88 Energy (LON:88E) has taken an important step forward as it prepares for its first well in Alaska.
The company this morning confirmed it has now formally been awarded the necessary documentation for the exploration acreage.
Joint venture partner Burgundy Xploration LLC, which was named the highest bidder for the project in November, has now received the award of 63 tracts of land, totalling 89,542 acres.
88 via its wholly owned subsidiary Accumulate Energy Alaska will have an 87.5% interest in the acreage, meanwhile Burgundy also retains a 4% royalty over any future production.
Accumulate will be the operator of the exploration project, and it is expected to be ‘on title’ in a matter of weeks.
Dave Wall, 88’s managing director, said: "Whilst the award and assignment process is largely administrative in nature, it is a crucial piece of the puzzle and another meaningful step forward for the company and its shareholders.”
“We look forward with great anticipation to the upcoming drilling of the Icewine #1 well prior to year end."