19th Oct 2020 10:29
(Alliance News) -Â 88 Energy Ltd on Monday said its Project Icewine working interest has increased and it is making "good progress" on the Project Peregrine farm-out.
The Australian exploration & production company said its working interest on around 40% of the gross Project Icewine lease position has increased to 75% from 30% in the area surrounding the recently successful Charlie-1 well, on the North Slope of Alaska, following the re-assignment of leases in "Area A".
"Work related to an independent resource estimate in this area is progressing and is expected to conclude in the coming weeks. Both the increase in acreage and the independent resource estimate are expected to facilitate ongoing farm-out discussions at Project Icewine," said 88.
Meanwhile, the company reported "good progress" on the Project Peregrine farm-out, which has progressed through technical due diligence for multiple parties and several initial non-binding offers have been received. While "encouraging" for the scheduled close of a deal prior to year-end, there can be no guarantee one will be completed in this timeframe, 88 cautioned.
Permitting, planning and contracting works associated with the drilling of the Merlin and Harrier prospects at Project Peregrine remain on schedule for spud of the first well in the first quarter of 2021, it added.
"We are very pleased with how the company is currently positioned and look forward to closing out several material items in the near-term," said Dave Wall, managing director of 88.
Shares in 88 were up 8.6% at 0.36 pence in London on Monday.
By Lucy Heming;Â [email protected]
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