88 Energy Ltd (LON:88E) told investors that rig mobilisation for the Merlin-1 exploration well is progressing well and has seen only minor weather-related delay.
The Merlin-1 well is now due to spud on March 8, the company said.
"Pre-spud operations are now entering the final phase as Rig 111 makes it way to the drilling location for Merlin-1,” said Dave Wall, managing director.
Merlin-1 will be drilled down to a total depth of around 6,000 feet, and, subject to results, will be completed for flow testing. A second well, Harrier-1, is slated to follow subject to the Merlin results and weather conditions.
This will be the first well campaign on the Project Peregrine area acquired by the company in 2020.
Dave Wall highlighted: “Success at Merlin-1 could yield over 300 million barrels net to 88E and open up further prospectivity at Project Peregrine, in addition to unlocking the substantial proven resource at the adjacent Umiat oil field, which is 100% owned by 88 Energy.”
“Success at Merlin-1 would be transformational for our shareholders and we look forward to providing further information on operations over the next 4 to 6 weeks."