- 0188E secures up to US$10.9m in South Prudhoe farm-out.
- 02WAO takes 40%; 88E retains 60% and operatorship.
- 03Augusta-1 targets 133.7m barrels; due Q1 2027.
88 Energy (ASX: 88E) has completed a farm-out of its South Prudhoe project in Alaska, bringing in Westlawn Americas Offshore (WAO) to help fund its first exploration well.
The binding transaction provides up to US$10.9 million (A$15.5m) towards the Augusta-1 drilling and evaluation program and associated project expenditure.
WAO will earn a 40% working interest in South Prudhoe, while 88 Energy retains 60% ownership and operatorship of the North Slope project.
The agreement comes ahead of the planned first-quarter 2027 drilling of Augusta-1, which will test several conventional oil reservoir targets.
The 52,269-acre South Prudhoe project lies south of the producing Prudhoe Bay and Kuparuk River units, near existing transport and processing infrastructure.
Reduced Well Exposure
WAO has committed US$9.2m (A$13.1m) towards Augusta-1 drilling and evaluation, covering about 52% of the current well budget rather than its 40% ownership share.
The funding arrangement covers the first US$3.6m (A$5.1m) of drilling expenditure, followed by 40% of remaining costs under the agreed budget as well as a further US$1.7m (A$2.4m) to support non-well expenditure including geological and geophysical work, leases, and long-lead equipment for a potential flow test.
88 Energy remains responsible for approximately US$8.3m (A$11.9m) in well costs and additional non-well and flow-test preparation commitments, with existing cash and strategic funding initiatives under consideration.
WAO is a Houston-based upstream investor whose entry into South Prudhoe followed technical and commercial due diligence, making this its first North Slope investment.
The parties have outlined a framework to assess further North Slope opportunities together, with 88 Energy intended to retain 60% and operatorship of any jointly pursued new acreage.
Stacked Oil Reservoirs
Augusta-1 is scheduled to spud in the first quarter of calendar 2027 and targets 133.7 million barrels of gross unrisked prospective oil resources on a 2U estimate.
The prospect combines the Ivishak, Kuparuk, and Brookian reservoir intervals, with the planned borehole designed to evaluate multiple independent objectives.
Well location work, access planning, and key contracts including arrangements for the Nordic-Calista Rig-3 drilling rig and a dedicated Arctic camp have also been advanced.
“We have secured a partner that adds genuine value, having extensive Alaskan experience, deep upstream expertise, and a long-term investment approach that is highly complementary to our own ambitions on the North Slope,” managing director Ashley Gilbert said.
“We are excited to be working with their team as we progress towards unlocking the full potential of South Prudhoe and beyond.”
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