88 Energy (LON:88E, ASX:88E) has secured approval for the oil spill contingency plans in relation to its upcoming exploration well in the Arctic.
The approval had been seen as the longest lead time approval for the hotly anticipated Icewine well.
Unexpectedly, however, the Alaska Oil and Gas Conservation Commission has requested additional information regarding its drilling plans and as a result the programme has encountered a delay.
88 Energy anticipates this extra information can be incorporated into a modified application by October 19, and a permit would likely be approved in the same week.
Dave Wall, 88 Energy managing director, described the delay as a “seemingly inevitable left field issue”.
“We appreciate that this is frustrating for shareholders at this late stage; however, the company has the situation well in hand," he said.
Project Icewine comprises an exciting shale play as well as conventional oil targets on the acreage.
It is estimated as having an unconventional prospective resource of 492mln barrels of oil. With a probability of geological success of 41%, the risked mean prospective resource is 200mmbbls.
The area is also attractive in other ways. Alaska, keen to encourage investment to offset steep declines in the production that is the life blood of this Arctic state, offers a generous 75-85% exploration and development cash rebate.
Moreover the asset is bordered by an already-established hydrocarbon province in the Great Bear acreage of privately owned Great Bear Petroleum, immediately to the north of Project Icewine.