88 Energy Ltd’s (LON:88E) quarterly activities report, released today, highlighted the group's takeover of XCD Energy PLC (LON:XCD).
In the report, which is regulatory in nature, the Alaska explorer detailed the soon-to-complete takeover among the features of the period ended June 30, 2020, along with April’s end to the Charlie exploration well - which was plugged and abandoned.
READ: 88 Energy to move XCD takeover into compulsory acquisition
88 Energy is combining with Alaska exploration peer XCD to expand its footprint and prospect inventory. In early July the transaction was set to go to compulsory acquisition as a key shareholder acceptance threshold was passed.
The combination with XCD creates an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.
The explorer also noted that talks are underway regarding the Yukon acreage with nearby resource owners potentially seeking to monetise acreage and the permitting process is underway for future well drilling. Such drilling would also be subject to a farm-out.
Similarly, 88 Energy repeated that it also plans to conduct a formal farm-out process for its Project Icewine shale assets in order to fund further appraisal operations.
It separately noted that Project Icewine lease payments have been deferred with the Alaska authorities allowing extensions for lease payments due for June, July, and September extended by six months, and payments for October and November extended by 3 months.
