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(Alliance News) - 88 Energy Ltd on Monday said it has secured a permit to drill its Merlin-1 well in Alaska.
Approval was granted by the deputy assistant secretary for Land & Minerals Management on Friday, 88 noted.
The oil producer said the well is expected to be spudded around late February and early March.
"In anticipation of the approval, field operations recommenced last week with commissioning of Rig 111 nearing completion. Rig mobilisation is scheduled to commence later this week," the company explained.
88 Energy shares were 6.8% higher at 0.51 pence each in London on Monday morning.
The stock had plunged late last month when it noted 60-day suspension of authority for US government offices to issue new drilling permits on Federal land. This came ahead of US President Joe Biden's announcement of a wide-ranging moratorium on new oil and gas leasing on US lands.
However, last Wednesday, 88 Energy received notice from the Alaska Bureau of Land Management, saying it planned to sign the permit to allow the company to drill the Merlin-1 well, which is the National Petroleum Reserve-A region of the North Slope of Alaska.
By Eric Cunha; ericcunha@alliancenews.com
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