REG - 88 Energy Limited - Lodgement of Annual Report

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RNS Number : 6740X  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 (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 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: +61 (0)8 9485 0990

 Email: investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations
 Michael Vaughan                                                                Tel: +61 (0)422 602 720

 Euroz Hartleys Ltd
 Chelsey Kidner                                                                 Tel: +61 (0)8 9268 2829

 Cavendish Capital Markets Limited
 Derrick Lee / Pearl Kellie                                                     Tel: +44 (0)131 220 6939

 Hannam & Partners

 Leif Powis / Neil                                                              Tel: +44 (0) 207 907 8500
 Passmore

 

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        (61,342,792)  (19,740,640)
 Energy Limited

 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.

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