88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has contracted Doyon Drilling Inc for the use of the Arctic Fox rig to drill the Merlin-2 appraisal well in Alaska.
It is planned that Merlin-2 will be drilled in February 2022. The well has a planned depth of around 8,000 feet, targeting reservoirs estimated to host up to 652mln barrels oil equivalent.
The company, in a statement, highlighted that it has to date identified several appraisal drilling locations to the east of the Merlin-1 well, where enhanced reservoir thickness and quality are expected.
"We are delighted to be working with Doyon for the upcoming drilling of the Merlin-2 appraisal well in early 2022,” said managing director Ashley Gilbert.
“The Artic Fox is one of the premier rigs on the North Slope and a rig which 88 Energy knows well, having utilised it in previous drilling operations.
"Permitting and planning is already underway and we look forward to providing additional details in relation to the Merlin-2 appraisal well in the coming months."
88 Energy noted that the Merlin-2 well has an estimated geological chance of success of 56%.
The company added that It expects to announce the final drilling location and details of the Merlin-2 appraisal well programme in the coming months.