88 Energy has executed definitive documents with Alaska Peregrine Development Company LLC (“APDC”) in relation to the farmout of its 100% owned Project Peregrine, located in the NPR-A region of the North Slope of Alaska. The details of the farmout are summarised below:

• APDC to earn 50% in Project Peregrine by contributing US$11.3m towards the cost of the Merlin-1 well (estimated gross cost US$12.6m)
• 88E to contribute $1.3m, representing its 50% share over and above a US$10m carry
• All additional costs associated with the project above the US$10m carry will be borne equally by APDC and 88E

Managing Director of 88 Energy, Dave Wall, stated: 
"Being able to secure a farmout deal with a high calibre partner on close to two for one deal terms in the current oil and gas environment is a major coup for our shareholders. This is especially true given the short time period in which it has been achieved as we only acquired Project Peregrine in July of this year.

APDC is a close cultural fit for our proposed future plans for Project Peregrine and it has been a pleasure to work with them to finalise the farmout deal within a tight timeframe. We look forward to potential success as we approach the imminent spud of Merlin-1 in February 2021.”

KeyFacts Energy: 88 Energy US Alaska country profile