Project Phoenix – JV Partner Update

88 Energy Limited
05 December 2023
 

 

This announcement contains inside information

5 December 2023

 

88 Energy Limited

PROJECT PHOENIX - JV PARTNER UPDATE

Highlights

·   Burgundy Xploration, LLC (Burgundy) has secured US$2.0M in initial funding that has been agreed to be paid to 88 Energy immediately in part settlement of outstanding cash calls

·  88 Energy has agreed to a standstill of the default until 31 January 2024 for Burgundy to pay the remaining outstanding amount

·   If Burgundy is unable to cure and pay the remaining outstanding amount in full by 31 January 2024, 88 Energy will receive 50% of Burgundy's working interest in Project Phoenix

·    Burgundy remains committed to funding their share of the Hickory-1 flow test program

·  88 Energy is fully funded from the recent Placement and receipt of these funds and is focused on delivering the successful flow testing of multiple reservoirs at the Hickory-1 well in Q1 2024

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is pleased to advise that it has received US$2.0 million in funds from its Project Phoenix JV partner Burgundy Xploration, LLC (Burgundy) as part settlement of the US$3.745 million in unpaid cash calls (represented by US$3,452,967 in relation to outstanding cash calls due plus interest of US$292,505).

The Company via its 100%-owned subsidiary Accumulate Energy Alaska, Inc (88E-Accumulate) has also entered into a further standstill agreement with Burgundy which provides additional time for Burgundy to cure and pay the remaining outstanding funds due of US$1.745 million by 31 January 2024. If Burgundy fails to pay by this date, Burgundy will immediately transfer to 88E-Accumulate 50% of Burgundy's working interest in all of Project Phoenix's Toolik River Unit leases (or a pro rata amount of Burgundy's working interest if Burgundy pays some but not all of the outstanding cash calls amount by 31 January) (Transfer interest).  

Burgundy will also within 5 days after 31 January 2024, sign and return the Hickory-1 flow test AFE at the revised working interest level post the Transfer interest. If Burgundy has not made payment for its share of the AFE cost within six months after the due date of the AFE cash call then Burgundy will transfer 50% of its remaining working interest in the Toolik River Unit leases, post the Transfer interest.

The Company maintains its rights under the joint operating agreement should Burgundy not be able to pay any future cash calls, including exercising the option to require Burgundy to relinquish its working interests in Project Phoenix and the joint venture.

Burgundy continues to support the progression of the upcoming Hickory-1 flow test program, and it has informed the Company it intends to fund its share of the flow test program.



 

 

 

This announcement has been authorised by the Board.

 

 

Media and Investor Relations:

 

88 Energy Ltd

Ashley Gilbert, Managing Director

Tel: +61 8 9485 0990

Email:investor-relations@88energy.com




Fivemark Partners, Investor and Media Relations

 


Michael Vaughan

Tel: +61 422 602 720



EurozHartleys Ltd


Dale Bryan

Tel: + 61 8 9268 2829



Cavendish Capital Markets Limited

Tel: +44 (0)20 7397 8900

Derrick Lee

Tel: +44 (0)131 220 6939

Pearl Kellie

Tel: +44 (0)131 220 9775

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UK 100

Latest directors dealings