88 Energy and Red Emperor soar on acquiring Alaskan prospect

Explorers 88 Energy, Red Emperor and Otto Energy have executed a binding agreement to acquire the majority working interest in four leases located immediately adjacent to 88E's Horseshoe #1 well.

In exchange for acquiring the properties from Great Bear Petroleum, the consortium has agreed to provide a performance bond to the State of Alaska of $3m by 31 July and drill an exploration well in the Western Blocks by 31 May 2019. The consortium aims to drill in early 2019, with preparations for drilling already underway.

AIM- and ASX-listed 88 Energy, which will manage the drilling process, said it sees the Western Blocks purchase transaction as a "significant opportunity" for shareholders to gain exposure to "one of the most prospective oil plays available globally", complementing its existing conventional portfolio on Alaska's North Slope.

Dave Wall, 88 Energy's managing director, said, "We would like to thank Otto's technical team for generating the prospect and Great Bear for moving quickly to reach an agreement."

Wall said 88's Alaskan operations team will be working closely with Great Bear and the regulatory agencies in Alaska to ensure that the well is permitted and drilled on time in a safe and environmentally conscious manner.

As of 0930 BST, 88 Energy shares had expanded 17.74% to 1.82p, while Red Emperor has soared 172% to 2.5p.