88E raises $5M for exploration on US oil project

Our Alaskan oil explorer 88 Energy (ASX: 88E) is now funded to progress its Alaskan North Slope assets.

88E just raised $5M at 2.9c per share in an “oversubscribed raise”.

And 88E made it pretty clear which well to be watching out for next…

88E’s Augusta prospect - which is targeting a 64M barrel prospective resource - next to existing discoveries and existing infrastructure.

Targeting drilling of the well in Q1-2027.

(Augusta is a part of the South Prudhoe project that 88E acquired in late 2025).

(source)

(source)

Located within the South Prudhoe project area, Augusta is essentially "in the shadow of the headframe" (looking close to existing resources) of the Trans-Alaska Pipeline System (TAPS).

The Target: Low-risk Ivishak and Kuparuk reservoirs - the same formations that have produced billions of barrels in the fields immediately to the north.

The Reasoning: Because it’s so close to infrastructure, any discovery here has a much lower "hurdle rate" for commercialisation.

So this strategy is thinking ahead about building a path to production, not just upfront at exploration.

Here is where that Augusta prospect sits relative to the existing discoveries and the infrastructure:

(source)

(source)

Last year, eyes were on 88E as they successfully flowed oil to surface at the Hickory-1 well, a project located right next door to their $700M+ neighbor, Pantheon Resources.

See our deep dive on that project here.

While Project Phoenix is still a big part of the 88E story, today's announcement shows 88E is diversifying its "shots on goal" by planning its own wells on prospects that are easier to commercialise.

While still getting exposure to whatever happens at Phoenix from the farm-out deal 88E signed with its JV partner.

(88E is being "carried" for the costs of a horizontal well and extended production test at Phoenix, planned for later in 2026). (source)

So we still get a “free kick” on project Phoenix - while we wait for the drilling window to open up for the Augusta prospect in Q1-2027.

What’s next for 88E?

With A$5M in fresh capital and a pro-forma cash balance bolstered to over A$10M, 88E has enough runway for at least the next 12 months.

We are looking for three major catalysts in the coming quarters:

1. Permitting milestones for the Augusta-1 well.
2. Operational updates from Project Phoenix as the horizontal drilling program approaches.

Here are the milestones we will be tracking:

• ✅ A$5M Capital Raise Completed (Announced today)
• ✅ Expand South Prudhoe Acreage (Completed)
• 🔄 Augusta-1 Well Permitting & Rig Contract
• 🔄 Project Phoenix Horizontal Well Spud (Expected 2H 2026)
• 🔄 Namibia Gravity Survey Results
• ⬜ Augusta-1 Well Spud (Q1 2027)