88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) today issued its mandatory quarterly activities report to Australian investors, highlighting the previously reported progress in Alaska where the explorer is gearing up for its first 2024 exploration programme.
Planning, permitting, and stimulation activities are advancing smoothly, the company noted, and with the recent mapping of the Upper Slope Fan System (Upper SFS) being a highlight, it revealed a reservoir zone more expansive than initially projected.
At nearby Project Leonis, the company has seen validation in its internal models and it awaits a maiden resource estimate for the Upper Schrader Bluff reservoir by the first quarter of 2024. Here, it eyes potential drilling of a new well by 2025/2026.
Meanwhile, at Project Peregrine, the company has identified two fresh prospects within the Nanushuk Formation which supports a potential plan for a short sidetrack from the Harrier-1 well, which could evaluate up to three independent prospects.
Elsewhere, mapping activities in the Project Icewine West area have spotlighted a series of yet-to-be-tested prospects.
In terms of finances, 88 Energy noted its cash balance of A$10.2 million as of 30 September 2023, and it had no debt.
The company recently executed a strategic reduction in its shareholder base which has led to a decrease in administrative expenses.
88 Energy also noted that Accumulate Energy Alaska has issued a default notice to its exploration partner, Burgundy Xploration, for overdue cash calls. Potentially, this could result in 88 Energy potentially securing a 100% working interest in select leases under Project Phoenix and Project Icewine West, if the matter is unresolved over a 30-day period.