88 Energy Ltd (LON:88E) told investors logging-whilst-drilling data indicated multiple potentially hydrocarbon bearing zones in the Merlin-1 well in Alaska.
The company added that wireline logging will commence shortly to confirm whether mobile hydrocarbons are present.
It highlighted that in Merlin-1 the Nanushuk formation, which contains the primary targets, was confirmed in the well.
Oil shows were recorded over multiple intervals in the Nanushuk while drilling Merlin-1, including in the primary targets, it added.
Similarly, it noted that fluorescence was also observed in the drilling mud accompanied by a petroliferous odour over three of the target intervals. One of these is also interpreted to be part of a potentially separate package that is also present in the Harrier prospect (which is next on the drill schedule).
The results are considered encouraging, the company said.
"Whilst there is still work to do to confirm a discovery, the results to date are encouraging and we look forward to providing an additional update on the wireline program in 7 to 10 days," said Dave Wall, managing director.