LONDON (Alliance News) - 88 Energy Ltd has completed all necessary work to plug and abandon the Winx-1 exploration well in the Western Blocks of the North Slope of Alaska, it was announced on Tuesday.
Red Emperor Resources NL issued the announcement and said the rig and crew have left the Winx-1 site.
Shares in 88 Energy were down 6.5% at 0.80 pence on Tuesday while shares in Red Emperor were up 5.9% at 0.70p.
The goal of drilling in the Western Blocks is to target Nanushuk, one of the largest conventional oil fields to have been discovered in the US for over 30 years and containing more than a billion barrels of oil, said Red Emperor.
Red Emperor is proceeding with its plan to further evaluate Nanushuk's potential at the Western Blocks using data from the drilling of Winx-1, as well as from a possible reprocessing of 3D seismic data that already exists from 2004.
Red Emperor said there are a number of working theories to be assessed "in the coming months", including the possibility of a better developed sands updip closer to successful Nanushuk wells drilled by third parties.
At present, Red Emperor considers itself to be "financially well placed" to continue with its evaluation plans with its cash balance of around AUD4.6 million, or around GBP2.5 million, excluding its USD1.1 million share of a performance bond refund.
88 Energy (88E)