(Alliance News) - 88 Energy Ltd on Wednesday confirmed it has received notice from the Alaska Bureau of Land Management it is planning to sign a permit allowing the company to drill Merlin-1 well in the NPR-A region of the North Slope of Alaska.
Shares in the oil producer were 25% higher in London on Wednesday morning at 0.52 pence each, hitting an intraday peak of 0.59p. Over the past 12 months, however, the stock is down 59%.
88 Energy shares had plunged on Friday last week as it noted a recently announced 60-day suspension of authority for US government offices to issue new drilling permits on Federal land.
US President Joe Biden is set to announce a wide-ranging moratorium on new oil and gas leasing on US lands, as his administration moves quickly to reverse Donald Trump's policies on energy and the environment and address climate change.
The Associated Press said two sources outlined the proposed moratorium, which will be announced on Wednesday.
The move follows a 60-day suspension of new drilling permits for US lands and waters announced last week and follows the new president's campaign pledge to halt new drilling on federal lands and end the leasing of publicly owned energy reserves as part of his plan to address climate change.
Managing Director Dave Wall said Wednesday: "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, early March 2021."
The Alaska BLM is currently reviewing the permit to drill, submitted on January 12, and has indicated that it is now "very close" to being complete with "only minor outstanding items".
88 expects the review to be complete by January 28.
Field operations will now recommence in the next few days after a six-day delay, 88 noted.
By Paul McGowan; paulmcgowan@alliancenews.com
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88 Energy (88E)