88 Energy Limited Project Phoenix -- JV Partner Update (7007V)
December 05 2023 - 1:15AM
UK Regulatory
TIDM88E
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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END
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