- 88 Energy (88E) finishes FY21 debt-free, in the black and awaiting post-well test results from Merlin-1 well exploration efforts completed in April
- Definitive results and interpretation from the 5267-metre drill effort are set to be released “imminently”
- 88E reported a profit for the half-year following a $4 million loss during the prior corresponding period
- The company also cashed in on US$18.7 million (A$25.4 million) in Alaskan oil and gas credits to pay off its outstanding debt facility
- 88 Energy shares are down 8.33 per cent to trade at 4.4 cents
88 Energy (88E) has seen out FY21 debt-free, in the black and awaiting post-well test results from Merlin-1 well exploration efforts completed in April.
According to an update from 88E in May, further investigations were required to validate the actual percentage of hydrocarbon in downhole slope samples collected from the well, which sits within the greater Peregrine Project.
While the explorer maintains these horizons could contain mostly water, it affirms the presence of oil was highly encouraging.
According to 88E, definitive results and interpretation from the 5267-metre drill effort are set to be released “imminently”.
88 Energy’s share of the Merlin-1 well costs are expected to total approximately US$9 million (A$12.2 million).
Shortly after completing testing, the company entered an agreement to acquire the remaining 50 per cent working interest in Project Peregrine from Alaska Peregrine Development company for a combination of cash and shares.
During the quarter 88E cashed in on Alaskan oil and gas credits to the tune of US$18.7 million (A$25.4 million) which went towards paying off its outstanding US$16.1 million (A$21.9 million) debt facility.
88 Energy also reported a $445,446 profit for June 30 2021, compared to a $4 million loss for the prior corresponding period and a $14.58 million cash balance as at June 30.
88 Energy shares were down 8.33 per cent at 2:06 pm AEST to trade at 4.4 cents.