88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF) has added diversity and low-risk opportunities with its latest project acquisitions.
That, at least, is the view of analysts at Cavendish.
The explorer, on Thursday, announced it had secured an expanded strategic land position in Alaska’s North Slope, having been named the highest bidder on around 34,560 acres in the 2025 oil and gas lease sale.
Cavendish noted that the new additions position the company with low-risk, near-infrastructure assets adjacent to the Prudhoe Bay and Kuparuk River.
The stockbroker in particular highlighted the Ivishak reservoir as a key opportunity. The formation has delivered more than 13 billion barrels of oil historically and remains underexplored in the southern Prudhoe region, it said.
Cavendish also pointed to past drill tests in the area, which show rates between 100-400 barrels per day, alongside strong porosity in historic wells.
Infrastructure-led exploration (ILX) is central to the company’s strategy, offering lower capex and faster development timelines, the broker noted, whilst also pointing to an indicative capex of approximately US$100 million for a four-well hub, with operating costs of US$21 per barrel.
“88E can leverage a cost-efficient operational model, advanced seismic techniques and a highly experienced technical team to unlock South Prudhoe’s full potential,” the analysts said.