88 Energy (88E) said preparations for the Augusta-1 exploration well at its South Prudhoe project in Alaska continued to advance during the September quarter, ahead of a targeted Q1 2027 drilling campaign.
More than 80% of vendor services and long-lead items have been selected or secured, while the Augusta-1 well bond has been posted. Key permitting activities remain on track for completion during Q4 2026.
Augusta-1 is designed to test 133.7 million barrels of gross unrisked 2U Prospective Resources across the Ivishak, Kuparuk and Brookian reservoir intervals.
Meanwhile, 88 Energy progressed its competitive farm-out process for South Prudhoe, with multiple counterparties completing detailed technical due diligence and several bids received. Commercial discussions are ongoing, with the company targeting completion of key terms and definitive agreements with a preferred partner by mid-Q4 2026.
At Project Phoenix, 88 Energy approved Burgundy Xploration’s final six-month extension under the participation agreement, moving the funding longstop date to 30 March 2027 and revising the targeted Franklin Bluffs-1H horizontal appraisal well spud to Q3 2027.
As part of the extension, 88 Energy will receive a 10% working interest in about 25,583 gross acres of newly awarded North Slope leases, representing 2,558 net acres. Burgundy will continue funding 100% of Project Phoenix costs under the agreement.
In Namibia, the joint venture operating Petroleum Exploration Licence 93 received approval after the quarter end to enter the Second Renewal Exploration Period, extending the licence to 3 October 2028. The proposed programme includes preparations for drilling at least one exploration well, with Prospect 9 identified as the highest-ranked drilling opportunity.
88 Energy ended the quarter with A$5 million in cash.
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The coming months could be important for 88 Energy as it works towards securing a South Prudhoe farm-out and preparing Augusta-1 for drilling in Q1 2027. Progress at Project Phoenix and the licence extension in Namibia also provide additional exploration catalysts across its portfolio.