88 Energy Plc (LON:88E) has released a quarterly activities update, for the three months ended December 31, 2020, highlighting its progress at Project Icewine and Project Peregrine.
The Alaska-focused explorer noted the updated evaluation of Project Icewine, integrating the full findings of the Charlie-1 well, along with the start of a new farm-out process aimed at securing an exploration drilling campaign for 2022. An in-house study was meanwhile launched to consider gas monetisation options.
The company also absorbed back interests in the “Area A” portion of Icewine, to again retain 100% of the asset.
At Peregrine, the company struck a farm-out deal in early December. It is a tie-up with a special purpose vehicle, called Alaska Peregrine Development Company (APDC), which will earn 50% of the asset by contributing US$11.5mln to the cost of drilling of the Merlin-1 well.
Permitting and planning is advancing, aiming for a start to a two-well programme as soon as February.
In recent weeks, in the current quarter, the company has expanded its footprint in the nearby area having agreed to acquire the Umiat Oil Field and separately was notified that it will be awarded acreage in an area referred to as “Tract 29”.