88E acquires more production assets in Texas, USA

Our oil and gas investment 88 Energy (ASX: 88E) just acquired more production assets in Texas, USA.

88E already holds a ~73% non operated interest in existing production assets in Texas where 88E has ~1.8 million barrels of oil equivalent in reserves.

The existing projects are already producing at ~400 BOE per day gross (~ 75% oil).

Today, 88E added to its existing project portfolio by acquiring a ~45% interest in ~435 acres of ground 6km to the south of its existing assets.

88E is paying US$1.1M for its share of the project which currently has ~1.1 million barrels of oil equivalent in reserves with exploration upside to add a further 300k barrels.

The short term catalyst for 88E and its JV partner is to drill two production wells in 2H 2023 which is expected to increase the JV’s production rate by 160-200 BOE gross per day (~75% oil).

After drilling the two wells on the newly acquired ground and running workover programs across the existing projects, the joint venture expects to be producing a total of ~500 barrels of oil equivalent (~75% oil) by the end of this year.

What’s next for 88E?

While today’s news comes from 88E’s production assets in the Permian Basin in Texas, USA, our focus is still on the flow test program planned for the end of the year/early 2024.

Below is what 88E expects to deliver between now and then: