By Samuel Indyk
Investing.com – 88 Energy (LON:88E) has today provided an update on operations at the Merlin-2 appraisal well, where it remains on track for the spud of the well in February 2022. Snow road construction preparations are underway and construction is expected to commence prior to the end of 2021, subject to weather conditions.
The company said pre-commissioning inspection of the Arctic Fox rig is planned for early January with an inspection prior to contracting the rig confirming it to be in excellent condition. Commissioning of the rig is expected to occur following the rig inspection in January and immediately prior to mobilisation of the drill site.
The Merlin-2 appraisal well in Alaska is planned for a total depth of 8,000 feet, and is targeting 652 million barrels of oil in the N18, N19, and N20 targets.
In addition to the news, 88 Energy has agreed to pay a key contractor involved in the Merlin-2 operations with new ordinary shares of up to $7.5 million. In consideration, 88 Energy has agreed to issue the contractor 407,650,000 new ordinary shares at a price of AUD 0.026 per share.
The new shares will be held in escrow and subject to certain conditions. They will only be released following approval from 88 Energy.
At 10:12GMT, shares in 88 Energy were trading flat at 1.351 pence per share.