How 88 Energy’s Alaskan Projects Are Shaping Up for 2026 Drilling

Robust Resource Base at Project Leonis

88 Energy Limited has reinforced the scale of its Alaskan oil prospects with a combined gross mean prospective resource estimate of 798 million barrels across the Canning and Upper Schrader Bluff formations. The company’s 100% working interest in Project Leonis positions it strongly ahead of the planned Tiri-1 exploration well, which aims to test multiple reservoirs including a newly added Canning Formation target. The recent acquisition of the Great Bear 3D seismic survey significantly expands the regional dataset, enhancing the geological understanding and prospect evaluation.

Advancing Tiri-1 Well and Farm-Out Process

Planning and permitting for the Tiri-1 well have progressed with key vendors submitting operational proposals, refining the well’s authorisation for expenditure. The well is designed to intersect both the Canning and USB reservoirs, with potential for deeper upside. Importantly, 88 Energy intends to fund the drilling through a farm-out arrangement rather than a capital raise, leveraging its full working interest to secure a material carry. Third-party evaluations remain ongoing as the company seeks partners to share the drilling risk and cost.

Project Phoenix – Funded Pathway to Production Test

At Project Phoenix, where 88 Energy holds approximately 75% interest, joint venture partner Burgundy Xploration LLC is advancing its funding strategy to finance a $29 million work program. This includes drilling a horizontal well and conducting a long-term production test targeted for mid-2026. Burgundy has reaffirmed its commitment by meeting all 2025 financial obligations, including lease payments, and is progressing towards a North American public listing. The farm-out agreement fully carries 88 Energy’s subsidiary for these costs, providing a clear pathway to de-risk the project and move towards a final development decision.

Namibia License Extension and Pre-Drill De-Risking

In Namibia, 88 Energy secured a 12-month extension to the PEL 93 exploration license, now valid until October 2026. The joint venture with Monitor Exploration Limited has approved a Stage 1A work program focused on pre-drill de-risking, including a high-resolution airborne gravity, magnetic, and radiometric survey planned for the second half of 2025. This survey targets the southern Owambo Basin, where a large anticlinal structure, Lead 9, has been identified and prioritized for future drilling. The upcoming Kavango West 1X well by ReconAfrica nearby adds regional momentum to exploration activity.

Project Longhorn Divestment and Operational Challenges

Production at Project Longhorn in Texas averaged 309 barrels of oil equivalent per day in Q2 2025, a decline from the previous quarter due to third-party gas facility downtime and maintenance issues. Reflecting a strategic review, 88 Energy is progressing negotiations for the sale of its interest in Longhorn. The divestment aims to streamline the company’s asset portfolio and reduce capital expenditure requirements associated with ageing wells. The transaction remains subject to final approvals and documentation.

Corporate and Financial Position

88 Energy ended the quarter with a cash balance of A$8.05 million, supporting ongoing exploration and development activities. The company completed a 1-for-25 share consolidation to optimize its capital structure and launched a Small Holding Share Sale Facility to facilitate the sale of less than marketable parcels, improving registry efficiency. Operating and exploration expenditures remain disciplined, with no immediate plans for capital raising, relying instead on farm-out funding and strategic asset management.