8th Sep 2023 10:54
(Alliance News) - 88 Energy Ltd on Friday said it reduced its interim loss in part from reduced exploration impairments, and it is optimistic about scheduled tests in Alaska.
The Subiaco, Western Australia-based oil and gas company, which has onshore operations in Alaska and Texas, made an AUD11.7 million, about GBP6.0 million, pretax loss in the first half of 2023, compared with an AUD67.3 million loss the year before.
88 Energy incurred an exploration and evaluation impairment of AUD8.9 million, down from AUD67.6 million, while administrative expenses decreased 7.6% to AUD1.4 million. However, share of profit from equity accounted investment fell 78% to AUD772,336 from AUD3.4 million.
Cash and equivalents at June 30 were AUD7.3 million, down from AUD10.5 million at the same time in 2022. 88 said this was mainly due to funds being directed towards the Hickory-1 well at Project Phoenix in Alaska, which spudded and drilled to 10,650 feet in early March.
88 said programme planning at Hickory-1 is progressing on schedule, and expects post-well testing to be fully completed in the current quarter.
It added that multiple zones in Alaska are scheduled to be tested, and that it expects all of them to flow based on reservoir characteristics.
US President Joe Biden's administration on Wednesday announced it is banning new oil and gas drilling over a vast region of Alaska.
The prohibition covers 10.6 million acres, or 40%, of the National Petroleum Reserve in Alaska, an ecologically important region for grizzly and polar bears, caribou and hundreds of thousands of migratory birds.
88 Energy made no mention of the US decision in its results announcement.
Shares in 88 Energy were down 3.1% at 0.36 pence in London on Friday morning.
By Emma Curzon, Alliance News reporter
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