88 Energy rises on progress at Alaska's North Slope

88 Energy updated the market on its operations on the North Slope of Alaska on Friday, reporting that rig commissioning was now complete, with mobilisation having started for the drilling of Merlin-1.

The AIM-traded firm said rig 111 was on its way to the drilling location, with spud scheduled for the first week of March.

Drilling was expected to take three to four weeks, including logging.

Depending on the results of the logging, 88 Energy said the well would then be flow tested.

The board also said early results from the nearby Talitha-A well were “encouraging”, with potential there for extensions into 88 Energy leases.

“Commencement of drilling at Merlin-1 is now just around the corner, targeting the extension of the highly successful Nanushuk play,” said managing director Dave Wall.

“Success would underpin a company making development project for our shareholders, with the proven resource at the recently acquired at Umiat Oil Field adding substantial value.”

At 0845 GMT, shares in 88 Energy were up 4.9% at 0.49p.