Q1 CY2027.

A total of 173,602,563 new ordinary shares were issued at a price of A$0.0290 (£0.01508) per share. The shares were issued under the Company's available placement capacity pursuant to ASX Listing Rule 7.1 and were not subject to shareholder approval. The New Ordinary Shares will rank pari passu with the Company's existing shares. Subject to shareholder approval, the Company will also issue:

• Unlisted options (Options) on a 1-for-2 basis (1 option for every two shares subscribed for) to ASX investors participating in the Placement. The Options are exercisable at A$0.0435 per share and expire three years from the date of issue; and
• Unlisted warrants (Warrants) on a 1-for-2 basis (1 warrant for every two shares subscribed for) to UK investors participating in the Placement. The Warrants are exercisable at £0.02262 per share and expire three years from the date of issue.

Euroz Hartleys acted as Sole Lead Manager to the Placement on ASX. Cavendish Capital Markets Limited acted as Nominated Advisor and Joint Broker to the Placement in the UK, and Hannam & Partners acted as Joint Broker in the UK. A commission of 6% was paid to the Lead Manager and Joint Brokers. In addition, subject to shareholder approval, the Company will issue 28,933,761 Unlisted Options (exercisable at A$0.0435 on or before the date which is 3 years from the date of issue) in total to the Lead Manager and Joint Brokers.

Following the issue of the New Ordinary Shares, the Company will have 1,330,952,980 ordinary shares on issue, all of which have voting rights. The figure of 1,330,952,980 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.

Small Holding Sale Facility Completed

88 Energy's Small Holding Share Sale Facility (SHSF) closed on 1 August 2025 for shareholders with parcels valued under A$500 (less than marketable parcels) that did not complete a notice of retention form. The Small Holding Share Sale Facility was completed on 10 March 2026. A total of 46,139,641 ordinary shares held by 6,049 shareholders were sold on market following facility establishment. Proceeds from the sale were apportioned amongst all participating shareholders, according to the number of shares sold on their behalf. The SHSF was undertaken to streamline registry management and reduce administration costs.

Original announcement link

Source: 88 Energy