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88 Energy releases Project Phoenix update Burgundy's operational readiness to drill has advanced; Fairweather appointed to support execution
Kay Cashman Petroleum News
On Nov. 26, 88 Energy Limited posted an ASX announcement providing a Project Phoenix update.
88 Energy holds a ~75% working interest in the conventional oil and gas project on Alaska's North Slope.
Project Phoenix is subject to a Farmout Participation Agreement, entered into with Burgundy Xploration LLC in February. Under the terms of this agreement, 88 Energy is fully carried for all costs associated with the upcoming horizontal well and extended flow test.
Supported by sophisticated energy investors, Burgundy has invested
more than US$26 million into Project Phoenix and has met all cash call requirements.
On Oct. 15 Burgundy said it had confidentially submitted a draft registration
statement on Form S-1 with the SEC relating to the proposed initial public offering (IPO) of common stock. The IPO is expected to occur after the SEC completes its review process, subject to market and other conditions.
The U.S. government shutdown in 2H 2025 extended usual SEC review timelines. Consequently, 88 Energy granted Burgundy an extension under the Participation Agreement until April 30, 2026, to complete its obligations in the farm-out agreement.
Burgundy's operational readiness to drill has advanced. Fairweather LLC has been appointed to support execution, and planning is underway to secure the Franklin Bluffs 3D seismic dataset, and Burgundy has strengthened its in-state presence through the appointment of a dedicated Alaska- based engineer.
The Burgundy team has recently undertaken meetings in Anchorage with
government agencies, key vendors and other stakeholders to advance permitting and logistical preparations.
Together, these activities place Burgundy in a strong position to meet its joint venture commitments and support the Franklin Bluffs 1H drilling and production test program in 2026.
Burgundy intends to fully fund up to US$39 million (approx. A$60 million) of Project Phoenix's total gross future work program costs in exchange for up to an additional 50% Working Interest (WI) in Project Phoenix from 88 Energy. This agreement provides a clear stage funding pathway towards a final development:
The Franklin Bluffs-1H horizontal well and extended flow test is planned for Q3 2026.
An initial pilot hole is planned to test the SMD, SFS and BFF reservoir zones, followed by wireline logging, before suspending the well.
A production test in the horizontal section to target the SMD-B reservoir, the best-developed topset sandstone within the Campanian sequence, is also planned.
The Icewine-1 well intersected a 71ft net sandstone sequence in the SMD-B with up to 14% effective porosity, while Hickory-1 recorded up to 11% porosity in the same interval.
Analysis of pilot hole and logging results is planned to guide horizontal well planning and design prior to drilling the horizontal production well and begin the extended production test.
Burgundy successful bidder Burgundy was declared the "successful bidder in the recent North Slope Fall 2025 Bid Round for a further 82,080 acres" adjacent to the Toolik River unit, with 88 Energy securing the right to participate up to 25% working interest until Oct. 1, 2026, at cost (bid bonus and rentals paid only).
Burgundy is to pay US$2,400,000 to 88 Energy for access to the Icewine 3D seismic data which covers a portion of the new leases recently secured by Burgundy, with US$150,000 due by Dec. 1, 2025, and the balance within 60 days of a successful IPO.
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