88 Energy (88E) , an Alaska-focused hydrocarbon explorer, said it has received notice from the Bureau of Land Management Alaska (BLM) that its Project Peregrine leases have been suspended for a period of 12 months from December 1, 2023 to November 30, 2024. The leases cover an area of 125,735 acres in the National Petroleum Reserve-A (NPR-A) area of Alaska's North Slope. The leases are held by 88E's wholly-owned subsidiary Emerald House.
88 Energy said it has been in discussions with the BLM regarding proposed regulations and implications on the Peregrine leases during Q4 2023, with the eventual outcome being BLM approving a 12-month suspension.
Peregrine leases (in blue) are located in the Federal NPR-A area of the North Slope of Alaska.
88 Energy is targeting a farm-out to fund future exploration efforts at Peregrine, subsequent to a resolution in the current consultation process concerning future regulations in the NPR-A.
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88 Energy's 100%-owned Project Peregrine leases have been suspended for 12 months following discussions with the BLM regarding new regulations governing resources in National Petroleum Reserve-A (NPR-A) on Alaska's North Slope. The decision will allow 88 Energy to keep the leases and continue work on internal geological models, including further optimisation of the Harrier-1 location. No physical work will occur until November 30, 2024. The suspension also relieves 88 Energy of the obligation to pay lease rentals during the suspension period of c. A$0.5m, which were due in Q1 2024.
88 Energy should be ready to continue work on Peregrine next year after its work programme in 2023 identified the new N12 and N13 prospects in the world-renowned Nanushuk Formation. The Harrier-1 exploration well remains a key target in the northern areas of the leases. The well has the potential to assess 3 independent Nanushuk reservoirs, resulting in significantly lower exploration costs.
While physical work at Peregrine is on hold, 88 Energy will be busy with its bigger projects, including the flagship Project Phoenix where flow testing of the Hickory-1 well remains on track for Q1 2024. The well is currently targeting 647 million barrels of oil across several pay zones. The company is also advancing its nearby Project Leonis with a view to prepare a maiden resource estimate in Q1 2024 ahead of targeted farm-out in 2024.
Meanwhile in West Texas, 88 Energy recently expanded its Project Longhorn, now spanning 2,625 acres and producing ~370 BOE/day gross (~61% oil), with a target of 600-675 BOE/day (~75% oil) by year-end 2024. And in Namibia, the company recently announced a 3-stage farm-in agreement for 45% interest in onshore PEL 93, spanning 18,500km2 in the rich Owambo Basin.
88 Energy is fully funded to support these works following November's £5.3m fundraise.
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