88 Energy ready to drill, Pantheon news could be a sweetener
88 Energy Limited (ASX:88E; AIM:88E) has executed the drilling contract to drill the Merlin-1 and Harrier-1 wells for Project Peregrine on the North Slope of Alaska.
Further highlighting the company’s imminent drilling campaign is management’s good progress with permitting and planning, leaving 88 Energy on track for its scheduled spud date of February 2021.
This follows last week’s closing out of the group’s farm-out, a development that was well received with the company’s shares increasing 14% in response.
From a broader perspective, 88 Energy has executed a rig contract with All American Oilfield, LLC for the use of Rig 111 to drill the Merlin-1 and Harrier-1 wells at its Project Peregrine in the NPR-A region of the North Slope of Alaska.
Both wells are planned for drilling to a Total Depth of approximately 6000 feet in order to intersect the prospective Nanushuk topset horizons that are located on trend to existing discoveries to the north of the project area.
Success by Pantheon Resources could be well received
In a new development, the $380 million Pantheon Resources (AIM: PANR) has announced that its Talitha-A well, located close to the northern border of the 88E central acreage position, is scheduled to spud in January ’21.
Several of the prospective horizons in Talitha-A are interpreted to extend into 88E acreage as indicated below.
With drilling of Talitha-A well occurring ahead of the Merlin-1 spud, 88 Energy’s share price could receive some support even before drilling results start to filter through if Pantheon has success.
As Pantheon recently highlighted, Alaska North Slope is home to the US’s largest two oil fields and it hosts some of the world’s largest discoveries over recent years, featuring both onshore and conventional (not shale) with enormous potential.
With excellent infrastructure and low royalty rates it is a good place to do business.
Harking back to 88 Energy’s prospects, managing director Dave Wall said today, "The farm-out was finalised late last week and now the rig contract is executed.
"Drilling at Project Peregrine is moving ahead as planned and we are only 3 months away from spud on what will be a potentially company-making prospect for our shareholders.”