88 Energy's Augusta-1 well in Alaska targets Q1 2027, but funding is still unsecured

88 Energy Limited plans to drill its Augusta-1 exploration well on Alaska's North Slope in the first quarter of 2027, during the Alaskan winter drilling season. The company calls the timing indicative and subject to change, and the well depends on funding that has not yet been secured.

What is planned

Augusta-1 is the company's highest-priority target. It sits in the South Prudhoe acreage, where 88 Energy holds a 100% working interest. In May the company contracted Nordic Rig-3 for the well, with a US$395,000 commitment fee, and a Nabors 58-man camp. Final well planning, permitting and long-lead procurement are continuing.

Why it matters

Augusta is the largest single estimate among the company's assets. Its best-case (P50) prospective resource is 133.7 million barrels gross, or 111.4 million net. That is up from 64 million barrels in the May rig announcement, which covered only the Ivishak and Kuparuk reservoirs, after a South Prudhoe upgrade added a first Brookian estimate. The company puts the chance of success at 48%. Prospective resources are undiscovered, so a dry hole is a real possibility.

Other assets are smaller or older:

• Alpha Lead: 71 million barrels prospective (75% interest, estimate from 2019)
• Assaka: 144 million barrels prospective (25% interest, estimate from 2014)
• Bighorn Phase 2 and Phase 3: reserves of 1.97 and 0.88 million barrels of oil (45% and 64.4% interest)

What is uncertain

The company began a farm-out process in February 2026 and says talks continue with multiple parties. A farm-out would bring in a partner to fund part of the well in exchange for a share of the project. If one is agreed, 88 Energy's stake in Augusta would fall below 100%.

The balance sheet is thin for a well of this kind. Cash was A$8.2 million at 30 June, with no debt, and capitalised exploration assets stood at A$79.1 million. The company reported no production and a half-year net loss of A$1.78 million.

A separate item is the Franklin Bluffs-1H production test. It was first described as mid-2026 and later as the second half of 2026. The company has not stated a firmer date.

In Namibia, the PEL 93 joint venture applied to enter its next exploration period from 3 October 2026. It proposes at least one well and giving up 50% of the area. The company has not announced that the renewal has been granted.

The next signals to watch are a farm-out agreement, any change to the Q1 2027 spud date, and the Franklin Bluffs-1H test result.