Australia

88 Energy takeover target XCD upgrades resource estimates for Project Peregrine

88 Energy Ltd (LON:88E) (ASX:88E) takeover target XCD Energy Limited (ASX:XCD) has released a resource upgrade for its Project Peregrine asset, located on Alaskas North Slope.

Consultant ERC Equipoise (ERCE) outlined 1.63bn barrels of mean prospective resources across three targets – Merlin, Harrier, and Harrier Deep.

“At a prospect level, both the COS and volumes have increased as an exploration well is more likely to encounter hydrocarbons, but also more likely to encounter multiple reservoir layers, and as a result, the total success case numbers have increased,” XCD said in a statement.

READ: 88 Energy agrees recommended takeover of XCD Energy


XCD also told investors that holders of an overriding royalty interest (ORRI) for Project Peregrine have agreed to reduce the royalty rate to 1.3% whilst the explorer expanded its area of mutual interest.

88 Energy and XCD earlier this month agreed a recommended deal for the former to acquire the latter in an all-paper-based transaction. XCD shareholders will receive 2.4 88 Energy shares.

88 Energy said the combinatRead More – Source