Progress made with farm-out of 88 Energy's Project Icewine
88 Energy Limited (DI)
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16:49 26/04/24
88 Energy updated the market on the farm-out process for its conventional prospect portfolio at Project Icewine, located on the Central North Slope of Alaska on Tuesday.
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The ASX and AIM-traded firm said it had executed an exclusivity agreement with Burgundy Xploration, with a preferred bidder to facilitate near-term operational activity while final terms were agreed on the proposed farm-out agreement.
It said exclusivity had been granted by the joint venture parties until 31st August, with customary exclusivity undertakings.
A $0.5m payment by the preferred bidder to the joint venture parties would be made to facilitate the incurring of initial agreed costs associated with the 2020 drilling program.
“[The] exclusivity fee [is] non-refundable unless the farm-out agreement is not finalised owing to an act or omission of the joint venture parties,” the 88 Energy board said in its short statement.