88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has received a US$2 million injection of funds from partner Burgundy Xploration, partially settling outstanding cash calls under the joint venture.
Prior to the new payment, the outstanding call was for US$3.745 million and AIM-quoted 88 Energy today noted that it has now entered into a 'standstill' agreement with Burgundy, giving it until 31 January 2024 to pay the remaining US$1.745 million.
If payment is not made by the deadline, 88 Energy will receive Burgundy’s 50% stake in the joint venture assets – giving it 100% ownership of the projects.
“The company maintains its rights under the joint operating agreement should Burgundy not be able to pay any future cash calls, including exercising the option to require Burgundy to relinquish its working interests in Project Phoenix and the joint venture,” the company said in a statement.
It added: “Burgundy continues to support the progression of the upcoming Hickory-1 flow test program, and it has informed the company it intends to fund its share of the flow test program.”