88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has agreed a deal to further expand its portfolio on non-operated wells in Texas, adding a 64.4% interest in around 1,262 of net acres with the potential to substantially increase production volumes.
The newly acquired acreage is already host to nine ‘low-producing’ wells, and, ten field development opportunities.
Work programmes planned for 2024 will include five well workovers in the first half, to deliver around 180 to 220 barrels oil equivalent per day from existing well stock, and, its anticipated that the drilling of two new wells could follow to add another 160 to 200 barrels per day.
88 Energy expects that its Texas portfolio could at that point yield 600 to 675 barrels per day.
The acquisition cost is $350,000 of cash upfront, to be paid by the Bighorn Energy joint venture vehicle (75% owned by 88 Energy), which recently secured a $5 million credit facility.
Prior to the acquisition, the existing Longhorn portfolio produced around 370 barrels per day of oil equivalent.