REG - 88 Energy Limited - Lodgement of Annual Report
11/03/2025 09:30
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RNS Number : 1894A 88 Energy Limited 11 March 2025
11 March 2025
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 2024 (the
"Annual Report") has been lodged on the ASX along with the Company's 2024
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 (http://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 2024 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: +61 (0)8 9485 0990
Email:investor-relations@88energy.com
Fivemark Partners, Investor and Media Relations
Michael Vaughan Tel: +61 (0)422 602 720
EurozHartleys Ltd
Dale Bryan Tel: +61 (0)8 9268 2829
Cavendish Capital Markets Limited
Derrick Lee Tel: +44 (0)131 220 6939
Pearl Kellie
CHAIRMAN'S STATEMENT
Dear Shareholders,
It is my pleasure to present 88 Energy's Annual Report for the year ended 31
December 2024, a period defined by significant progress across our
exploration, appraisal, and production portfolio. Against a backdrop of
geopolitical change, fluctuating commodity prices, and new uncertainties
associated with the global energy transition, 88 Energy has remained committed
to growing value for shareholders while navigating an evolving energy
landscape.
The global energy sector continues to balance the challenges of meeting
growing demand for reliable and affordable energy while the world advances
towards decarbonisation. This dual focus underscores the critical importance
of companies like 88 Energy.
Throughout 2024, our efforts centred on advancing key projects, optimising our
portfolio, and most importantly positioning the company to unlock future
value. The successful flow test at the Hickory-1 well in Alaska marked a key
moment for Project Phoenix. This milestone validated the potential of multiple
primary and secondary reservoirs, confirming the presence of mobile
hydrocarbons and successfully achieving oil flow to surface, a significant
indicator of commercial potential.
The year also saw significant progress at our Leonis Project, where the
completion of an independent certified resource estimate highlighted the
potential of the Upper Schrader Bluff reservoir. This paved the way for the
launch a formal farm-out process aimed at accelerating exploration via a
planned explorational well (Tiri -1). In December, 88 Energy was announced as
the successful bidder on four additional leases, covering approximately 10,203
acres, growing the projects footprint to over 35,000 contiguous acres. These
leases were targeted based on additional prospectivity mapped within the
deeper Canning Formation reservoir interval, enhancing Leonis' position as a
highly prospective, multi-zone opportunity.
Our entry into Namibia represents a second exciting frontier growth
opportunity for 88 Energy. The seismic program over PEL 93 is a critical step
towards de-risking this vast and underexplored acreage, with ten significant
structural closures already identified. Recent exploration successes in
Namibia have reinforced its potential for world-class discoveries, and we are
enthusiastic about the possibilities this emerging energy province holds for
88 Energy.
In the Permian Basin, Project Longhorn continued to provide a stable
production base and reliable cash flow, with multiple development
opportunities being assessed to further enhance output. The project's
consistent performance underscored the value of maintaining a balanced
portfolio that spans the full spectrum of the oil and gas lifecycle.
I am also mindful that the 88 Energy share price has not reflected the
technical successes during this period. 88 Energy is not the only company
among our peer group that is not getting this recognition. However, I can
assure you that the board and management of the company is laser focussed on
creating value for our shareholders.
As we reflect on the year, it is evident that 88 Energy's achievmentsare
driven not just by our assets but by the dedication and expertise of our team.
Their ability to adapt to a constantly changing environment while delivering
operational excellence and strategic foresight has been instrumental in
achieving our goals for 2024.
To our shareholders, I extend my deepest gratitude for your unwavering support
and belief in 88 Energy's vision. The path to value creation often demands a
combination of belief and patience, and our progress this year affirms the
strength of our strategy and the quality of our portfolio. With a strong
foundation in place and a pipeline of high-impact opportunities, I am
confident that 88 Energy is well-positioned to deliver substantial value in
the years ahead.
On behalf of the entire team, I thank you for your trust and partnership and
look forward to continuing this journey together. Wishing you a healthy and
prosperous 2025.
Yours faithfully,
Philip Byrne
Non-Executive Chairman
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
Note 2024 2023
$ $
Other income 3(a) 821,553 500,927
Share of profit/(loss) from equity accounted investment 9 (1,463,930) 1,665,442
Administrative expenses 3(b) (987,160) (2,690,171)
Occupancy expenses (31,233) (34,992)
Employee benefit expenses 3(c) (2,360,360) (2,911,375)
Share-based payment expense 14 (136,879) (879,455)
Depreciation and amortisation expense (79,052) (64,228)
Finance cost (2,050) (8,544)
Other expenses (673,415) (478,961)
Foreign exchange (loss) / gain 1,035,872 (49,514)
Exploration & Evaluation Impairment/Expense 3(d) (28,942,372) (9,488,362)
Loss before income tax (32,819,026) (14,439,233)
Income tax expense 4 - -
Loss after income tax for the year (32,819,026) (14,439,233)
Other comprehensive income / (loss) for the year
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations 13,078,386 (1,627,093)
Other comprehensive income / (loss) for the year, net of tax 13,078,386 (1,627,093)
Total comprehensive income / (loss) for the year attributable to members of 88 (19,740,640) (16,066,326)
Energy Limited
Loss per share for the year attributable to the members of 88 Energy Limited:
Basic and diluted loss per share 5 (0.0011) (0.0005)
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 2024
Note 2024 2023
$ $
ASSETS
Current Assets
Cash and cash equivalents 6 (a) 7,198,567 18,182,727
Trade and other receivables 7 5,596,273 3,973,934
Total Current Assets 12,794,840 22,156,661
Non-Current Assets
Plant and equipment 30,761 22,348
Exploration and evaluation expenditure 8 113,929,186 110,588,395
Other Assets 550,768 506,817
Equity accounted investments 9 21,688,470 23,251,219
Total Non-Current Assets 136,199,185 134,368,779
TOTAL ASSETS 148,994,025 156,525,440
LIABILITIES
Current Liabilities
Trade and other payables 107,374 556,544
Provisions 249,411 283,497
Total Current Liabilities 356,785 840,041
TOTAL LIABILITIES 356,785 840,041
NET ASSETS 148,637,240 155,685,399
EQUITY
Contributed equity 10 392,621,587 379,917,222
Reserves 11 43,039,154 29,972,652
Accumulated losses (287,023,501) (254,204,475)
TOTAL EQUITY 148,637,240 155,685,399
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 2024
Issued Capital Reserves Accumulated Losses Total
$ $ $ $
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)) 13,215,975 - - 13,640,201
Issue of shares for vested PR's 424,226
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
At 1 January 2023 340,972,669 30,468,589 (239,765,242) 131,676,016
- - (14,439,233) (14,439,233)
Loss for the year
Other comprehensive income - (1,627,093) - (1,627,093)
Total comprehensive income/(loss) for the year after tax - (1,627,093) (14,439,233) (16,066,326)
Transactions with owners in their capacity as owners:
Issue of share capital 41,429,821 - - 41,429,821
Issue of Options - 251,701 - 251,701
Settlement of vested PR's - - - -
Share-based payments - 879,455 - 879,455
Share issue costs (2,485,268) - - (2,485,268)
Balance at 31 December 2023 379,917,222 29,972,652 (254,204,475) 155,685,399
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
2024
Note 2024 2023
$ $
Cash flows from operating activities
Payment to suppliers and employees (3,546,555) (5,442,176)
Interest and other income received 131,912 60,646
Net cash flows used in operating activities 6 (b) (3,414,643) (5,381,530)
Cash flows from investing activities
Payments for equity accounted investments - (873,975)
Payments for exploration and evaluation activities 8 (25,312,056) (29,903,780)
Contribution from Joint Operation Partners in relation to Exploration 5,042,419 4,515,460
Proceeds (payment) for Bonds 609,086 584,840
Distribution from Equity Accounted Investments 2,284,633 2,010,345
Net cash flows generated from/used in investing activities (17,375,918) (23,667,110)
Cash flows from financing activities
Proceeds from issue of shares 10 9,695,924 35,414,713
Share issue costs (669,781) (2,322,029)
Net cash flows from financing activities 9,026,143 33,092,684
Net increase/(decrease) in cash and cash equivalents (11,764,418) 4,044,045
Cash and cash equivalents at the beginning of the year 18,182,727 14,123,731
Effect of exchange rate fluctuations on cash held 780,258 14,951
Cash and cash equivalents at end of year 6(a) 7,198,567 18,182,727
The Consolidated Statement of Cash Flows should be read in conjunction with
the notes to the financial statements.
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