(Alliance News) - 88 Energy Ltd on Monday said Merlin-1 production hole drilling is to commence imminently at its project Peregrine in the NPR-A region of the North Slope of Alaska.
Shares in the Alaska-focused oil producer surged 35% at 1.50 pence each in London on Monday morning.
88 Energy reported that the Merlin-1 surface hole was successfully drilled to 1,512 feet as planned.
Surface casing has now been cemented and the blow out preventer system tested. A formation integrity test was successfully undertaken and the rig is now drilling in the production hole where the primary Nanushuk targets are located. The planned total depth is 6,000ft.
88 Energy inked a share subscription agreement with oil & gas well maintenance firm ELKO International LLC, who is also one of the major contractors for the current drilling operations.
Under the agreement ELKO has subscribed 360.0 million new shares at USD0.018, raising gross proceeds of USD6.5 million.
88 Energy Managing Director Dave Wall said that the endorsement of the project by ELKO is encouraging and the funds will be put towards cost overruns.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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88 Energy (88E)