6th Aug 2019 12:00
(Alliance News) - 88 Energy Ltd on Tuesday said it and Burgundy Xploration LLC have signed an exclusivity agreement with a preferred farmout bidder for the Icewine project in Alaska.
Shares in 88 Energy were down 2.8% in London shortly at midday at 0.97 pence each.
88 and Burgundy, the joint venture parties in Icewine, have granted exclusivity "to facilitate near term operational activity whilst final terms are agreed on the proposed farmout agreement".
Exclusivity runs until the end of August and a USD500,000 payment has been made by the preferred bidder, who has not been named, to fund the initial costs of the Icewine 2020 drill programme.
This USD500,000 fee is non-refundable, unless the farmout agreement falls through due to the actions or omissions of 88 Energy or Burgundy.
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