LONDON (Alliance News) - 88 Energy Ltd and its partners said Thursday they had been granted a drilling permit for the Winx-1 exploration well located in the US state of Alaska, adding that the ice road construction for the site was also progressing well.
The Alaska Oil & Gas Conservation Commission approved the permit to drill the Winx-1 well - for which 88 Energy serves as operator - on the North Slope on Wednesday. This is the first major permit required for the commencement of the drilling at the site.
Winx-1 is targeting a gross best estimate prospective resource of 400 million barrels of oil.
The net barrels of oil for 88 Energy would stand at 144 million barrels based on this estimate. Winx-1 partner Red Emperor Resources NL has a net 126 million barrels attributed to it. In addition, Pantheon Resources PLC holds a 10% working interest in Winx-1 after its acquisition of assets from Great Bear Petroleum Operating LLC.
Shares in 88 Energy were 6.5% higher at 1.16 pence on Thursday, Red Emperor 12% higher at 4.16p and Pantheon up 5.7%.
88 Energy added that construction of the 11 mile ice road to the Winx-1 well is "proceeding as planned", being almost 50% complete.
"The approval of the Permit to Drill marks the end of the permitting process for the drilling of Winx," 88 Energy Managing Director Dave Wall said. "Everything remains on track for a mid-late February spud."
"Our thanks go to the regulatory bodies in Alaska for their assistance in getting the well permitted in a timely fashion, particularly given the tight timeframe with the deal only closing in late July 2018," Wall added. "The 88E operations team in Alaska has done an excellent job and has been ably supported by Great Bear staff."
"It is also worth noting that the first exploration/appraisal well of the season, Pikka-B, has been reported as encountering high porosity, hydrocarbon bearing sand in the Nanushuk Formation, on trend and 15 miles to the north of Winx", Wall continued.
Pantheon Chief Executive Jay Cheatham added that: "Following the closing of the Pantheon's acquisition of the Alaskan assets of Great Bear Petroleum, I am very pleased that things are on track for the upcoming drilling operations at the Winx-1 well, located approximately 4 miles east of Repsol/Armstrong's significant Horseshoe 1/1A discovery."
