88 Energy reports positive moves on Merlin-1 well approval

88 Energy updated the market on its operations in the NPR-A region of the North Slope of Alaska on Wednesday, confirming that the Bureau of Land Management’s Alaska branch was reviewing its permit to drill for the upcoming Merlin-1 well.

The AIM-traded firm had submitted for the permit on 12 January, and said the bureau had indicated it was now “very close” to being complete, with minor outstanding items.

It said it expected the bureau to be complete by 28 January.

The company also said it had received confirmation from the Bureau of Land Management that the Assistant Secretary for Land and Minerals intended to sign the permit, subject to satisfactory completion of the standard review process.

There were no material costs related to the permit approval, the board said, with field operations set to restart in the next few days after a six-day delay

“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 and early March,” said managing director Dave Wall.

At 1620 GMT, shares in 88 Energy were up 22.4% at 0.51p.