REG - 88 Energy Limited - Quarterly Report and Appendix 5B
29/10/2024 07:30
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241029:nRSc0168Ka&default-theme=true
RNS Number : 0168K 88 Energy Limited 29 October 2024
29 October 2024
QUARTERLY ACTIVITIES REPORT
For the quarter ended 30 September 2024
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy, 88E or the
Company) provides the following report for the quarter ended 30 September
2024.
Highlights
Project Phoenix (~75% WI)
· Significant Resources Update: New Contingent Resources estimates
at Project Phoenix for the SMD-B and SFS reservoirs, independently verified by
ERCE Australia Pty Ltd (ERCE) during the quarter. Existing Gross Best Estimate
(2C) Contingent Resources increased over 50%, with an additional gross 128
million barrels of oil equivalent (MMBOE), 81MMBOE Net Entitlement to 88E,
added from the Shelf Margin Delta (SMD-B) and Slope Fan System (SFS)
reservoirs, comprising(1):
Ø 115 million barrels (MMbbl) of Gross recoverable hydrocarbon liquids (oil
and natural-gas liquids), 73 MMbbl Net Entitlement to 88 Energy(1); and
Ø 68 billion cubic feet (BCF) of Gross recoverable gas, 43 BCF Net
Entitlement to 88 Energy(1)
· Strategic Development Opportunity Confirmed: Featuring the
critical characteristics required for future commercialisation and
monetisation, including:
Ø A combined Best Estimate (2C) Contingent Resources of Gross 251 MMbbl (159
MMbbl Net to 88E) of oil and natural-gas liquids (NGLs) across four stacked
reservoirs, accessible from single surface location(1);
Ø Premium 37- 40(o) API gravity oil successfully recovered from Hickory-1,
for a highly marketable and valuable light oil product(1); and
Ø Located on prime Alaskan State lands, directly adjacent to the
Trans-Alaskan Pipeline System (TAPS), and the Dalton Highway, with close
proximity to Deadhorse (oil and gas services hub);
· Successful outcomes from Hickory-1 delivered a platform for
monetisation of Project Phoenix, justifying further advancement. Near-term
advancement activities are focused on:
Ø Initiating a formal farm-out process to attract a strategic partner for
future drilling and development of Project Phoenix;
Ø Planning and design for a potential horizontal flow test and early stage
production system;
Ø 3(rd) party review by ResFrac of the Hickory-1 stimulation and flow design,
modelling production potential and optimising the completion strategy for a
potential horizontal well; and
Ø Constructive Partner Progress: Ongoing discussions with joint venture
partner Burgundy Xploration, LLC (Burgundy), could result in Burgundy carrying
all or part of 88 Energy's share of the 2025/2026 work program in exchange for
an additional working interest in the Project.
1. Refer announcement released to ASX on 18 September 2024 for full
details.
88E is not aware of any new information or data that materially affects the
information included in the relevant market announcement and that all material
assumptions and technical parameters underpinning the estimates continue to
apply and have not materially changed.
Project Leonis (100% WI)
· Planning ongoing for the Tiri-1 exploration well, designed to
test the Tiri prospect in the USB formation;
· Additional deeper resource potential identified and being
assessed within the acreage, including mapping of potential new resource, AVO
studies.and resource estimation; and
· Ongoing farm-out process seeking a funding partner ahead of
potential Tiri-1 drilling in 2026.
Namibia PEL 93 (20% WI)
· Data processing for the ~200-line km 2D seismic program is
ongoing, both in the field and at Earth Signal Processing in Calgary, with
final interpretation expected in Q4 2024;
· Program outcomes set to include:
Ø Validation of up to 10 independent structural closures;
Ø Delivery of a maiden independently certified Prospective Resource estimate
expected in H1 2025; and
Ø Identification of future potential drilling locations targeting the Damara
play.
Project Longhorn (~65% WI)
· Production marginally increased from 391 BOE per day gross
(average Q2 2024, ~63% oil) to Q3 2024 average of 395 BOE per day gross (~69%
oil). Q3 production was expected to be higher at around 450-460 BOE per day
gross but the operations experienced unplanned downtime. This included gas
plant downtime resulting in the need to vent gas with higher backpressure and
water station battery issues following a lightning strike requiring certain
wells to be shut-in for specific periods during the quarter.
· In June 2024, the Company received a cash flow distribution of
~A$0.7M, post final workover expenditure.
Corporate
· Cash balance of A$5.5 million and all Hickory-1 flow test payments
made and program closed;
· Burgundy obliged to pay outstanding cash call of ~US$4 million in
Q4 2024, which will further strengthen the balance sheet;
· Budget for the forward twelve-month activity schedule fully
funded for delivery, including Phoenix horizontal well pre-planning /
permitting and farmout activities, Leonis Tiri-1 planning and farmout
activites, PEL93 work program and Longhorn operations; and
· Lower Corporate costs for the 9 months in 2024 of $2.7M
compared to 9 months in 2023 of $4m (over a 30% reduction YTD).
Project Phoenix (~75% WI)
Project Phoenix is an oil-bearing conventional reservoir play identified
during the drilling and logging of Icewine-1 and Hickory-1 and adjacent to
offset drilling and testing. Project Phoenix is strategically located on the
Dalton Highway with the Trans-Alaskan Pipeline System bisecting the acreage.
Hickory-1 Summary
The Hickory-1 discovery well was drilled in February 2023 and flow tested
during the Alaskan winter season in 1H 2024. The testing operations focused on
the two shallower reservoirs, the Upper SFS (USFS) reservoir, previously
untested, and the SMD-B reservoir. Each zone was independently isolated,
stimulated, and flowed to the surface using nitrogen lift to facilitate
efficient well clean-up.
Quality and deliverability of both reservoirs was demonstrated via oil to
surface:
► USFS produced at a peak flow rate of over 70 bopd of light oil and
produced under natural flow, which differentiates the USFS from other adjacent
offset wells;
► SMD produced at a peak flow rate of ~50 bopd of light oil and little
to no measurable gas which presents a production rate with low gas to oil
ratio; and
► Multiple oil samples recovered measured oil gravities between 37 to
40 API (representing a valuable and marketable light crude oil).
For full details of the USFS and SMD test results please refer to the ASX
announcements dated 2 April 2024 for USFS and 15 April 2024 for SMD-B.
Figure 1: Project Phoenix multi-reservoir discoveries with significant light
oil resource confirmed.
Significant Contingent Resource Update for Project Phoenix
Major Milestone Achieved: New Contingent Resources estimates at Project
Phoenix for the SMD-B and SFS reservoirs, independently verified by ERCE
Australia Pty Ltd (ERCE)
Significant Resources Update: Existing Project Phoenix Gross Best Estimate
(2C) Contingent Resources increases by over 50%, with an additional gross 128
million barrels of oil equivalent (MMBOE)(1), 81 MMBOE Net Entitlement to
88E(1), added from the SMD-B and SFS reservoirs, comprising:
► 115 million barrels (MMbbl) of Gross recoverable hydrocarbon liquids
(oil and natural-gas liquids), 73 MMbbl Net Entitlement to 88 Energy; and
► 68 billion cubic feet (BCF) of Gross recoverable gas, 43 BCF Net
Entitlement to 88 Energy
Multi-Reservoir Discovery: Estimates from ERCE (SMD-B and SFS reservoirs) and
Netherland, Sewell & Associates, Inc (NSAI) Basin Floor Fan (BFF)
reservoir confirm Project Phoenix as a robust multi-reservoir discovery, with
a total combined Gross Best Estimate 2C Contingent Resource of approximately
378 MMBOE (239 MMBOE Net Entitlement to 88E)(1)
Material Upside Potential: Prospective Resources of Net Mean Unrisked 155
MMbbl(1)(,2) independently verified by Lee Keeling and Associates Inc, in the
Kuparuk (undrilled), SMD-A and C reservoirs (oil interpreted on logs at
Hickory-1), offer compelling additional upside potential. Unrisked net 3U
(high) of 321 MMbbls, 2U (best) of 153 MMbbls, 1U (low) of 53 MMbbls(1,2). The
geological Chance of Success (CoS) of these prospects has been estimated as
71%, 81% and 81% respectively.
Figure 2: Project Phoenix confirmed 88 Energy Net Entitlement Resources
summary showing untested potential upside. This information should be read
in conjunction with Tables 1 to 7 and the cautionary statement in the ASX
announcement dated 18 September 2024, which contains further information
relating to the contingent and prospective resource estimates.
1. Refer announcement released to ASX on 18 September 2024 for full
details
2. Cautionary Statement in relation to Prospective Resources: The
estimated quantities of petroleum that may be potentially recovered by the
application of a future development project relate to undiscovered
accumulations. These estimates have both an associated risk of discovery and a
risk of development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of potentially
recoverable hydrocarbons. 88E is not aware of any new information or data that
materially affects the information included in the relevant market
announcement and that all material assumptions and technical parameters
underpinning the estimates continue to apply and have not materially changed.
Advancement Activities and Key Milestones
The Project Phoenix joint venture (JV) is currently planning a flow test of
the SMD reservoir over an extended period at the Franklin Bluffs gravel pad in
CY 2025/26. The reuse of the Franklin Bluffs gravel pad (previously used to
drill the Icewine-1 and 2 wells) offers considerable cost savings over a
purpose-built ice pad without compromising the objectives. The design phase
for the horizontal well is progressing with ongoing assessments by ResFrac to
optimise the completion strategy.
Joint Venture potential transaction
In parallel, 88 Energy is in advanced discussions with its JV partner Burgundy
Xploration, LLC (Burgundy) regarding a potential transaction after Burgundy
completed an extensive review (internal and external) of Project Phoenix data.
The potential transaction involves Burgundy providing a carry to 88E across an
anticipated 2025/26 work program including the drilling, completion and
extended flow testing of a horizontal well at the Franklin-Bluffs gravel pad
adjacent to the Dalton Highway, in return for additional working interest in
Project Phoenix:
► Any carry is subject to Burgundy raising the capital required
through a near-term public listing
► Burgundy to pay US$0.35M by 31 October 2024 in return for the
Company extending the December 2023 standstill agreement for outstanding Flow
Test AFE costs of ~US$3M until 31 December 2024, to allow Burgundy time to
complete its intended public listing and raise capital towards the advancement
of Project Phoenix
► Burgundy understands that under the current standstill agreement, if
payment of the flow test cash call is not made by 31 December 2024, this will
require Burgundy to transfer to 88E-Accumulate 50% of Burgundy's working
interest in Project Phoenix's Toolik River Unit leases.
► The Company maintains its rights under the joint operating agreement
(JOA) 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.
There is no guarantee that any transaction with Burgundy will be completed.
Accordingly, the Company intends to launch a formal farm-out process in Q4
2024 to ensure progress continues, irrespective of the outcome of Burgundy's
listing process.
Project Phoenix key milestones
Indicative Project Phoenix development timeline(1) H1-24 H2-24 H1-25 H2-25 H1-26 H2-26
Successful Hickory-1 flow test flows light crude oil to surface P
Post-well analysis and updated Contingent Resource Estimate P
Targeted farmout to de-risk and provide pathway to production test n n
Farm-out program to secure funding for forward program n n n
Planning/permitting/design for horizontal production test 1 (#_ftn1) n n n n
Extended horizontal production test(1) n n
1 This timeline is indicative and subject to change. The Company reserves the
right to alter this timetable at any time. Horizontal production test subject
to farm-out/funding as well as government and other approvals.
Project Leonis (100% WI)
The Company reported a maiden Prospective Resource net mean estimate of 381
million barrels (MMbbls) of recoverable oil in the newly named Tiri Prospect
(Upper Schrader Bluff Formation/USB) for Project Leonis.
Unrisked net 3U (high) of 671 MMbbls, 2U (best) of 338 MMbbls and 1U (low) of 167 MMbbls(1,2).
The initial Prospective Resource estimate followed an extensive data suite
review including 3D and 2D seismic data, well logs from Hemi Springs Unit-3,
Hailstorm-1 and nearby wells adjacent to Project Leonis acreage, along with
extensive petrophysical analysis and mapping.
The USB formation is the same proven producing zone as found in nearby
Polaris, Orion and West Sak oil fields to the north-west.
These proven USB producers served as important calibration points for the
Leonis petrophysical model. The Leonis USB prospect has been fully delineated
and mapped following a review of reprocessed 3D seismic data and a 3rd party
dedicated fault mapping study to assist in prospect definition.
Project Leonis: Forward Program
Continuing on from the successful outcomes at Hickory-1, Fairweather, LLC has
been engaged and is progressing the planning for the newly named Tiri-1
exploration well. The well will be designed to drill, log and test the Tiri
Prospect in the USB formation. The company intends to utilise the existing
gravel pad at the Hemi Springs Unit-3 well location, to reduce costs.
Timing for drilling the Tiri-1 exploration well is dependent on securing a
successful farm-out partner.
Additional to the Tiri prospect in the USB, 88 Energy has also identified, and
is assessing, deeper prospective zones within the acreage. The Company is
currently mapping the potential new resource and advancing AVO studies and
resource estimation. This work is expected to be completed in Q4 2024 and
will add to the extensive data set and resource potential currently being
marketed for farm-out.
1. Refer announcement released to ASX on 4 June 2024 for further
details
2. Cautionary Statement in relation to Prospective Resources: The
estimated quantities of petroleum that may be potentially recovered by the
application of a future development project relate to undiscovered
accumulations. These estimates have both an associated risk of discovery and a
risk of development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of potentially
recoverable hydrocarbons. 88E is not aware of any new information or data that
materially affects the information included in the relevant market
announcement and that all material assumptions and technical parameters
underpinning the estimates continue to apply and have not materially changed.
Namibia PEL 93 (20% WI)
Namibia has been identified as one of the last remaining under-explored,
onshore frontier basins and one of the world's most prospective new
exploration zones. PEL 93 is more than 10 times larger in surface area than 88
Energy's Alaskan portfolio and more than 70 times larger than Project Phoenix.
Historical assessment by JV operator and majority working interest owner (55%)
Monitor Exploration Limited (Monitor) utilised a combination of geological and
geophysical techniques and interpretation of the data produced by them to
identify the Owambo Basin. This validated the significant potential of the
acreage which was awarded as PEL 93 in 2018, identifying ten (10) independent
structural closures from airborne geophysical methods and partly verifying
these using existing 2D seismic coverage.
In July 2024, Polaris Natural Resources Development Ltd (Polaris) successfully
acquired 203-line km of 2D seismic data with data processing ongoing, both
in-field and at Earth Signal Processing in Calgary with final interpretation
to be finalised in Q4 2024.
Results of the new 2D seismic acquisition will be integrated with existing
data to refine current prospect interpretation. Expected program outcomes
include:
Ø Validation of up to 10 independent structural closures;
Ø Delivery of a maiden, independently certified, Prospective Resource
estimate expected in H1 2025; and
Ø Identification of future potential drilling locations targeting the Damara
play.
Recent drilling results on nearby acreage have highlighted the potential of a
new and underexplored conventional oil and gas play in the Damara Fold belt,
referred to as the Damara Play.
Neighbouring leaseholder Reconnaissance Energy Africa Ltd (Recon Africa)
(TSXV: RECO) announced the spud of its first well in July 2024. Naingopo-1 on
Petroleum Exploration Licence 73 (PEL73) in the Owambo Basin, which is
modelled to be a continuation of the interpreted opportunity at PEL93. On 3
October 2024, Recon Africa announced that it will penetrate its primary
objective of the Damara Fold Belt play imminently and reach total depth
towards the end of October.
In August 2024, growth-focused oil and gas acquisition, development, and
production company BW Energy Limited (BW Energy) farmed into Recon Africa's
Namibian acreage. BW Energy acquired a 20% working interest in PEL 73 with a
US$16 million equity investment, to participate in two Damara Fold Belt
exploration wells and a 3D seismic program and with an option to participate
in two Rift Basin exploration wells over a 2-year period.
This new investment demonstrates strong industry and capital market support
for the potential of the Owambo Basin and the Damara Play.
Project Longhorn (~65% WI)
Production increased marginally from 391 BOE per day gross (Q2 2024 average,
~63% oil) to 395 BOE per day gross (Q3 2024 average, ~69% oil). Q3 production
was expected to be higher at around 450-460 BOE per day gross but the
operations experienced unplanned downtime. This included gas plant downtime
resulting in the need to vent gas with higher backpressure and water station
battery issues following a lightning strike requiring certain wells to be
shut-in for specific periods during the quarter.
In June 2024, the Company received a cash flow distribution of ~A$0.7M, post
final workover expenditure.
Peregrine & Umiat (100% WI)
88 Energy was successful in securing a suspension for Project Peregrine on 1
December 2023 for an initial period of 12 months due to the proposed new
regulations governing the management of surface resources in the National
Petroleum Reserve-A (NPR-A). On 25 June 2024, the Company applied for
suspension of the Umiat Unit and leases on the same basis as the Project
Peregrine suspension, requesting an initial 1-year suspension that will be
reviewed as required. On 31 July 2024 The Bureau of Land Management Alaska
approved a 12-month suspension of the Umiat Unit and leases from 1 July 2024
to 30 June 2025.
During the suspension period, 88 Energy will continue the refinement of
internal geological and geophysical models/interpretations. The suspension
will relieve 88 Energy of the obligation to pay Umiat lease rentals due in Q4
2024 of ~A$0.1 million.
Finance
As at 30 September 2024, the Company's cash balance was A$5.5M.
The ASX Appendix 5B attached to this quarterly report contains the Company's
cash flow statement for the quarter. The material cash flows for the period
were:
· Exploration and evaluation expenditure of A$2.04M (June 2024
quarter: A$17.3M) predominantly related to final payments for Hickory-1, which
have now been closed out.
· Administration, staff, and other costs of A$0.7M (June 2024
quarter: A$1.1M) which included fees paid to Directors and consulting fees
paid to Directors of A$0.18M. Lower salary costs between quarters included
additional management salary reductions in Q3 and other corporate cost
reductions implemented.
· Burgundy obligated to pay outstanding cash call of ~US$4
million (flow test, G&A/G&G) in Q4 2024 which will further strengthen
the balance sheet. Burgundy paid US$0.15M in Q3.
Information required by ASX Listing Rule 5.4.3
Project Name Location Interest at beginning of Quarter Interest at end of Quarter
Net Area (acres)
Phoenix Onshore, North Slope Alaska 44,562 ~75% ~75%
Icewine West(2) Onshore, North Slope Alaska - ~75% ~0%
Peregrine(1) Onshore, North Slope Alaska (NPR-A) 125,735 100% 100%
Longhorn Onshore, Permian Basin Texas 2,830 ~65% ~65%
Leonis Onshore, North Slope Alaska 25,431 100% 100%
Umiat(3) Onshore, North Slope Alaska (NPR-A) 17,633 100% 100%
PEL 93 Onshore, Owambo Basin, Namibia 914,270 20% 20%
1. Refer announcement released to ASX on 21 December 2023 regarding
Project Peregrine 12-month suspension until 30 November 2024
2. Acreage that was deemed non-core to 88 Energy was relinquished during
the quarter, providing a reduction in lease costs from a focused strategy that
unlocks value from key acreage positions with strategic locations, as
announced to the ASX on 4 June 2024
3. Refer 2024 Half Yearly announcement released to ASX on 2 September
2024, regarding Umiat 12-month suspension until 30 June 2025
Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting
contained in this announcement was prepared by, or under the supervision of,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 40 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist / Geophysicist who
has sufficient experience that is relevant to the style and nature of the oil
prospects under consideration and to the activities discussed in this
document. Dr Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the prospective resource
estimates to be fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and industry
memberships appear on the Company's website, and both comply with the criteria
for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.
This announcement has been authorised by the Board.
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Ashley Gilbert, Managing Director
Tel: +61 (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 (8)9268 2829
Cavendish Capital Markets Limited Tel: +44 (0)207 220 0500
Derrick Lee Tel: +44 (0)131 220 6939
Pearl Kellie Tel: +44 (0)131 220 9775
Information required by ASX Listing Rule 5.4.3 - Lease Schedules as at 30
September 2024
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
88 Energy Limited
ABN Quarter ended ("current quarter")
80 072 964 179 30 September 2024
Consolidated statement of cash flows Current quarter Year to date (9 months)
$A'000
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (392) (1,221)
(e) administration and corporate costs (308) (1,465)
1.3 Dividends received (see note 3) - -
1.4 Interest received 28 104
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - -
1.9 Net cash from / (used in) operating activities (672) (2,582)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements (427) (1,398)
(c) property, plant and equipment - -
(d) exploration & evaluation (2,043) (23,197)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other - Joint Venture Contributions 224 3,205
Other - Distribution from Project Longhorn 670 1,897
Other - Return of Bond - -
2.6 Net cash from / (used in) investing activities (1,576) (19,493)
3. Cash flows from financing activities - 9,696
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - (670)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - 9,026
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 7,882 18,183
4.2 Net cash from / (used in) operating activities (item 1.9 above) (672) (2,582)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (1,576) (19,493)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - 9,026
4.5 Effect of movement in exchange rates on cash held (125) 375
4.6 Cash and cash equivalents at end of period 5,509 5,509
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 5,509 7,882
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 5,509 7,882
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 186
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
6.1 Payments relate to Director and consulting fees paid to
Directors. All transactions involving directors and associates were on normal
commercial terms.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$US'000
$US'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (672)
8.2 (Payments for exploration & evaluation classified as investing activities) (2,043)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (2,715)
8.4 Cash and cash equivalents at quarter end (item 4.6) 5,509
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 5,509
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.03
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer:
The total outgoings are higher in Q3 than expected in subsequent quarters due
to the final payments associated with the Hickory flow test program. The
entity does not expect the same level of outgoings in Q4 2024 and 2025 and has
more than 12 months of funding available based upon the current activity
schedule. Funds available will be further increased when Burgundy Xploration
pays its outstanding cash call of ~US$4 million.
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer:
There is no requirement to raise further funds based on anticipated
expenditure with ongoing forecast cash distributions from Project Longhorn as
well as ~US$4 million expected payment from Burgundy.
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer:
The entity's business objectives are on track with sufficient cash available
as per the answers above.
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
1.1 Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 29 October 2024
Authorised by: By the Board
(Name of body or officer authorising release - see note 4)
1.2 Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
(#_ftnref1)
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDEAKENASKLFEARecent news on 88 Energy
See all newsREG - AIM - AIM Notice - 13/05/2025
AnnouncementREG - AIM 88 Energy Limited - Restoration - 88 Energy Limited
AnnouncementREG - 88 Energy Limited - Completion of Consolidation of Capital
AnnouncementREG - AIM 88 Energy Limited - Suspension - 88 Energy Limited
AnnouncementREG - 88 Energy Limited - Temporary Suspension of Trading
Announcement