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Energy

88 Energy expects to finalise Icewine farm-out deal in Q1 2019

88 had hoped to have the farm-put deal completed by the end of the year but it has now pushed this back to the first quarter of 2019 as interested parties want a little more time

88 Energy Limited (LON:88E) now expects to finalise a farm-out agreement for its Icewine project in Alaska in the first quarter of next year after agreeing to a request to extend the deadline for bids.

The explorer said there are “multiple high-quality parties” interested in partnering with it and that it has pushed back the year-end deadline in order to maximise the number of bid-ready parties.

READ: 88 Energy looks forward to February spud for Winx exploration well

The longer-term schedule remains unchanged though, with 88 still expecting to drill multiple wells in the 2020 operating season.

“By shifting the self-imposed year-end deadline for the Icewine conventional farm-out, we are maximising the chances of achieving the best deal possible for our shareholders and we remain highly encouraged by the level of activity and the quality of the parties active in the data room,” said chief executive Dave Wall.

“The first quarter of 2019 is shaping up to be an important period for the company with results expected from ongoing analysis related to the HRZ shale, the drilling of the Winx-1 exploration well, further definition of the potential on the Yukon Leases and, of course, the Project Icewine conventional farm-out.”

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