88 Energy narrows half-year loss as Alaska drilling plans advance

88 Energy Ltd on Thursday reported a narrowed first-half loss, while advancing plans to drill a key exploration well in Alaska.

The Perth, Australia-based oil and gas explorer, with operations in Alaska and Namibia, said pretax loss for the six months ended June 30 narrowed to AUD1.8 million, around £952,187, from AUD20.5 million a year earlier, when it booked a AUD16.6 million impairment of an investment in an associate.

88 Energy did not report any revenue, unchanged from a year earlier, as it does not currently have producing oil and gas assets.

At its South Prudhoe project in Alaska, described as its "highest priority" project, 88 Energy estimates of potential oil resources 768.9 million barrels.

The North-West Hub at South Prudhoe is the planned location for the Augusta-1 exploration well, which is designed to test up to 133.7 million barrels of potential oil resources.

88 Energy said preparations for the Augusta-1 exploration well at the North-West Hub at South Prudhoe advanced during the first half, including well planning, permitting, vendor engagement, rig and camp contracting, and road and facility access. Farm-out discussions were also progressing during the period.

The well is targeted to start drilling in the first quarter of 2027, subject to funding and permitting, 88 said.

In the second half, 88 Energy plans to continue the South Prudhoe farm-out process and associated funding discussions, while advancing permitting, contracting, procurement and logistics for Augusta-1.

At Kad River East, Alaska, 88 Energy plans to complete its interpretation of 3D seismic data and progress a maiden internal estimate of potential oil resources during the second half of 2026.

At Project Phoenix, 88 Energy plans to continue supporting Burgundy Xploration LLC's funding and proposed US listing process, while advancing planning for the Franklin Bluffs-1H well. The planned March 2027 start to drilling was pushed back during the first half and remains dependent on Burgundy completing its funding.

In Namibia, 88 Energy plans to progress work towards entering the second renewal period for its Petroleum Exploration Licence 93, including the proposed drilling of at least one exploration well, subject to joint venture and Namibian government approval.

Shares in 88 Energy were down 4.8% at 1.00 pence on Thursday afternoon in London.

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