88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) said it is focused on 'rapidly unlocking' the huge potential of Project Phoenix on Alaska's North Slope.
The comment, from managing director Ashley Gilbert, came alongside an update on the joint venture with Burgundy Xploration and the planned 2025/26 work programme, which includes a horizontal test well targeting the SMD-B reservoir.
Burgundy has paid US$1 million of its outstanding US$4 million cash call and committed to settling the remaining US$3 million by February 15. It intends to provide a full carry in exchange for an additional working interest from 88 Energy.
Planning for a horizontal well flow test using the Franklin Bluffs gravel pad is advancing, with finalisation expected to coincide with potential farm-out agreements.
In the region, Pantheon Resources has reached target depth at its Megrez-1 well and plans an extended test in early 2025.
Any success may improve commercial prospects for Project Phoenix. Recent lease acquisitions also highlight growing interest in the Alaskan North Slope’s exploration potential, 88E pointed out.
Managing director Ashley Gilbert said: "Advancing Project Phoenix towards commercialisation remains an important element of our overall strategy.
"Having delivered a strong contingent resource estimate of net 239 million barrels of oil and natural gas liquids1, we are now focused on rapidly unlocking its full potential.
"Burgundy's continued commitment to the project and progress with their North American listing process provides us with confidence in our ongoing partnership and wider support from the investment and the oil and gas community.
"Our focus remains on further de-risking Project Phoenix, both financially and technically, while simultaneously pursuing opportunities within our expanded Alaskan and Namibian portfolio of exploration activities."