88 Energy lines up a rig for its Augusta-1 well, but funding is still open

88 Energy plans to drill the Augusta-1 exploration well on Alaska's North Slope in the first quarter of calendar 2027. The company calls it its highest-priority target. On 7 May 2026 it said it had secured Nordic-Calista's Rig-3 for the job, a rig it also used in its 2019 and 2020 campaigns.

What is planned

• Augusta-1 spud: Q1 CY2027, during the Alaskan winter drilling season. The company says the timing is "indicative and subject to change".
• Franklin Bluffs-1H production test: stated in February 2026 as "mid-2026" and also as planned for the second half of CY26. The inputs show no later update, so the timing is unconfirmed.

Why Augusta matters

88 Energy holds a 100% working interest in the South Prudhoe acreage, with a 16.7% royalty. The May announcement put the Ivishak and Kuparuk reservoirs at 64.4 MMbbl (best case, gross, unrisked), or 53.7 MMbbl net, with a 48% geological chance of success. The most recent Augusta estimate in the company's disclosures is a larger 133.7 MMbbl (P50 prospective, stated 22 July 2026). The inputs do not explain the difference, though the May announcement says further Brookian potential is still under evaluation.

These are prospective resources, meaning undiscovered. If the well finds nothing, none of that volume exists. The company's booked reserves are small by comparison. They are the Bighorn Phase 2 leases (1.97 MMbbl oil and 3.86 bcf gas, 45% interest) and Phase 3 (0.88 MMbbl oil and 1.59 bcf gas, 64.4% interest). Its other estimates are older, such as Alpha Lead (71 MMbbl, 75%, 2019) and Assaka (144 MMbbl, 25%, 2014).

What is uncertain

The company says drilling is subject to securing an appropriate funding structure. It began a formal farm-out process in February 2026, which means seeking a partner to share costs and risk. The company says this is its preferred route. Its pro-forma cash was about A$10 million at 31 March 2026. The rig deal included a US$395,000 commitment fee and a minimum of 30 days at the base operating rate.

If a farm-out succeeds, 88 Energy would likely hold less than its current 100% of Augusta. The company says it aims to keep meaningful exposure to the upside.