88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it is on-track to spud the Merlin-2 appraisal well in February 2022 as it updated on operations in Alaska.
The company, in a statement, said that snow road construction preparations underway ahead of the Merlin-2 drilling operations. Permitting is meanwhile said to be well advanced, with the permit to drill expected by year end,
Commissioning of the Artic Fox drill rig is slated to start in January, followed by the spud in February.
Merlin-2 is planned to be drilled down to a depth of 8,000 feet. It is targeting some 652mln barrel oil targets (the N18, N19 and N20 targets encountered in Merlin-1).
Additionally, the company noted that contractors can be paid via equity – an issue of 88 Energy shares have been issued into escrow, as pre-payment, and they can be sold for cash which will be retained in escrow until relevant invoices are received and paid following completion of the drilling operations.