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88 Energy Ltd - Alaska-focused oil producer - Buys a further 50% stake in Alaskan oil drilling area Project Peregrine for USD14 million in new 88 Energy shares. 88 Energy now owns 100% of Project Peregrine, with the deal facilitating the continuation of the exploration programme at the site next winter.
88 Energy will pay USD14 million in shares, to be issued in several tranches. In addition, Alaska Peregrine Development Company LLC will receive a 1.5% overriding royalty interest on future production from the Project Peregrine licences. A number of conditions are also in place for the deal, including a USD10 million cash payment on achieving gross proved and probable reserves of 100 million barrels within 36 months.
Managing Director Ashley Gilbert comments: "This is an excellent outcome for our shareholders as we now have full control of the project.
"It was deemed in the best interests of both parties for 88 Energy to consolidate its interest in the project creating the best opportunity to maximise value for all stakeholders. Having 100% working interest in both Project Peregrine and the neighbouring Umiat Oil Field, opens up significant potential for the company to realise value in the region."
Current stock price: 1.17 pence
Year-to-date change: up sharply from 0.46p on December 31
By Will Paige; willpaige@alliancenews.com
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