88 Energy (AIM:88E)  said it continues to advance its principal activities in Alaska as the Company released its half-year results for the six-month period ended 30 June 2020.

The AIM-listed Alaskan explorer highlighted its recent off-market takeover of XCD Energy as the point of significance for the Company throughout the six-month period.

88E previously reached an agreement with XCD Energy for a unanimously recommended merger back in May 2020, achieving a backing of about 18.5% of XCD’s shareholders.  XCD Energy which holds a 100% Working Interest in the highly prospective Alaskan North Slope.

The merged entity will form a diversified portfolio of exploration projects on Alaska’s North Slope. The three key projects will include Project Icewine, Yukon leases and Project Peregrine with the assets at various stages of development, the company outlined.

The combined company will have increased scale and market presence, 88E said, along with higher funding capability and trading liquidity across the ASX and London AIM exchanges.

Commenting on the merger, XCD’s Chairman Peter Stickland said the deal was “compelling” for its shareholders due to the “demonstrated operational capability” at Alaskan North Slope.

Shares in 88 Energy have traded tightly between 0.26p and 0.30p over the past two weeks and opened this morning at 0.275p following this morning’s news.

88E said it has continued discussions to optimise its monetisation strategy of the Yukon Acreage with permitting underway ahead of potential drilling in 2021, subject to farm-out.

The Yukon Leases contain the 86 million barrel Cascade Prospect, which was intersected peripherally by Yukon Gold-1, drilled in 1994, and classified as an historic oil discovery.

88E slashed its losses over the period to $4.02m (30 June 2019: $29.3m) due to impairment costs associated with the relinquishment of the Western blocks alongside general and administrative costs, finance costs and employee benefits expense, the Company noted.

As at 30 June 2020, the Group had cash on hand of $7.2m while net assets totalled $75.8m with the significant increase in net assets largely due to the takeover of XCD Energy Limited.

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