88 Energy secures $15.5M farm-out deal

88 Energy (ASX:88E) signed a farm-out agreement with Westlawn Americas Offshore to fund up to $15.5 million towards the South Prudhoe drilling programme on Alaska’s North Slope.

The agreement covers the upcoming Augusta-1 exploration well, where Westlawn will pay US$9.2 million towards operations to earn a 40% working interest while 88 Energy retains majority ownership.

In addition to direct well costs, Westlawn will contribute US$1.7 million towards administrative, geological, lease, and long-lead item costs for the project.

Commenting on the farm-out, Ashley Gilbert, Managing Director of 88 Energy, said, “Securing a partner of WAO's calibre is a tremendous outcome for 88 Energy shareholders and is, without a doubt, a defining milestone in the advancement of the South Prudhoe Project.”

The Augusta-1 well is scheduled for spudding in the first quarter of 2027 and targets 133.7 million barrels of gross unrisked prospective resources across stacked reservoir intervals.

Following the announcement, the 88 Energy share price was unchanged at $0.020.

The South Prudhoe Project covers approximately 52,269 acres directly adjacent to established North Slope oil infrastructure and pipeline networks.

88 Energy maintains a 60% working interest and operatorship of the asset following technical due diligence and commercial negotiations with its new partner.