Lodgement of Annual Report

88 Energy Limited

23 March 2026

 

23 March 2026

88 ENERGY LIMITED

LODGEMENT OF ANNUAL REPORT

88 Energy Limited (ASX:88E; AIM:88E) ("88 Energy" or "Company") advises that a copy of the Company's Annual Report for the year ended 31 December 2025 (the "Annual Report") has been lodged on the ASX along with the Company's 2025 year-end Corporate Governance Statement and Appendix 4G.

The Annual Report, which was sent to shareholders today, is available on the Company's website at www.88energy.com along with copies of each of these other documents.

Set out below is the Chairman's Statement as included in the Annual Report.

Also, set out below is a summary of the Company's audited financial information for the year ended 31 December 2025 as extracted from the Annual Report, being:

·     Consolidated Statement of Comprehensive Income;

·     Consolidated Statement of Financial Position;

·     Consolidated Statement of Changes in Equity; and

·     Consolidated Statement of Cash Flows.

Media and Investor Relations:

88 Energy Ltd Ashley Gilbert, Managing Director Tel: [phone] Email: [e-mail]
Fivemark Partners, Investor and Media Relations
Michael Vaughan	Tel: [phone]
Euroz Hartleys Ltd
Chelsey Kidner	Tel: [phone]
Cavendish Capital Markets Limited
Derrick Lee / Pearl Kellie	Tel: [phone]
Hannam & Partners Leif Powis / Neil Passmore	Tel: [phone]

CHAIRMAN'S STATEMENT

Dear Shareholders,

It is my pleasure to present 88 Energy's Annual Report for the year ended 31 December 2025. The year reflected a continued sharpening of our strategic focus and the disciplined expansion and advancement of a portfolio centred on Alaskan exploration and appraisal opportunities proximate to proven producers.

Without a doubt, the Alaskan North Slope is experiencing renewed oil and gas exploration and development momentum, supported by favourable policy settings, recent exploration success, and expanding infrastructure investment. Federal and State agencies continue to streamline permitting processes and actively encourage new domestic energy investment. During the year, notable exploration success was reported by APA Corporation, Armstrong Oil and Gas, and Santos Limited. Infrastructure development also progressed, with Santos' Pikka Phase 1 project nearing completion and first oil expected in 2026, while proposed gas pipeline and LNG initiatives further serve to highlight the long-term strategic relevance of the basin. In addition, the Fall 2025 North Slope Bid Round saw 271 leases awarded to nine companies, including 88 Energy, representing approximately 466,764 acres and total investment of around US$17 million.

Collectively, these developments underscore the growing strategic importance of the Alaskan North Slope and reinforce the commercial potential of our assets. The oil and gas sector remains integral to a well-functioning global economy amid volatile markets and evolving energy security priorities. Against this backdrop, the Board has remained focused on disciplined capital allocation, advancing a data-led approach to the progression of select assets with credible and clearly defined pathways towards future production.

During the year, 88 Energy meaningfully enhanced and evolved its Alaskan portfolio. At Project Leonis, recently renamed South Prudhoe, the Company reported a maiden internal Prospective Resource estimate for the Canning Prospect which was also recently updated in February 2026 with prospective resource estimates covering the Ivashak, Kuparuk and also revised Canning and USB reservoirs (Schrarder Schrader Bluff). This work confirmed significant prospectivity across the expanded South Prudhoe acreage with multiple drill ready prospects identified.

The expanded South Prudhoe acreage position includes fourteen new leases covering approximately 34,560 acres that were secured across two focus areas or, as we see it, strategic development hubs. These acquisitions reflect our infrastructure-led and data-driven strategy in action, with the new tenure supported by modern seismic interpretation and located in close proximity near to established North Slope infrastructure. The expanded acreage provides deliberate us with exposure to lower-risk, near-infrastructure exploration and development opportunities, while maintaining a disciplined approach to capital deployment.

At Project Phoenix, 88 Energy achieved a significant milestone with the execution of binding terms for a farm-out participation arrangement with Burgundy Xploration LLC (Burgundy). Under the agreed structure, Burgundy intends is to fund up to US$39 million of the future gross work programme, providing a full carry through the planned horizontal well and extended production test. Burgundy progressed its funding strategy through the confidential submission of a draft Form S-1 registration statement with the United States Securities and Exchange Commission and in parallel, advanced operational readiness with the appointment of Fairweather LLC, the progression of Franklin Bluffs 3D seismic planning, and the strengthening of in-state capability. Together, these activities strongly position the joint venture to support the Franklin Bluffs drilling and production test programme currently scheduled for H1 CY2026.

Turning to Namibia, the Company secured a 12-month extension to the First Renewal Exploration Period at PEL 93 through to 2 October 2026. This was accompanied by approval of a refreshed Stage 1A work programme designed to support pre-drill de-risking. The programme includes a high-resolution airborne gravity, magnetic, and radiometric survey, preparation of a certified prospective resource report, and development of an Authority for Expenditure for a potential exploration well. Stage 1A is to be jointly funded on a 50:50 basis, subject to a US$1 million cost cap.

Decisive steps were taken to simplify the portfolio and reduce future cost exposure. In August 2025, 88 Energy executed a binding agreement to sell its 75% non-operated interest in the producing Project Longhorn assets in the Permian Basin for US$3.25 million. This removed exposure to a capital-intensive multi-well development programme, while allowing capital to be redeployed into the Company's core exploration focus. In December 2025, 88 Energy relinquished its historical Peregrine and Umiat leases as part of its ongoing portfolio optimisation strategy. This decision reduces future lease holdings and reflects a disciplined approach to capital allocation. Together with the sale of Project Longhorn, the relinquishment of the Peregrine and Umiat assets has contributed to a significant impairment charge in the current reporting period. However, these actions strategically position the Company to direct capital and technical resources toward assets with superior subsurface characteristics, greater proximity to infrastructure and stronger near-term value potential.

On 22 August 2025, Mr Philip Byrne retired as Non-Executive Chairman and from the Board, with my appointment as Non-Executive Chair effective the same day. I would like to again acknowledge Phil's contribution and thank him for his leadership and support during his tenure, particularly during a period of strategic transition.

On behalf of the Board, I thank our shareholders for your continued support. As we look to 2026, the Company is positioned around a clear focus, with a portfolio concentrated on sensible, high-impact opportunities, and an ongoing commitment to strategic and financial discipline.

Sincerely,

 

Ms Joanne Williams

Non-executive Chair

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

	Note	2025 $	2024 $
Other income	3(a)	345,352	821,553
Share of profit/(loss) from equity accounted investment	9	(1,162,061)	(1,463,930)
Administrative expenses	3(b)	(1,813,929)	(987,160)
Occupancy expenses		(34,642)	(31,233)
Employee benefit expenses	3(c)	(2,344,226)	(2,360,360)
Share-based payment expense	14	(326,683)	(136,879)
Depreciation and amortisation expense		(90,717)	(79,052)
Finance cost		(2,178)	(2,050)
Other expenses		(36,104)	(673,415)
Foreign exchange (loss) / gain		(478,851)	1,035,872
Impairment of Exploration & Evaluation Asset	3(d)	(30,301,809)	(28,942,372)
Impairment of Investment in Associate Asset	3(e)	(16,664,577)	-
Loss before income tax		(52,910,425)	(32,819,026)
Income tax expense	4	-	-
Loss after income tax for the year		(52,910,425)	(32,819,026)
Other comprehensive income / (loss) for the year Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations		(8,432,367)	13,078,386
Other comprehensive income / (loss) for the year, net of tax		(8,432,367)	13,078,386
Total comprehensive income / (loss) for the year attributable to members of 88 Energy Limited		(61,342,792)	(19,740,640)
Loss per share for the year attributable to the members of 88 Energy Limited:
Basic and diluted loss per share(i)	5	(0.0457)	(0.0275)

(i)            As approved by shareholders on 6 May 2025 a share consolidation of capital was completed during the year on a one share for every twenty-five shares held. The 2024 comparative has been amended to reflect the consolidation.

The notes to the financial Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025

	Note	2025 $	2024 $
ASSETS
Current Assets
Cash and cash equivalents	6(a)	6,821,858	7,198,567
Trade and other receivables	7	3,735,245	5,596,273
Total Current Assets		10,557,103	12,794,840
Non-Current Assets
Plant and equipment		57,633	30,761
Exploration and evaluation expenditure	8	76,846,962	113,929,186
Other Assets		519,350	550,768
Equity accounted investments	9	-	21,688,470
Total Non-Current Assets		77,423,945	136,199,185
TOTAL ASSETS		87,981,048	148,994,025
LIABILITIES
Current Liabilities
Trade and other payables		129,189	107,374
Provisions		233,478	249,411
Total Current Liabilities		362,667	356,785
TOTAL LIABILITIES		362,667	356,785
NET ASSETS		87,618,381	148,637,240
EQUITY
Contributed equity	10	392,621,587	392,621,587
Reserves	11	34,930,720	43,039,154
Accumulated losses		(339,933,926)	(287,023,501)
TOTAL EQUITY		87,618,381	148,637,240

The Consolidated Statement of Financial Position should be read in conjunction with the notes to the financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

	Issued Capital $	Reserves $	Accumulated Losses $	Total $
At 1 January 2025	392,621,587	43,039,154	(287,023,501)	148,637,240
Loss for the year	-	-	(52,910,425)	(52,910,425)
Other comprehensive income	-	(8,432,367)	-	(8,432,367)
Total comprehensive income/(loss) for the year after tax	-	(8,432,367)	(52,910,425)	(61,342,792)
Transactions with owners in their capacity as owners:
Issue of share capital	-	-	-	-
Issue of shares for vested PR's	-	-	-	-
Issue of Options	-	-	-	-
Settlement of vested PR's	-	(2,750)	-	(2,750)
Share-based payments	-	326,683	-	326,683
Share issue costs	-	-	-	-
Balance at 31 December 2025	392,621,587	34,930,720	(339,933,926)	87,618,381
At 1 January 2024	379,917,222	29,972,652	(254,204,475)	155,685,399
Loss for the year	-	-	(32,819,026)	(32,819,026)
Other comprehensive income	-	13,078,386	-	13,078,386
Total comprehensive income/(loss) for the year after tax	-	13,078,386	(32,819,026)	(19,740,640)
Transactions with owners in their capacity as owners:
Issue of share capital (i)	13,640,201	-	-	13,640,201
Issue of Options	-	275,462	-	275,462
Settlement of vested PR's	-	(424,226)	-	(424,226)
Share-based payments	-	136,879	-	136,879
Share issue costs	(935,836)	-	-	(935,836)
Balance at 31 December 2024	392,621,587	43,039,154	(287,023,501)	148,637,240

The Consolidated Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

	Note	2025 $	2024 $
Cash flows from operating activities
Payment to suppliers and employees		(4,275,259)	(3,546,555)
Interest and other income received		99,191	131,912
Net cash flows used in operating activities	6(b)	(4,176,068)	(3,414,643)
Cash flows from investing activities
Payments for exploration and evaluation activities	8	(4,844,218)	(25,312,056)
Contribution from Joint Operation Partners in relation to exploration		6,421,139	5,042,419
Proceeds (payment) for bonds		-	609,086
Distribution from Equity Accounted Investments		261,841	2,284,633
Proceeds from sale of Longhorn		2,491,611	-
Net cash flows generated from/used in investing activities		4,330,373	(17,375,918)
Cash flows from financing activities
Proceeds from issue of shares	10	-	9,695,924
Share issue costs		-	(669,781)
Net cash flows from financing activities		-	9,026,143
Net increase/(decrease) in cash and cash equivalents		154,305	(11,764,418)
Cash and cash equivalents at the beginning of the year		7,198,567	18,182,727
Effect of exchange rate fluctuations on cash held		(531,015)	780,258
Cash and cash equivalents at end of year	6(a)	6,821,858	7,198,567

The Consolidated Statement of Cash Flows should be read in conjunction with the notes to the financial statements.

 

END