PriceSensitive

88 Energy (ASX:88E) poised to restart operations at Merlin-1

Energy
ASX:88E      MCAP $86.67M
27 January 2021 13:15 (AEST)

88 Energy (88E) is gearing up to recommence drilling activity at the Merlin-1 well in Alaska following an update from the Bureau of Land Management (BLM).

Earlier this month, the energy stock submitted an application to drill at Merlin-1, expecting to receive the green light within 30 days.

However, a 60-day suspension instated by the US Department of the Interior on Monday threw the application’s status into disarray.

Nevertheless, 88 Energy remained optimistic the suspension would have little to no impact on its permit application because of the advanced nature of its operations. In more good news today, it seems the company was on the money.

Promisingly, BLM has advised it is currently reviewing 88E’s application document and has “indicated that it is now very close to being completed with only minor outstanding items”.

The company has also received confirmation from BLM that the Assistant Secretary for Land and Minerals intends to sign the permit, subject to the process review by the BLM.

This means field operations at Merlin-1 could recommence in the next few days.

“We are fortunate to have strong local support in Alaska and, as a result, will soon be back on track for the drilling of Merlin-1, commencing in late February / early March 2021,” Managing Director Dave Well said.

Following the update, 88E shares are trading steady at 1 cent at 1:23 pm AEDT.

Related News