Texas divestment and Alaskan focus: what 88 Energy just told the market
88 Energy’s half-year to 30 June 2025 is all about sharpening the portfolio. The company has agreed to sell its Texas production interests, doubled down on Alaska with a fully carried horizontal test at Project Phoenix, and pushed Project Leonis and Namibia forward without reaching for the equity tap.
Below I break down the key project updates and the numbers, and give a view on what matters for shareholders.
Project Phoenix – fully carried to a mid-2026 horizontal test
Phoenix is an advanced conventional oil project on Alaska’s North Slope. The Hickory-1 discovery well confirmed light oil in 2024 from the SMD-B and Upper SFS targets and underpins a horizontal production test plan.
- Total 2C Contingent Resources: 239 MMBOE net to 88E. “2C” means the mid-case estimate of discovered, but not yet commercial, resources.
- Farm-out signed with Burgundy Xploration LLC in February 2025. “Farm-out” means 88E trades a slice of working interest (WI) for funding.
- Phase 1: Burgundy to fund US$29 million of the CY25/26 work programme, including a horizontal well and production testing scheduled for mid-2026. 88E is fully carried and would hold 35% WI after Phase 1.
- Phase 2 (subject to Phase 1 success): up
