88 Energy (AIM:88E) said its competitive farm-out process for the South Prudhoe Project on Alaska's North Slope has progressed as planned, with multiple counterparties completing detailed technical diligence.
The Australian oil and gas explorer said this diligence provided strong validation of the Augusta prospect and the wider South Prudhoe Project.
The company has received a number of bids and is now negotiating commercial terms, targeting finalisation of definitive transaction documentation with a preferred counterparty, along with any required approvals, to complete the farm-out by mid-fourth-quarter.
South Prudhoe's 2U prospective resource estimate was revised up around 35% to 768.9 million barrels of oil gross (640.7 million barrels net to 88 Energy) in May, split across a North-West Hub and a South-East Hub, and including a maiden Brookian estimate for West Sak and Upper Schrader Bluff.
The planned Augusta-1 exploration well, central to that resource base, is sized to test up to 133.7 million barrels gross unrisked 2U prospective resources (111.4 million barrels net) across the stacked Ivishak, Kuparuk and Brookian reservoir intervals.
Preparations for the well continue alongside the farm-out talks, with more than 80% of vendor services and long-lead items now selected or secured and the well bond posted.
Key permitting activities remain on track for completion during the fourth quarter, the company said, supporting a targeted spud in the first quarter of 2027.
Drilling of Augusta-1 remains subject to completion of the farm-out and financing.