88 Energy is advancing its two primary oil and gas projects on Alaska's North Slope, with a production start-up targeted for 2027 from its flagship Project Phoenix.

Project Phoenix Development

Project Phoenix holds a certified 239 million barrels of oil equivalent in net best-estimate contingent resources. The operational plan, a joint venture with farm-in partner Burgundy Xploration, involves drilling the Franklin Bluffs-1H horizontal well in the third quarter of 2026, followed by an extended flow test. This timeline represents a delay from the previously announced mid-2026 schedule. The postponement is attributed to a prolonged US government shutdown in the second half of 2025, which impacted the SEC review process for Burgundy's proposed initial public offering, thereby extending the deadline for Burgundy to meet its farm-out agreement obligations.

Franklin Bluffs-1H Drilling Plan

The drilling program for Franklin Bluffs-1H is methodically planned. It will commence with an initial pilot hole, followed by wireline logging, after which the well will be suspended. The data gathered from this phase will be analyzed to guide the planning and design of the subsequent horizontal production well. The horizontal well will be drilled from the existing Franklin Bluffs gravel pad, targeting the SMD-B reservoir with a lateral length ranging from 3,500 to 5,200 feet. To support operational readiness, Burgundy has appointed Alaskan service provider Fairweather LLC to secure the necessary 3D seismic dataset.

Farm-in Agreement and Funding

Under the farm-in agreement, Burgundy is expected to fund a total of US$39 million in exchange for operatorship and an additional 50% interest in Project Phoenix, provided it fulfills its obligations by the 30 April 2026 deadline. Burgundy has reportedly advanced its funding initiatives and commenced operational spending. 88 Energy currently holds a 75% majority interest in the project. The farm-out agreement also includes provisions for a potential additional well following the completion of production testing on Franklin Bluffs-1H.

Project Leonis and Acreage Expansion

Concurrently, 88 Energy is planning to drill the Tiri-1 exploration well in the first quarter of 2027 as part of its wholly-owned neighbouring Project Leonis, subject to securing a farm-in partner. Project Leonis has initial unrisked prospective resources estimated at 283 million barrels of oil. The company has also significantly expanded its US acreage position by securing 14 new leases via its subsidiary, Captivate Energy Alaska, in the North Slope Areawide 2025W Oil & Gas Lease Sale. For these new leases, 88 Energy is considering a farm-out and planning a multi-zone exploration well, with the Ivishak formation identified as having significant potential. Further technical work, including seismic reprocessing, is planned for 2026 ahead of final decisions.

Strategic Growth Opportunities

88 Energy has a further opportunity to expand its Alaskan portfolio through an agreement with Burgundy, which provides the right to acquire a 25% working interest at cost in the 57 new leases awarded to Burgundy in the North Slope Fall 2025 Bid Round. This offer is under technical evaluation with a participation deadline of 1 October 2026.

North Slope Development Momentum

The company highlighted a resurgence of development momentum on the North Slope, driven by supportive government policies, successful exploration activity, and new infrastructure projects. This includes the streamlining of permitting processes by federal and state agencies and the development of projects like Santos' Pikka Phase 1. This positive environment is further supported by the US Department of the Interior's proposed five-year leasing program, which offers 21