88 Energy (AIM:88E ) has progressed its Project Peregrine farmout process to the final phase after selecting a preferred bidder, with the final documents expected in the next few weeks. 

The ASX-listed firm acquired Project Peregrine, which consists of 195,000 net acres, as part of its merger with XCD Energy earlier this year, an oil exploration and production company which holds a 100% Working Interest in the highly prospective Alaskan North Slope. 

The company said ‘strong interest’ was shown in the opportunity at Project Peregrine and highlighted that the bids it had received were ‘competitive.’ Following the execution of the deal’s final documents, more detail on the transaction will be made public, the group said. 

However, 88E advises that there is ‘no guarantee that the parties will agree final terms and conclude the transaction.’ It said a further announcement will be made in due course on the outcome of the ongoing discussions, which are currently confidential in nature. 

In September, 88E unveiled new seismic data analysis at Peregrine identifying similarities between the key prospects at Peregrine and existing discovered fields nearby The group said these ‘very encouraging’ findings had boosted the site’s exploration prospects. 

88 Energy said planning work related to drilling two wells at Peregrine - Merlin and Harrier - remains on schedule with an anticipated late February 2021 spud of the first well at the site. 

“The strong interest shown in the imminent drilling program at Project Peregrine is both a testament to the quality of the opportunity and the hard work done by the 88E team over the last few months. We look forward to working with the preferred bidder to close the transaction and get going on the drill program,” said Managing Director of 88E, Dave Wall.  

Shares in 88 Energy have increased by almost 20% since September 2020 to open 4.66% higher at 0.4p this morning 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 recent weeks, 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%.  

Positive Newsflow Expected on IceWine 

It recently said an independent resource estimate at Icewine which will integrate the results of the recently successful Charlie-1 well is ‘due within weeks.’ Both an increase in acreage and the resource estimate are expected to facilitate ongoing farm-out discussions at Icewine. The Company highlighted that a new farm-out process will follow the release of the report. 

Positive Newsflow Expected on Yukon 

88E has also informed investors that talks are continuing in regard to the Yukon acreage to optimise the monetisation strategy of the acreage, with permitting continuing for future potential. The Company said it is also planning to bring this project area into a farm-out. 

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