Managing director Dave Wall described the deal as a “major coup for shareholders”
() has announced a farm-out deal for Project Peregrine in Alaska, which will fund the proposed Merlin-1 exploration well.
The partnership is with Alaska Peregrine Development Company (APDC), which is described by 88 Energy as ‘a consortium of private US entities managed by individuals that have extensive experience in oil and gas.’
APDC will earn a 50% stake in Project Peregrine by paying US$11.3mln of the costs of the Merlin well, slated to spud in February. Meanwhile, 88 Energy is expected to cover around US$1.3mln as its share of the well costs.
“Being able to secure a farmout deal with a high calibre partner on close to two for one deal terms in the current oil and gas environment is a major coup for our shareholders,” said Dave Wall, 88 Energy managing director in a statement.
“This is especially true given the short time period in which it has been achieved as we only acquired Project Peregrine in July of this year.
“APDC is a close cultural fit for our proposed future plans for Project Peregrine and it has been a pleasure to work with them to finalise the farmout deal within a tight timeframe. We look forward to potential success as we approach the imminent spud of Merlin-1 in February 2021.”
In November, 88 Energy raised A$10mln from a share placing.