88 Energy Limited  (AIM:88E ) has successfully executed a farmout deal with Alaska Peregrine Development Company ("APDC") for its Project Peregrine on the North Slope of Alaska. 

The dual-listed group has been awaiting final documents since November after progressing its Project Peregrine farmout process to the final phase by selecting the preferred bidder. 

The group has now executed definitive documents with APDC in relation to the farmout of its 100% owned Project Peregrine, located in the NPR-A region of the North Slope of Alaska.  

As part of the farmout deal, APDC will earn 50% in Project Peregrine by contributing US$11.3m towards the cost of the Merlin-1 well (estimated gross cost US$12.6m). 

88E will contribute $1.3m, representing its 50% share over and above a US$10m carry while any additional costs above the US$10m carry will be borne equally by both APDC and 88E. 

88 Energy acquired Project Peregrine, a project which consists of 195,000 net acres, as part of its merger with XCD Energy earlier this year, an oil exploration and production company which holds a 100% Working Interest in the highly prospective Alaskan North Slope.  

"Being able to secure a farmout deal with a high calibre partner on close to two for one deal terms in the current oil and gas environment is a major coup for our shareholders. This is especially true given the short time period in which it has been achieved as we only acquired Project Peregrine in July of this year,” said Managing Director of 88E, Dave Wall. 

He added, “APDC is a close cultural fit for our proposed future plans for Project Peregrine and it has been a pleasure to work with them to finalise the farmout deal within a tight timeframe.” 

88 Energy said planning work related to drilling two wells at Peregrine - Merlin and Harrier - remains on schedule with an anticipated late February 2021 spud of the first well at the site.  

Shares in 88 Energy have increased by 25% since the beginning of November 2020 to open 4.29% higher this morning at 0.45p this morning following the announcement. 

Reasons to Follow 88 Energy 

Project Portfolio Across Alaska’s North Slope  

The Alaskan explorer completed its acquisition of XCD Energy, which holds a 100% Working Interest in the highly prospective Alaskan North Slope, back in August 2020. The merged entity has formed a diversified portfolio of exploration projects on Alaska’s North Slope. 

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

The three key projects include Project Icewine, Yukon leases and Project Peregrine with the assets at various stages of development, the company previously outlined this summer.  

In recent weeks, 88E was also formally re-assigned the "Area A" leases at Project Icewine meaning its working interest in around 40% of the project has increased from 30% to 75%.   

Positive Newsflow Expected on IceWine 

It recently said an independent resource estimate at Icewine which will integrate the results of the recently successful Charlie-1 well is ‘due within weeks.’ Both an increase in acreage and the resource estimate are expected to facilitate ongoing farm-out discussions at Icewine. The Company highlighted that a new farm-out process will follow the release of the report. 

Positive Newsflow Expected on Yukon  

88E has also informed investors that talks are continuing in regard to the Yukon acreage to optimise the monetisation strategy of the acreage, with permitting continuing for future potential. The Company said it is also planning to bring this project area into a farm-out.  

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