Australia-based 88 Energy said Feb. 21 it will acquire 73 percent working interested in established conventional oil and gas production assets in Permian Basin. 88 Energy said the acquisition of 1,300 net acres is its “first move into producing oil and gas assets.” CEO Ashley Gilbert said the company’s core focus “remains exploration of our world-class Alaskan north shore acreage.”
Purchase price for the assets, collectively known as Project Longhorn, was $9.7 million ($7.2 million cash). Current gross production is 300 boed (70 percent oil), but certain initiatives are intended to double output rates by late 2022. The seller, Lonestar I, will retain 24 percent net working interest.