88 Energy takeover target XCD upgrades resource estimates for Project Peregrine
Consultant ERC Equipoise (ERCE) outlined 1.63bn barrels of mean prospective resources across three targets – Merlin, Harrier, and Harrier Deep.
“At a prospect level, both the COS and volumes have increased as an exploration well is more likely to encounter hydrocarbons, but also more likely to encounter multiple reservoir layers, and as a result, the total success case numbers have increased,” XCD said in a statement.
XCD also told investors that holders of an overriding royalty interest (ORRI) for Project Peregrine have agreed to reduce the royalty rate to 1.3% whilst the explorer expanded its area of mutual interest.
88 Energy and XCD earlier this month agreed a recommended deal for the former to acquire the latter in an all-paper-based transaction. XCD shareholders will receive 2.4 88 Energy shares.
88 Energy said the combination creates an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.
It will have improved scale, market presence and funding capability, and share liquidity, according to the AIM and ASX-listed firm.
The new company will leverage 88 Energy’s geological and operational expertise, specific to the North Slope of Alaska, where it has drilled four wells and acquired several 2D and 3D seismic data.