88 Energy advances Alaska and Namibia projects as planning continues for next drilling phase

88 Energy Ltd reported significant progress across its portfolio in the September quarter, ending with A$8.3 million in cash after divesting its Project Longhorn interest for US$3.25 million and avoiding future drilling costs. In Alaska, Project Phoenix is on track for a mid-2026 spud of the Franklin Bluffs-1H well, with JV partner Burgundy Xploration funding up to US$39 million for a 50% interest, supported by positive nearby drilling results. Project Leonis is advancing towards a 2027 drilling campaign with ongoing farm-out discussions. Concurrently, the company secured a 12-month extension for its PEL 93 licence in Namibia, where a high-resolution gravity survey is planned for early 2026 to further de-risk the Lead 9 prospect amidst increasing regional exploration interest.

Analysis

88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) reported a strengthened financial position in the September quarter, concluding with A$8.3 million in cash. This was significantly bolstered by the strategic divestment of its 65% interest in Project Longhorn for US$3.25 million, effectively mitigating exposure to estimated multi-well drilling costs of US$2 million per well and enhancing capital efficiency.

In Alaska, Project Phoenix (75% WI) is advancing towards a mid-2026 spud for the Franklin Bluffs-1H well, with JV partner Burgundy Xploration committing up to US$39 million (A$60 million) for a 50% earn-in. Positive read-throughs from Pantheon Resources' nearby Dubhe-1 well, confirming a 565-foot hydrocarbon column in the target reservoir, significantly de-risk 88 Energy's prospect. Project Leonis (100% owned) is also progressing, with farm-out discussions underway for a planned early 2027 drilling campaign.

The company secured a 12-month extension for its PEL 93 licence in Namibia, now expiring in October 2026, providing additional time for exploration. A high-resolution gravity survey is scheduled for early 2026 over the Lead 9 prospect, following encouraging seismic results and increasing industry interest in the region's petroleum potential. This extension and planned survey aim to further de-risk the asset amidst growing regional activity.

Key Decisions for Investors

• Monitor the progress of the Franklin Bluffs-1H well at Project Phoenix, as Burgundy Xploration's significant earn-in and positive regional drilling results suggest high potential for value creation.
• Evaluate the outcomes of farm-out discussions for Project Leonis and the planned gravity survey in Namibia, which could further de-risk these assets and attract additional partnership capital.
• Consider the company's improved cash position and reduced capital expenditure commitments post-divestment, which provides financial flexibility for ongoing exploration activities.