88 Energy (88E ) said it is progressing “full steam ahead” towards the spudding of the planned Merlin-1 well at 88E’s Project Peregrine which is currently on track for mid-to-late February. 

The Alaskan-focused explorer confirmed the completion of a snow road (Fig 1) and said that Rig 111 (Fig 2), which was contracted in December to drill the Merlin-1 well, is now being re-assembled as part of the commissioning process prior to handover and mobilisation to site. 

Fig. 1 Snow road construction 

[Source: 88 Energy] 

88 Energy also confirmed that operations remain on track for the scheduled February spud. "It is now full steam ahead with operations prior to the scheduled spud of the first well, Merlin-1, at Project Peregrine in six to eight weeks,” said Managing Director, Dave Wall.

Fig. 2 Rig 111 Commissioning 

[Source: 88 Energy] 

He added that, “Whilst the Peregrine drilling forms the focus, there is plenty of activity on other fronts that we look forward to providing updates on throughout the course of 2021.” 

Meanwhile, the Talitha-A well at 88E’s Project Icewine, which is to be drilled by Pantheon Resources PLC (AIM:PANR), is scheduled to spud in the first half of January 2021. Several of the prospective horizons in Talitha-A are interpreted to extend into 88E acreage (see Fig.3). 

Fig. 3 Talitha-A Location in relation to Icewine leases

[Source: 88 Energy] 

In-house analysis started on various commercialisation options for the gas condensate discovered in the Torok Formation by 88E's Charlie-1 well back in November 2020. 

88E said it is expected that this work will move to a formal feasibility stage during 2021. 

88 Energy said a farm-out of Project Icewine is ongoing, with a deal targeted in 3Q 2021. 

Shares in 88 Energy have increased by over 70% in value since the beginning of November 2020 to open 7.22% higher this morning at 0.52p following the announcement. 

Reasons to Follow 88 Energy 

Project Portfolio Across Alaska’s North Slope   

The Alaskan explorer completed its acquisition of XCD Energy, which holds a 100% Working Interest in the highly prospective Alaskan North Slope, back in August 2020. The merged entity has formed a diversified portfolio of exploration projects on Alaska’s North Slope.  

The combined company will have increased scale, market presence along with higher funding capability and trading liquidity across the ASX and London AIM exchanges.    

The three key projects include Project Icewine, Yukon leases and Project Peregrine with the assets at various stages of development, the company previously outlined this summer.   

In late 2020, 88E was also formally re-assigned the "Area A" leases at Project Icewine meaning its working interest in around 40% of the project has increased from 30% to 75%.    

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