- 88 Energy (88E) has entered a trading halt regarding an upcoming capital raise
- Prior to entering the halt, the company announced receiving a permit to drill the Merlin-2 well in Alaska
- A rig has been commissioned and is mobilising to the site to target three highly prospective targets encountered in the Merli-1 well
- The company says drilling will likely take three to four weeks and the well is expected to spud early next month
- 88 Energy expects to remain in the trading halt until February 14 and shares last traded at 5 cents on February 9
88 Energy (88E) has entered a trading halt regarding a capital raise.
The company expects the trading halt will be in place until no later than market pre-open on Monday, February 14, when it expects to release the capital raise details.
88 Energy also announced today that it has received a permit from the Bureau of Land Management (BLM) to drill the Merlin-2 appraisal well.
The Merlin-2 appraisal well is part of the Peregrine Project in the North Slope of Alaska.
The energy stock plans to drill the well to a depth of 8000 feet and is targeting 652 million barrels of oil in three highly prospective targets encountered in the Merlin-1 well last year.
88 Energy has commissioned the Arctic Fox rig which will begin mobilising to the well. The company has also completed pioneering the single lane snow road to the Merlin-2 location.
The well is expected to spud early next month with drilling expected to take about three to four weeks, including wireline logging.
“We look forward with excitement to the drilling of the highly anticipated Merlin-2 appraisal well,” Managing Director Ashley Gilbert said.
It’s unclear whether the upcoming capital raise will support drilling activities.
Company shares last traded at 5 cents on February 9.