THE ACQUISITION OF PROJECT LONGHORN
The acquisition of Project Longhorn represents 88 Energy’s first move into producing oil and gas assets and is in line with the Company’s strategy to build a successful exploration and production company.
This step has been undertaken in a measured fashion via the purchase of a non-operated working interest with a single basin focus. Project Longhorn contains well understood geology with low technical risk and provides near-term upside via low-cost field development opportunities.
Non-operator with ~73% ownership interest1
- Appox. 1,300 net acres in West Andrews and Ector Countries
- Current production of 300 BOE per day gross from 32 producing wells
- Seven low-cost work-overs planned in 2022, target (2P) doubling of current output by end of CY2022
- Target further eleven work-overs or new drills anticipated to increase production to circa 1,300 BOE per day (2P) at program completion
- Strong results from recent wells
The oil and gas production assets, collectively known as Project Longhorn, are located in the attractive Permian Basin and contain independently certified net 2P reserves of 2.1MMBOE.
"Delivering immediate output and near-term production drilling upside”
- Diversifying Portfolio with Production
- Low-cost Entry with NET 2P Reserves of 2.1 MMBOE
- Attractive Location in Texas, USA
- Solid PDP Production with Low-Risk Upside
|LONGHORN RESERVES||GROSS1||NET ENTITLEMENT1|
Note – 1. Please refer to the ASX release dated 18 February 2022 for full details with respect to the independent Reserves Estimates, associated risking and applicable Cautionary Statement on page 2.