South Prudhoe Prospective Resources Reach 768.9 Million Barrels After Upgrade

Significant Resource Upgrade Drives South Prudhoe Momentum

88 Energy Limited (ASX:88E) has unveiled a substantial upgrade to its South Prudhoe Project prospective resources on Alaska’s prolific North Slope, lifting total gross unrisked 2U prospective resources by approximately 35% to 768.9 million barrels of oil and natural gas liquids (NGLs). Net to 88 Energy, the estimate stands at 640.7 million barrels, confirming a sizeable multi-reservoir opportunity immediately south of the Prudhoe Bay Unit and Kuparuk River Unit, two of North America’s most productive oilfields.

This upgrade notably includes a maiden prospective resource estimate for the Brookian reservoir interval within the North-West Hub, adding 181.5 million barrels gross (151.2 million net) and expanding the stacked reservoir playbook. Meanwhile, the Ivishak reservoir estimate has been boosted by 44%, now at 69.9 million barrels gross (58.2 million net), with the Augusta prospect emerging as the flagship target within this multi-layered system.

Brookian Reservoir Adds Shallow Oil Potential

The Brookian formation, comprising the West Sak and Upper Schrader Bluff reservoirs, introduces a new shallow oil component to the North-West Hub. These reservoirs are analogues to proven producing sands in the adjacent Kuparuk River Unit, where wells like 1J-115 have produced around 6 million barrels, underscoring the commercial viability of these targets. The maiden Brookian resource estimate enhances optionality for future appraisal and development, complementing the deeper Ivishak and Kuparuk reservoirs.

Ivishak Upgrade Strengthens Deeper Reservoir Potential

The Ivishak reservoir, a mainstay of North Slope production, benefits from refined geophysical analysis of 3D seismic velocity data, leading to a 44% increase in prospective resources. The upgraded estimate supports the Augusta Prospect’s position as a high-priority drilling target, with multiple stacked reservoirs, including Ivishak, Kuparuk, and Brookian intervals, offering several potential pay zones within a single well. These reservoirs have extensive regional production history and well control, providing a solid technical foundation.

With the updated resource figures, the North-West Hub now accounts for 301.3 million barrels gross unrisked (251.1 million net), while the South-East Hub holds 467.6 million barrels gross (389.7 million net), together forming a robust portfolio of prospects across the South Prudhoe acreage.

Augusta-1 Well Positioned as Transformational Catalyst

The Augusta-1 exploration well is poised to test up to 133.7 million barrels gross unrisked 2U prospective resources (111.4 million net), spanning Ivishak, Kuparuk, and Upper Schrader Bluff reservoirs. The company has secured Nordic Rig-3 for drilling during the 2027 Alaskan winter season, marking a key operational milestone. Preparations including permitting, logistics, and infrastructure access are well advanced, reflecting a disciplined and de-risked approach to execution.

This well represents a potential turning point for 88 Energy, offering the chance to validate multiple high-quality reservoirs and materially enhance the project's value. Success here could position South Prudhoe as a new core development area adjacent to established North Slope infrastructure, a prospect that aligns with the company’s sharpened strategic focus on Alaska.

Strategic Lease Holdings and Funding Progress

South Prudhoe covers over 52,000 contiguous acres across 21 leases, with 88 Energy holding 100% working interest subject to a 16.67% government royalty. The company expects final lease awards pending adjudication in H2 2026, with management confident of a smooth process given its established track record.

Meanwhile, 88 Energy continues to advance its farmout-led funding strategy, supported by existing cash reserves and recent equity raises. This financial footing underpins the upcoming drilling campaign and operational activities, positioning the company to capitalise on the upgraded resource base. These developments build on the company’s recent substantial prospective resource update and follow a series of strategic funding moves including a $5 million equity placement to accelerate drilling preparations.