88 Energy Ltd (LON:88E) has told investors that the preparation for the Charlie-1 well is “progressing to plan” with spudding expected soon.
In a statement, he Alaska-focused explorer said that ice road construction is underway and its base layer is presently about 25%.
A permit to drill has been submitted, with approval expected in January.
READ: 88 Energy finalises Premier farm-out
It said that a more accurate forecast for the anticipated February spud along with the timings for drilling, logging and testing will be communicated in due course.
"The New Year is off to a busy start for the Alaska operations team with all activity progressing as planned,” said Dave Wall, 88 Energy managing director.
Initial cash call funds have been receipted into the joint venture account, the company added.
Under a farm-out agreement, finalised in November partner Premier Oil PLC (LON:PMO) is to pay up to US$23mln of Charlie’s well costs, as it earns 60% of the project.
The Charlie-1 well aims to appraise the conventional and undeveloped Malguk discovery, made by BP in the early 1990s.
Pre-drill the project has been estimated to have some 1.6bn barrels of prospective resources, which would equate to 480mln barrels for 88 Energy - valued at about £50mln.