Augusta-1 Well Targets 133.7 Million Barrels in Alaska North Slope

Augusta-1 Well Targets Large-Scale Stacked Oil Resource

88 Energy Limited (ASX:88E) is preparing to drill its highest-priority exploration well, Augusta-1, on its South Prudhoe acreage in Alaska’s prolific North Slope. The well is designed to test a substantial stacked resource estimated at 133.7 million barrels gross unrisked (111.4 million barrels net to 88E), spread across three reservoir intervals: Ivishak, Kuparuk, and Upper Schrader Bluff (Brookian). This multi-zone approach offers multiple potential pay zones within a single well, a strategy that could significantly de-risk the project’s resource potential.

The South Prudhoe acreage covers approximately 52,269 acres, strategically positioned immediately south of the Prudhoe Bay and Kuparuk River producing units. These are among the most prolific hydrocarbon fairways on the North Slope, with the Ivishak and Kuparuk reservoirs already proven and producing nearby. The Brookian interval adds meaningful upside potential within the North-West Hub, complementing the core targets.

Operational Readiness Accelerates Toward Q1 2027 Spud

Operational preparations for the Augusta-1 well are well advanced, with 88 Energy securing the Nordic-Calista Rig-3 and contracting a dedicated 58-man Arctic-rated drilling camp. The company is finalising access agreements with operators of the Kuparuk River Unit and Prudhoe Bay Unit to utilise existing roads and facilities. This access strategy is designed to reduce mobilisation risks, environmental impact, and overall costs by minimising the need for new ice-road construction.

Ice-road planning is progressing, with the drill site designed to connect via a short seasonal tie-in to existing infrastructure. These logistics advantages are critical for a winter drilling campaign in Alaska, where weather and access challenges can significantly impact schedules and budgets. With these elements in place, 88 Energy remains on track for the planned Q1 2027 spud, although the company notes this timetable is indicative and subject to change.

Farm-Out Discussions and Funding Strategy

88 Energy continues to engage multiple parties in its formal farm-out process initiated in February 2026, aiming to share the drilling risk and capital requirements of Augusta-1 and the broader South Prudhoe Project. The company holds a 100% working interest with a 16.7% royalty and maintains a strong cash balance of approximately A$10 million as of April 2026, providing flexibility in structuring transactions.

Since acquiring the South Prudhoe acreage in November 2025, 88 Energy has rapidly de-risked the project with new 3D seismic data acquisition, integration of regional datasets, and improved prospect definition. This groundwork has culminated in the selection of Augusta-1 as the priority well, designed to test a development-scale resource adjacent to existing production and infrastructure.

Farm-out remains the preferred mechanism to mitigate execution risk while preserving exploration upside. The ongoing discussions suggest strong market interest, reflecting confidence in the project's potential and 88 Energy's North Slope strategy, which was recently boosted by a 35% increase in South Prudhoe prospective resources, including maiden estimates for the Brookian reservoir 35 percent resource boost.

Strategic Importance of South Prudhoe Project

The South Prudhoe Project is a cornerstone of 88 Energy’s North Slope portfolio, offering a rare combination of scale, stacked reservoir potential, and proximity to established infrastructure. The multiple independent reservoir intervals within the project provide a diversified exploration risk profile, with the Ivishak and Kuparuk formations offering direct analogues to major producing fields.

Augusta-1's location adjacent to existing discoveries and infrastructure not only reduces development risk but also enhances the potential for rapid commercialisation in the event of a successful well. The project’s strategic positioning is further supported by recent capital raises and seismic data acquisitions that have strengthened 88 Energy’s operational and financial footing ahead of drilling $5M equity raise.