88 Energy Limited provided an update on Project Phoenix (75% working interest), its advanced conventional oil and gas project located on the North Slope of Alaska. Project Phoenix is subject to a Farmout Participation Agreement, entered into with Burgundy Xploration LLC (Burgundy) in February 2025. Under the terms of this agreement, 88 Energy is fully carried for all costs associated with the upcoming horizontal well and extended flow test.
Franklin Bluffs-1H horizontal well and extended flow test planned for Third Quarter 2026. An initial pilot hole is planned to test the SMD, SFS and BFF reservoir zones, followed by wireline logging, before suspending the well. Production test in horizontal section to target the SMD-B reservoir, the best-developed topset sandstone within the Campanian sequence.
Icewine-1 intersected a 71ft net sandstone sequence in the SMD-B with up to 14% effective porosity, while Hickory-1 recorded up to 11% porosity in the same interval. Analysis of pilot hole and logging results to guide horizontal well planning and design, prior to drilling the horizontal production well and commence the extended production test. Operational readiness is advancing, with Fairweather LLC appointed for execution support and key staffing and operational enhancements underway, including the appointment of an Alaska-based representative.
Burgundy advancing funding initiatives and commencing operational spend to support a 2026 spud. Draft registration statement for Burgundy's proposed IPO confidentially lodged with the U.S. Securities and Exchange Commission ("SEC"). The prolonged United States government shutdown in 2H 2025 has delayed SEC review timelines.
Consequently, 88 Energy has granted Burgundy an extension under the Participation Agreement until 30 April 2026 to complete its obligations in the farm-out agreement. The IPO is expected to occur after the SEC completes its review process, subject to market and other conditions. With the prolonged United States government shutdown in 2H 2025, this has extended usual SEC review timelines.
Consequently,88 Energy has granted Burgundy an extended usual SEC review timelines. Therefore, 88 Energy has granted Burgund an extension under the participation Agreement until 30 April 2026 To complete its obligations in the farm -out agreement. Burgundy's operational readiness to drill has also advanced.
Fairweather LLC has been appointed to support execution, planning is underway to secure the Franklin Bluffs 3D seismic dataset, and strengthened its in state presence through the appointment of a dedicated Alaska-based engineer. The Burgundy team has recently undertaken meetings in Anchorage with Government agencies, key vendors and other stakeholders to advance permitting and logistical preparations. Together, these activities place Burgundy in a strong position to meet its joint venture commitments and support the Franklin Bluffs 1H drilling and production test programme in 2026.
For full details, refer to the ASX announcement dated 15 April 2024. Regionally, Pantheon Resources confirmed a 565 ft hydrocarbon column in the SMD-B topset at Dubhe1, exceeding pre-drill expectations by 26%. Additional hydrocarbon-bearing zones were intersected in the SMD-C and two Slope Fan intervals, with initial flowback operations now underway.
Five-Year Pathway: From Seismic to Target Production Project Phoenix demonstrates 88 Energy's ability to de-risk and advance high-potential acreage. Within five years, the Company has moved from seismic licensing to farm-out, positioning for first production as early as 2027. 2022: Licensing and interpretation of the Franklin Bluffs 3D geological dataset, enabling precise mapping and well planning.
2023: Formation of the Toolik River Unit, consolidating lease position and streamlining regulatory approvals. Burgundy to pay for historical Icewine 3D Burgundy has agreed to pay USD 2,400,000 to 88 Energy for access to the Icewine 3D seismic data, acquired solely by 88 Energy in 2018, with USD 150,000 due by 1 December 2025 and the balance within 60 days of a successful IPO. This seismic data will be key to Burgundy's assessment of the western lease block secured by Burgundy in the recent bid round.
