(Alliance News) - 88 Energy Ltd said Wednesday the ice road construction is now underway for the upcoming drilling of the Charlie-1 appraisal well at Project Icewine in Alaska, with permit to drill expected at the end of the month.
The exploration and production company said ice road construction is now fully underway with approximately 25% of the base road now completed and approximately 35% of the total route staked and pre-packed.
The permit to drill was submitted prior to the end of 2019, the company noted, and the approval is expected towards the end of January.
"This is the last major permit required prior to spud of the Charlie-1 well," the company said.
At the Charlie-1 appraisal well, which 88 Energy operates through its subsidiary Accumulate Energy Alaska Inc, drilling is scheduled to begin in February, with flow testing due to conclude in April.
The company said a more accurate forecast for the scheduled February spud program will be communicated in due course.
"As per farm-out agreement, initial cash calls have been receipted into the joint venture account," the company noted.
Back in November, 88 Energy had said all conditions for the Icewine farm-out agreement with Premier Oil PLC and Burgundy Xploration LLC had been satisfied and final agreement was executed.
Premier had signed an agreement with 88 Energy and Burgundy in August 2019 to farm-in for a 60% interest in area A of Icewine in the US state of Alaska.
Dave Wall, managing director of the company, said: "The new year is off to a busy start for the Alaska operations team with all activity progressing as planned."
88 Energy shares were trading 2.3% lower in London at 1.32 pence each on Wednesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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88 Energy (88E)