88 Energy says preferred bidder on Project Icewine is to facilitate near term operational activity while final farm-out terms are agreed

88 Energy Limited (LON:88E) said an exclusivity agreement over its Project Icewine asset in Alaska has been executed with Burgundy Xploration.

Exclusivity has been granted by the project’s joint venture partners until the end of this month, with a US$500,000 exclusivity fee to be paid by the preferred bidder to the joint venture parties to cover initial agreed costs associated with the 2020 drilling programme.

The exclusivity fee is non-refundable unless the farm-out agreement is not finalised “owing to an act or omission” on the part of the joint venture parties.