Dual-listed 88 Energy (88E ) announced this morning that its wholly owned subsidiary Regenerate Alaska Inc, has been named high bidder on Tract 29 in the 2021 Coastal Plain Lease Sale.
Tract 29 comprises 23,446 acres and is adjacent to 88 Energy's existing Yukon Leases as well as the Point Thomson gas condensate field, which is currently in production.
The Company’s bid forms part of the federal government’s first-ever oil and gas lease sale in the Arctic National Wildlife Refuge where it has raised $14.4m in bids, with the vast majority of winning bids submitted by a development corporation owned by the state of Alaska.
The Alaskan-focused explorer highlighted that the acquisition of these leases represents ‘a logical step’ in the Company's aggregation strategy for oil resources in this part of the North Slope, where existing infrastructure provides a potential pathway to commercialisation.
"Tract 29 is considered highly prospective as there is evidence of existing discoveries to the west extending into this area,” commented Managing Director of 88 Energy, Dave Wall.
He added, “We have had our eye on this lease for some time and are extremely pleased to have been announced a high bidder in the recent lease sale.
According to Anchorage Daily News, Dave Wall said in an interview on Wednesday from Australia that the company had bid on a tract at the very western edge of the ANWR coastal plain. He informed investors that total costs to acquire the lease will be about $1 million.
Shares in 88 Energy have increased by over 70% in value since the beginning of November 2020 to open 3.77% higher this morning at 0.55p 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 late 2020, 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%.
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