88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has reported steady progress across its portfolio during the September quarter, with key developments at its Alaskan exploration assets and continued work to de-risk its Namibian acreage, alongside the completion of a strategic divestment in the United States.
The company ended the quarter with A$8.3 million in cash, bolstered by the sale of its 65% interest in Project Longhorn, an oil and gas venture in the Texas Permian Basin, for US$3.25 million.
The sale, effective 1 July, allowed 88 Energy to avoid exposure to multi-well drilling costs estimated at US$2 million per well.
Alaska: advancing Project Phoenix and Leonis
At Project Phoenix, where 88 Energy holds a 75% working interest, joint venture partner Burgundy Xploration continued to advance its funding plan and paid all 2025 lease costs.
Planning for the Franklin Bluffs-1H horizontal well remains on track for a mid-2026 spud, targeting the SMD-B reservoir, part of the Campanian sequence known for good reservoir quality.
Burgundy is set to fund up to US$39 million (A$60 million) under a two-phase earn-in agreement. The first phase will see the company fully fund the 2025-26 programme, including drilling and testing the Franklin Bluffs-1H well, in exchange for up to a 50% interest.
Recent drilling by nearby operator Pantheon Resources at its Dubhe-1 appraisal well provided positive read-throughs for 88 Energy’s target zone, confirming a 565-foot hydrocarbon column in the same reservoir.
At Project Leonis (100% owned), planning and permitting for the Tiri-1 exploration well progressed, with key vendor proposals received and the main environmental plan approved.
Farm-out discussions with potential partners are underway, with drilling expected in early 2027. Preparatory work is expected to resume in mid-2026.
Namibia: licence extension and pre-drill work
In Namibia’s PEL 93 licence, where 88 Energy holds a 20% stake, the Ministry of Mines and Energy granted a 12-month extension to the current exploration period, now expiring in October 2026.
A high-resolution gravity survey is planned for early 2026 over the southern area of the block, following encouraging results from earlier seismic work.
The survey will focus on Lead 9, a large structural feature with similarities to ReconAfrica’s Kavango West-1X well, currently drilling nearby in the Owambo Basin. The company said increasing activity in the region is raising industry interest in the basin’s petroleum potential.