Australian-based 88 Energy (88E) said on Tuesday that it had executed a rig contract with Nordic-Callista Services to utilise Rig-3 for the drilling of the group’s Charlie-1 well at Project Icewine.
The group previously used Rig-3 for the drilling of its Winx-1 well in March this year, reporting that they were “extremely pleased” with the results after a safe and efficient performance was recorded throughout the course of operations.
The rig contract concerning Project Icewine was received via 88’s wholly owned subsidiary, Accumulate Energy Alaska, or ‘Accumulate’ in anticipation for its upcoming drilling of Charlie-1.
The company explained that significant process has been made at Charlie-1 with only two permits outstanding -- these permits for planning operations and drilling are now in the process of being finalised and approved.
Shares in 88 Energy jumped over 13% following the news.
Drilling at the site is scheduled to commence in February 2020 with flow testing anticipated to conclude in April 2020.
88 Energy will operate Charlie-1, via its 100% owned subsidiary Accumulate Energy Alaska, Inc, with the cost of the well to be funded by Premier Oil Plc up to $23 million under a recent farm-out agreement.
The farm-out with Premier Oil is expected to be completed according to schedule, with all conditions expected to be met before the end of November 2019, the firm revealed.
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