22nd Jan 2021 10:35
(Alliance News) - 88 Energy Ltd's shares plunged on Friday as it noted a recently announced 60-day suspension of authority for US Department Bureaus and Offices relating to the issuance of new drilling permits on Federal land.
Shares in the Alaska-focused oil producer were 24% lower at 0.46 pence on Friday in London.
The document from the US Department of the Interior said that several actions normally taken by Department Bureaus and Offices would be suspended.
This included the action: "To issue any onshore or offshore fossil fuel authorization, including but not limited to a lease, amendment to a lease, affirmative extension of a lease, contract, or other agreement, or permit to drill".
On Tuesday last week, 88 Energy submitted a permit to drill application, with approval initially expected within the standard 30-day timeframe, meaning on or about February 12, 2021.
The company said it is in close touch with the Bureau of Land Management as it is determined how the suspension will be interpreted and implemented. The Bureau has indicated that it will continue to process the permit to drill application.
In addition, pending clarification over the suspension, 88 Energy's shares on the Australian Securities Exchange have been placed in a trading halt.
"At this time it is uncertain whether this will have an impact on operations. We anticipate being able to get clarity on the situation within the next week. We have a strong case to be granted the permit given the many permits that have already been granted as well as our considerable, and ongoing, operations in the field," said Managing Director Dave Wall.
By Dayo Laniyan; [email protected]
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