88 Energy Completes South Prudhoe Farm-Out, Bringing Westlawn In to Fund Augusta-1

88 Energy has completed a farm-out of its South Prudhoe project in Alaska, bringing in Westlawn Americas Offshore to help fund the Augusta-1 exploration well. The binding transaction provides up to US$10.9 million (A$15.5 million) toward the drilling and evaluation program and associated project expenditure, TradingView reported.

How the Westlawn Farm-Out Works

Westlawn will earn a 40% working interest in South Prudhoe, while 88 Energy keeps 60% ownership and operatorship of the North Slope project. Westlawn has committed US$9.2 million (A$13.1 million) toward Augusta-1 drilling and evaluation, covering about 52% of the current well budget rather than its 40% ownership share.

The arrangement covers the first US$3.6 million (A$5.1 million) of drilling expenditure, then 40% of remaining costs under the agreed budget, plus a further US$1.7 million (A$2.4 million) for non-well expenditure including geological and geophysical work, leases and long-lead equipment for a potential flow test. 88 Energy remains responsible for approximately US$8.3 million (A$11.9 million) in well costs and additional non-well and flow-test preparation commitments.

Westlawn is a Houston-based upstream investor whose entry into South Prudhoe followed technical and commercial due diligence, making this its first North Slope investment. The parties have outlined a framework to assess further North Slope opportunities together, with 88 Energy intended to retain 60% and operatorship of any jointly pursued new acreage.

"We have secured a partner that adds genuine value, having extensive Alaskan experience, deep upstream expertise, and a long-term investment approach that is highly complementary to our own ambitions on the North Slope," managing director Ashley Gilbert said.

What Augusta-1 Will Test

Augusta-1 is scheduled to spud in the first quarter of calendar 2027 and targets 133.7 million barrels of gross unrisked prospective oil resources on a 2U estimate. The prospect combines the Ivishak, Kuparuk and Brookian reservoir intervals, with the planned borehole designed to evaluate multiple independent objectives. Well location work, access planning and key contracts, including arrangements for the Nordic-Calista Rig-3 drilling rig and a dedicated Arctic camp, have also been advanced. The 52,269-acre South Prudhoe project lies south of the producing Prudhoe Bay and Kuparuk River units, near existing transport and processing infrastructure.

88 Energy's Funding and Rig Records

According to akta.pro company records, 88 Energy secured Nordic-Calista Services' Rig-3 in May 2026 to drill Augusta-1, with drilling planned for the first quarter of 2027 subject to securing funding through the farm-out process. The same records show an oversubscribed share placing completed in March 2026 at A$0.029 per share, raising A$5 million (about £2.6 million) for Augusta-1 pre-drilling activities, and an internal prospective resource assessment of 422 million barrels net entitlement after a 16.7% royalty for the South Prudhoe acreage.

Earlier Steps Toward the Farm-Out

88 Energy announced on May 6, 2026 that it had secured Nordic-Calista Services' Rig-3 for Augusta-1, with drilling planned for the first quarter of 2027, Petroleum News reported. In its quarterly activities report released in July 2026, the company detailed progress on its Alaska exploration portfolio, including securing Rig-3 and an Arctic-rated camp for the well, Proactiveinvestors reported. 88 Energy's quarterly report for the period ended September 30, 2026, released on October 26, 2026, covered progress on Augusta-1 and a farm-out process, TradingView reported.