88 Energy Limited ("88 Energy" or the "Company") (ASX, AIM: 88E) today announces that it proposes to raise up to A$5.03 million (approximately 锟�2.62 million) (before expenses), within the Company's existing placement capacity, pursuant to a placing (the "Placing") of new ordinary shares of no par value in the Company (the "Placing Shares") at a price per Placing Share of A$0.029 (approximately equivalent to 锟�0.01508) (the "Placing Price") per share. The shares issued pursuant to the Placing will be issued under the Company's available placement capacity pursuant to ASX Listing Rule 7.1 and are not subject to shareholder approval.
In the case of Placing Shares issued in the Australian Placing (as defined below), it is the Company's intention that investors will be granted options ("Options") (exercisable at A$0.0435 per new Ordinary Share) and, in the case of Placing Shares issued in the UK Placing (as defined below), investors will be granted warrants ("Warrants") (exercisable at 锟�0.02262 per new Ordinary Share). The grant of the Options and Warrants is subject to the Company obtaining shareholder approval, which the Company intends to seek at the next general meeting of the Company, which is expected to take place in May 2026.
The Placing Price is equivalent to a discount of 2.7% to the closing price of the Company's shares on AIM on 24 March 2026, being the latest practicable date prior to this announcement. The Company also announces that its shares have been placed in a trading halt on the ASX pending the release of an announcement in relation to the completion of the Placing, and will continue to trade on AIM during this period.
The Warrants will be granted to subscribers for Placing Shares in the UK Placing (as defined below) on the basis of one Warrant for every two Placing Shares subscribed for (with any fractional entitlements being rounded down to the nearest whole number of Warrants). Each Warrant will entitle the holder to subscribe for one Ordinary Share at a price of 锟�0.02262 per Ordinary Share at any time before the third anniversary of the grant of such Warrants.
The Warrants will be unlisted but are transferable independently of the Placing Shares. Further terms and conditions of the Warrants are summarised below (see 'Principal Terms of the Warrants'). Investors should note that participants in the Australian Placing (as defined below) will be granted Options over Ordinary Shares on the same basis of one Option for every two Placing Shares subscribed for. The Options will be granted on materially the same terms as the Warrants, save that they will have an exercise price in Australian Dollars which will be approximately equivalent to the exercise price of the Warrants.
The Placing is being conducted through a bookbuilding process (the "Bookbuild"), which is being managed by Cavendish Capital Markets Limited ("Cavendish") and H&P Advisory Limited, trading as Hannam & Partners ("H&P") in the UK (the "UK Placing") and Euroz Hartleys Ltd ("Euroz Hartleys") in Australia (the "Australian Placing").
The Bookbuild will open with immediate effect following release of this announcement. The number of Placing Shares to be issued in the UK (the "UK Placing Shares"), will be agreed by Cavendish, H&P, Euroz Hartleys and the Company at the close of the Bookbuild. The timing of the closing of the Bookbuild, the amount to be raised and allocations are at the discretion of Cavendish, H&P, Euroz Hartleys and the Company. Details of the number of Placing Shares to be issued will be announced as soon as practicable after the close of the Bookbuild. The Company intends to rely on the Company's placement capacity pursuant to ASX Listing Rules 7.1 to issue up to a maximum of 173,602,563 new ordinary shares (equivalent to maximum gross proceeds of up to A$5.03 million (approximately 锟�2.62 million), and shareholder approval will not be required for the Placing, but will be required for the grant of the Options and Warrants.
Current trading and activity
The Company released its financial results for the year ending 31 December 2025 ("FY2025"), including the events occurring after the period end, on 23 March 2026, and published its fourth quarter report for the period ending 31 December 2025 on 30 January 2026. As at 28 February 2026 the Company had cash resources of A$5.9 million.
NORTH SLOPE ALASKA PORTFOLIO
Newly acquired acreage expansion
In November 2025, through its wholly owned subsidiary Captivate Energy Alaska, Inc., 88 Energy secured fourteen additional leases as part of the North Slope Areawide 2025W Oil and Gas Lease Sale. These newly acquired leases expand 88 Energy's strategic landholding by 34,560 acres across two high-potential areas to the East (Kad River East - seven leases) and West (South Prudhoe - seven leases) of the Trans Alaskan Pipeline System (TAPS), complemented by the existing fourteen leases formally known as Project Leonis.
Securing the strategically located North Slope leases is a clear demonstration of the Company's data-driven, infrastructure-focused strategy in action. The new South Prudhoe acreage expands 88 Energy's footprint across proven fairways, positions itself beside existing pipelines and facilities and introduces a suite of low-risk Ivishak prospects in South Prudhoe, supported by modern 3D and strong well control.
With 3D seismic licensing and interpretation underway in 2026, there is a clear pathway to near-term value catalysts, including a potential multi-zone exploration well (Augusta-1) targeting the newly defined Ivishak and Kuparuk prospectivity. Augusta-1 is positioned adjacent to existing oil discoveries and producing fields and is designed to test the high-quality, stacked Ivishak and Kuparuk reservoirs. The Company's near-term priority is to convert these high-quality subsurface opportunities into commercial outcomes, while maintaining capital discipline and a sharp eye on monetisation routes via tie-in to nearby pipeline infrastructure.
The Kad River East leases introduce longer-term upside across an underexplored position to the east of TAPS, further adding to 88 Energy's growth pipeline and regional optionality. The new leases covering 17,920 acres provide a new entry into an exploration frontier area where historical wells and modern seismic data indicate a multi-reservoir petroleum system. Soon to be released Kad River 3D seismic data, together with historical well logs are expected to materially improve subsurface imaging and target definition. Historical well data indicates an active petroleum system, with hydrocarbon shows reported across multiple intervals. Planned 3D work and integrated interpretation will support the identification and maturation of drill ready targets over time.
South Prudhoe
The expanded South Prudhoe leases cover 52,269 acres and positions 88 Energy within one of the most prolific hydrocarbon fairways on the North Slope, immediately south of the Prudhoe Bay Unit and Kuparuk River Unit. The new acreage secured in November 2025 complements the existing leases formerly known as Project Leonis to create a dual-hub development concept with a strong strategic position across a corridor of proven reservoirs complemented by ready access to existing infrastructure on the North Slope.
The North-West Hub offers multiple low-moderate risk, high-potential prospects within the conventional Ivishak reservoir as well as the Kuparuk reservoirs and additional Brookian upside under review. The Ivishak is the main producing unit at Prudhoe Bay (the largest onshore oilfield in the United States).
The Ivishak is a premier reservior on all measures, supported by modern 3D seismic with strong well control. It is characterised by high quality clean sandstone across the prospective area, with predicted 20% porosity and 50 to 100 mD permeability supported by offset well and core data.
The South-East Hub contains significant multi-zone upside in the Kuparuk and shallower Schrader Bluff reservoirs (Fourteen leases formally known as Project Leonis plus one additional lease secured through the November 2025 bid round). These horizons, already defined on modern 2D and 3D seismic datasets and supported by regional well control including oil shows, will be further evaluated following the Schrader Bluff 3D seismic licensing and reprocessing that commenced in Q1 2026.
Augusta-1 Exploration Well
Permitting and planning activities have commenced for the high-impact, multi-zone Augusta-1 exploration well, located within the North-West Hub Lease Area of the South Prudhoe Project.
88 Energy's Augusta Prospect represents a high-impact, multi-zone opportunity within the North-West Lease Area of the South Prudhoe Project. The planned Augusta-1 exploration well is set to be drilled adjacent to existing oil discoveries and producing fields and is designed to test the high-quality stacked Ivishak and Kuparuk reservoirs. These target reservoirs have been estimated to host a combined 2U gross unrisked Prospective Resource of 64 MMbbls.
Augusta is the highest-priority target within the Company's portfolio because it represents a material, relatively low-risk and near-term value creation opportunity. Location selection and well planning are supported by well-defined structural traps and seismic amplitude anomalies consistent with proven nearby reservoirs.
Advanced discussions are underway with drill rig providers, with the Company expecting to secure a drill rig contract in Q2 2026, ahead of the planned winter drilling window in Q1 CY2027.
Drilling the Augusta-1 well remains subject to securing funding, including completion of the current farm-out process, which is targeted for Q3 CY2026. Multiple parties are currently evaluating the opportunity following launch of the process in late-February 2026.
South Prudhoe Advancement Schedule: Ongoing workstreams and key next steps include:
锟� Brookian upside assessment: Recently acquired Schrader Bluff 3D seismic data will support full evaluation and resource definition of further prospectivity within the Brookian sequence.
锟� Secure key long lead items and execute rig contract to ensure project schedule remains intact ahead of the planned Q1 2027 spud.
锟� Advanced Augusta-1 planning: Continued detailed well design, engineering and operational planning.
锟� Farm-out and strategic partnering: Targeting funding support for drilling and appraisal activities while retaining meaningful exposure to a potentially material development opportunity.
Project Phoenix
Project Phoenix is an advanced conventional project on the North Slope of Alaska, targeting multi-reservior production potential identified during the drilling and flow testing of Hickory-1 in 2023/2024. Key reservior intervals include the Shelf Margin Deltaic (SMD), Slope Fan System (SFS), and Basin Floor Fan (BFF).
Successful flow testing at Hickory 1 confirmed light oil flow from the two-tested target intervals, being the SMD-B and Upper SFS, and provided the technical foundation for progression to a horizontal well and extended production test.
Project Phoenix includes a net 2C Contingent Resource of 239 MMBOE to 88 Energy,. The project benefits from strong infrastructure proximity, including access to the Dalton Highway, Deadhorse services hub and TAPS
Farmout Agreement, JV Partner Update & 2026 Production Test Well
Burgundy funding status
Burgundy continues to progress its funding program for the Franklin Bluffs-1H horizontal well and extended production test. Supported by sophisticated energy investors, Burgundy has invested more than US$26 million into Project Phoenix and has met all cash call requirements since execution of the agreement in February 2025.
Burgundy reaffirmed its commitment to the project by settling outstanding 2024 cash calls during the March 2025 quarter and funding 100% of lease payments in 2025, which form part of its carried expenditure under the farm-out agreement.
On 15 October 2025, Burgundy announced it had submitted a draft registration statement on Form S-1 with the US Securities and Exchange Commission (the SEC) relating to the proposed initial public offering (IPO) of common stock. The timing of the IPO remains subject to SEC review, market conditions and other customary factors. A prolonged United States government shutdown during the second half of 2025 extended usual SEC review timelines. As a result, 88 Energy granted Burgundy an extension under the Participation Agreement to 30 April 2026 to complete its funding obligations.
Burgundy agreement for historical Icewine 3D data
In November 2025, Burgundy agreed to pay US$2.4 million to 88 Energy for access to the Icewine 3D seismic data, acquired solely by 88 Energy in 2018. An initial payment of US$150,000 was received on 1 December 2025, with the balance payable within 60 days of a successful IPO.
Burgundy secured additional leases adjacent to Project Phoenix
In November 2025, Burgundy was declared the successful bidder in the North Slope Fall 2025 Bid Round for a further 82,080 gross acres adjacent to the Toolik River Unit, with 88E securing the right to participate up to 25% working interest until 1 October 2026 at cost (bid bonus and rentals paid only).
Franklin Bluffs-1H Production test well
Planning, permitting and operational readiness commenced during 2025 for the Franklin Bluffs-1H horizontal well and extended production test, which is currently scheduled to spud in H2 CY2026, subject to approvals and partner execution.
o An initial pilot hole is planned to test the SMD, SFS and BFF reservoir zones, followed by wireline logging
o Analysis of pilot hole and logging results to guide horizontal well planning and design, prior to drilling the horizontal production well and commence the extended production test. Initial hypothesis is to target the SMD-B reservoir, the best-developed topset sandstone within the Campanian sequence.
o Icewine-1 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.
o Operational readiness is advancing, with Fairweather LLC appointed for execution support and key staffing and operational enhancements underway, including the appointment of an Alaska-based representative.
Namibia PEL 93, Owambo Basin
88 Energy holds a 20% non-operated interest in PEL 93 in the Owambo Basin, onshore Namibia, under a three-stage farm-in arrangement to earn up to a total of 45% working interest. The basin remains under explored, with growing industry attention following recent regional discoveries.
During 2025, the PEL 93 joint venture secured a 12-month licence extension to 2 October 2026 and agreed a Stage 1A work program, including airborne gravity, magnetic and radiometric surveys, prospective resource reporting and drilling location selection. The airborne geophysical survey is planned for Q1 CY2026 to acquire high resolution magnetic and gravity data, enabling accurate mapping of basin architecture and key structural features. Survey results will be integrated with existing datasets to refine prospect interpretations and support the identification of drilling targets.
Encouraging Neighbouring Results
On 3 December 2025, ReconAfrica announced positive results from the Kavango West 1X well on PEL 73, located within the same Damara Fold Belt play fairway as PEL 93. Key developments included:
o Approximately 400 metres of gross hydrocarbon bearing section identified in the Otavi carbonate sequence.
o 64 metres of net hydrocarbon pay confirmed by wireline logs and supported by mud log anomalies.
o Additional hydrocarbon shows within deeper fractured limestone intervals.
o A production testing program planned for Q1 2026 to evaluate reservoir deliverability.
ReconAfrica's evaluation and forward testing plans underscore the potential of the Otavi carbonate reservoir system, a key play type across the broader Damara Fold Belt, including in PEL 93.
Rationale for the Placing and Use of Proceeds
The net proceeds of the Placing, together with the Company's existing cash reserves, will strengthen the Company's balance sheet and will provide the Company with sufficient capital to fund:
o Advanced planning for the Augusta-1 well, including long-lead items and permitting;
o Rig contracting; and
o Bid bonus and lease rental payments for newly secured leases for South Prudhoe and Kad River East .
Following completion of the proposed Placing, the Company will have sufficient cash to fund its ongoing working capital requirements and general and administrative overheads for at least 12 months.
Details of the Placing
The UK Placing is subject to the terms and conditions set out in the Appendix (which forms part of this announcement, such announcement and the Appendix together, the "Announcement"). The Australian Placing will be conducted separately by Euroz Hartleys on separate terms and conditions, but at an equivalent Australian Dollar price per Placing Share as the UK Placing.
Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission to trading on AIM ("Admission") will become effective and that dealings in the Placing Shares will commence on AIM at 8.00 a.m. on 7 April 2026.
The Placing Shares will be issued and credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of those Ordinary Shares and will otherwise rank on Admission pari passu in all respects with each other and with the existing ordinary shares in the Company.
The UK Placing is conditional upon, inter alia, Admission taking place by no later than 8.00 a.m. on 7 April 2026 (or such later date as Cavendish and H&P may agree in writing with the Company, being not later than 8.00 a.m. on 17 April 2026) and the Placing Agreement entered into between the Company, Cavendish and H&P not being terminated prior to Admission. If any of the conditions of the Placing Agreement are not satisfied the Placing Shares will not be issued and Admission will not take place.
The Company, in conjunction with Cavendish, H&P and Euroz Hartleys, reserves the right to accept over-subscriptions for Placing Shares and to determine the maximum number of Placing Shares that will be issued in the Placing. However, the Company intends to rely on the Company's placement capacity pursuant to ASX Listing Rules 7.1 to issue up to a maximum of 173,602,563 new Ordinary Shares (equivalent to maximum gross proceeds of up to A$5.03 million (approximately 锟�2.62 million), such that shareholder approval will not be required for the Placing (although it will be required for the grant of the Options and the Warrants)
Neither the Placing Shares, the Options or the Warrants have been made available to the public and they have not been offered or sold in any jurisdiction where it would be unlawful to do so.
Principal Terms of the Warrants
The Warrants will be constituted pursuant to a deed poll to be executed by the Company (the "Warrant Instrument"), subject to, and following, the necessary approval of the grant of the Warrants being granted by the Company's shareholders in a forthcoming general meeting. Under the terms of the UK Placing, grant of the Warrants will be conditional inter alia upon Admission of the Placing Shares and the Company obtaining shareholder approval, which the Company intends to seek at the next general meeting of the Company, which is expected to take place in May 2026. However, there is no guarantee that such approval will be granted, and if such approval is not granted then this will not affect the issue and Admission of the Placing Shares. The principal terms and conditions of the Warrants will be as follows:
1. each Warrant will entitle the holder to subscribe for one Ordinary Share at a price of 锟�0.02262 per Ordinary Share at any time before the third anniversary of the date of grant of the Warrants. To the extent not exercised before such date, the Warrants will lapse;
2. the Warrants will be unlisted and will not be admitted to trading on any exchange or secondary market, but will be freely transferable, subject to any restrictions under the ASX Listing Rules or the AIM Rules for Companies (the "AIM Rules") or MAR. Accordingly, a Warrantholder will not be able to sell them other than in private off-market transactions. Such a transfer may be effected by the Warrantholder executing a transfer form, which can be obtained from the Company, and delivering it to the Company together with the holding statement in respect of the Warrants being transferred. The Registrars of the Company shall maintain a register of Warrantholders;
3. the Warrants may only be held in certificated form and may not be held electronically in CREST. Upon exercise of the Warrants, the resulting Ordinary Shares will be issued to the person exercising the Warrant in certificated form or electronically in CREST;
4. each Warrantholder will be entitled to a holding statement evidencing their holding of such Warrants;
5. Warrants may be exercised, in minimum tranches of 1,000,000 Warrants (or, if less than this figure is held by the Warrantholder, all remaining Warrants held by that Warrantholder) by the Warrantholder submitting an exercise notice to the Company together with a remittance for the aggregate exercise price. Thereafter, the relevant Ordinary Shares will be allotted, and a certificate in respect of such Ordinary Shares shall be sent to the relevant Warrantholder, within 15 Business Days. Such Ordinary Shares shall be credited as fully paid and will rank pari passu in all respects with the Ordinary Shares then in issue, save that they will not rank for any dividends or other distributions declared in respect of a record date falling on or before the date that such Ordinary Shares were allotted. Application will be made for such Ordinary Shares to be admitted to trading on AIM, the ASX, and/or any other stock exchange upon which the Company's Ordinary Shares are admitted to trading;
6. the number of Warrants held by each holder, and the exercise price of such Warrants, will be varied in such manner as the auditors of the Company may determine, subject to compliance with the Corporations Act 2001 (Cth) (the "Corporations Act"), the ASX Listing Rules and the AIM Rules, in the event of a sub-division or consolidation of the Ordinary Shares or reduction of share capital of the Company. Warrantholders will be notified of any such changes;
7. a Warrant does not entitle the holder to participate in the surplus profits or assets of the Company upon a winding up of the Company but in the event of a winding up of the Company, the Company shall give notice to each Warrantholder who shall be entitled to exercise their Warrants to the extent that such Warrants have not lapsed or been exercised prior to the record date of such offer in order that they may then participate (as a shareholder) in the surplus profits or assets of the Company;
8. if at any time an offer or invitation is made by the Company to the holders of the Ordinary Shares for the purchase by the Company of any of its Ordinary Shares, the Company shall simultaneously give notice thereof to each Warrantholder who shall be entitled, at any time whilst such offer or invitation is open for acceptance, to exercise its rights to subscribe for Ordinary Shares under the Warrants so as to take effect, in so far as is reasonably practicable, as if it had exercised its rights immediately prior to the record date of such offer or invitation;
9. in the event of a proposed takeover of the Company, the Company shall give notice to each Warrantholder who shall be entitled to exercise their Warrants to the extent that such Warrants have not lapsed or been exercised prior to the record date of such offer, the Company shall use reasonable endeavours to procure that a similar offer is made to Warrantholders as if all outstanding Warrants had been exercised immediately before the record date for that offer, and to the extent that any Warrants have not been exercised within one month after such offer shall have become or been declared unconditional in all respects they shall lapse;
10. save in the case of a modification of a purely formal, minor or technical nature, the terms and conditions of the Warrants may only be modified with the prior sanction of a Special Resolution of Warrantholders, being a resolution passed at a meeting of the Warrantholders duly convened and held and carried by a majority consisting of not less than 75 per cent of the votes cast upon a show of hands or, if a poll is duly demanded, by a majority consisting of not less than 75 per cent of the votes cast on a poll; and
11. the Warrant Instrument is governed by the law of Western Australia.
A copy of the proposed Warrant Instrument, which sets out the full terms and conditions of the Warrants, will be made available to each subscriber for Warrants in the UK Placing.
In addition to the fees agreed to be paid to each of the Brokers in connection with the UK Placing, pursuant to the terms of the Placing Agreement, the Company will also issue to each of the Brokers, within 10 Business Days of the approval of the Company's shareholders to such issue, one Warrant to acquire a fully paid Ordinary Share for every six UK Placing Shares issued pursuant to the UK Placing (with fractional entitlements rounded down and ignored) (the "Broker Warrants"). The Broker Warrants will have an exercise price of 锟�0.02262 and expire three years from their date of issue. Each of the Brokers shall pay the Company an amount equal to $0.00001 per Warrant as consideration for the grant of such Warrants. The cost will be payable prior to issue.
This Announcement should be read in its entirety. In particular, your attention is drawn to the "Important Notices" section of this Announcement, to the detailed terms and conditions of the UK Placing and further information relating to the Bookbuild described in the Appendix to this Announcement (which forms part of this Announcement).
By choosing to participate in the UK Placing and by making an oral and legally binding offer to acquire Placing Shares, investors will be deemed to have read and understood this Announcement in its entirety (including the Appendix), and to be making such offer on the terms and subject to the conditions of the UK Placing contained herein, and to be providing the representations, warranties and acknowledgements contained in the Appendix.
In this Announcement, references to "pounds sterling", "锟�", "pence" and "p" are to the lawful currency of the United Kingdom and references to "Australian dollars", "A$" and "A cents" are to the lawful currency of Australia. Unless otherwise stated, the basis of translation of pounds sterling into Australian dollars is A$1.00/锟�0.52.