- Following a series of delays, 88 Energy (88E) has begun drilling the Merlin-1 well at its Project Peregrine on the North Slope of Alaska
- In January, the U.S. Department of the Interior placed a “suspension of authority” on bureaus and offices in relation to the granting of permits
- The Executive Order led to the shut down and restart of operations at Peregrine, while the company sought clarification and waited to receive a permit to drill
- While the rig is now turning at Merlin-1, 88 Energy has revised up its share of the cost for the well from US$1.4 million (A$1.81 million) to US$4 million (A$5.17 million)
- The company expects results from the drilling within four weeks but has also flagged the delays may mean the Harrier-1 well won’t be drilled this season
- Shares have been up 6.25 per cent
Following a series of delays, 88 Energy (88E) has begun drilling the Merlin-1 well at its Project Peregrine on the North Slope of Alaska.
In January, the U.S. Department of the Interior placed a “suspension of authority” on bureaus and offices in relation to the granting of permits.
The Executive Order led to the shut down and restart of operations, while the company sought clarification and waited to receive a permit to drill. Additional delays were caused by cold weather.
While the rig is now turning at Merlin-1, 88 Energy has revised up its share of the cost for the well from US$1.4 million (A$1.81 million) to US$4 million (A$5.17 million).
88 Energy has a 100 per cent working interest in Merlin-1, but, under a farm-in agreement, the company will be carried for the first US$10 million (A$12.93 million), and thereafter its interest will reduce to 50 per cent.
The well will be drilled to a depth of up to 6000 metres, and the company expects the receive results within four weeks.
Additionally, given the delays, the company has said it is now unlikely drilling of the Harrier-1 well, located downtrend from Merlin-1, will begin this season.
Shares have been up 6.25 per cent at 0.9 at 10:15 am AEDT.