REG - 88 Energy Limited - Project Phoenix – JV Partner Update

88 EnergyAnnouncement

05/12/2023 07:30

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RNS Number : 7007V  88 Energy Limited  05 December 2023

 

This announcement contains inside information

5 December 2023

 

88 Energy Limited

PROJECT PHOENIX - JV PARTNER UPDATE

Highlights

·   Burgundy Xploration, LLC (Burgundy) has secured US$2.0M in initial
funding that has been agreed to be paid to 88 Energy immediately in part
settlement of outstanding cash calls

·  88 Energy has agreed to a standstill of the default until 31 January 2024
for Burgundy to pay the remaining outstanding amount

·   If Burgundy is unable to cure and pay the remaining outstanding amount
in full by 31 January 2024, 88 Energy will receive 50% of Burgundy's working
interest in Project Phoenix

·    Burgundy remains committed to funding their share of the Hickory-1
flow test program

·  88 Energy is fully funded from the recent Placement and receipt of these
funds and is focused on delivering the successful flow testing of multiple
reservoirs at the Hickory-1 well in Q1 2024

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to advise that it has received US$2.0 million in funds from its
Project Phoenix JV partner Burgundy Xploration, LLC (Burgundy) as part
settlement of the US$3.745 million in unpaid cash calls (represented by
US$3,452,967 in relation to outstanding cash calls due plus interest of
US$292,505).

The Company via its 100%-owned subsidiary Accumulate Energy Alaska, Inc
(88E-Accumulate) has also entered into a further standstill agreement with
Burgundy which provides additional time for Burgundy to cure and pay the
remaining outstanding funds due of US$1.745 million by 31 January 2024. If
Burgundy fails to pay by this date, Burgundy will immediately transfer to
88E-Accumulate 50% of Burgundy's working interest in all of Project Phoenix's
Toolik River Unit leases (or a pro rata amount of Burgundy's working interest
if Burgundy pays some but not all of the outstanding cash calls amount by 31
January) (Transfer interest).

Burgundy will also within 5 days after 31 January 2024, sign and return the
Hickory-1 flow test AFE at the revised working interest level post the
Transfer interest. If Burgundy has not made payment for its share of the AFE
cost within six months after the due date of the AFE cash call then Burgundy
will transfer 50% of its remaining working interest in the Toolik River Unit
leases, post the Transfer interest.

The Company maintains its rights under the joint operating agreement 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.

Burgundy continues to support the progression of the upcoming Hickory-1 flow
test program, and it has informed the Company it intends to fund its share of
the flow test program.

 

 

 

This announcement has been authorised by the Board.

 

 

Media and Investor Relations:

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 8 9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations

 Michael Vaughan                                  Tel: +61 422 602 720

 EurozHartleys Ltd
 Dale Bryan                                       Tel: + 61 8 9268 2829

 Cavendish Capital Markets Limited                Tel: +44 (0)20 7397 8900
 Derrick Lee                                      Tel: +44 (0)131 220 6939
 Pearl Kellie                                     Tel: +44 (0)131 220 9775

 

 

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