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88 Energy rallies as company readies for permit and start of Merlin well operations

“We are fortunate to have strong local support in Alaska and, as a result, will soon be back on track for the drilling," managing director Dave Wall said

88 Energy Ltd - 88 Energy rallies as company readies for permit and start of Merlin well operations

88 Energy Ltd (LON:88E) shares rallied in Wednesday’s opening deals after it last night told investors that field operations for the Merlin exploration well are expected to get underway in Alaska in the next few days.

It comes after a number of days of regulatory uncertainty amidst certain interim changes to the permitting for oil and gas projects in the United States, following the inauguration of Joe Biden as America’s new president.

Nonetheless, the company in a statement last night said that the Alaska branch of the Bureau of Land Management (BLM) is currently reviewing the company’s permit to drill and the authority has indicated that it is now very close to being complete with only minor outstanding items

88 Energy said it expects the process will be complete by Thursday, January 28.

Additionally, the company said that it has received confirmation from the BLM that the Assistant Secretary for Land and Minerals intends to sign the permit, subject to prior completion of the review.

No material costs are related to the permit approval, the company noted.

“We are fortunate to have strong local support in Alaska and, as a result, will soon be back on track for the drilling of Merlin-1, commencing in late February/ early March 2021,” said managing director Dave Wall.

In London, 88 Energy shares rose by 23% to change hands at 0.52p shortly after Wednesday’s trading began.

Quick facts: 88 Energy Ltd

Price: 0.55 GBX

AIM:88E
Market: AIM
Market Cap: £66.89 m
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