88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has agreed a 12-month pause under the Project Peregrine leases, with the Bureau of Land Management Alaska (BLM) allowing the exploration company to retain the high potential acreage.
Specifically, the suspended acreage spans some 125,735 acres.
The exploration company said the decision followed discussions with the BLM regarding proposed new regulations and told investors it remains committed to Project Peregrine. It comes as around A$500,000 of lease rental payment is due in the first quarter of 2024.
For now, the company’s focus will be on the desktop preparation work for the Harrier-1 well along with the newly defined N12 and N13 prospects.
“88 Energy remains committed to Project Peregrine, with exploration and technical analysis undertaken in 2023 identifying the new N12 and N13 prospects in the world-renowned Nanushuk Formation,” the company said in a statement.
“The Harrier-1 exploration well remains a key, undrilled target in the northern areas of the Project Peregrine leases.
“Harrier-1 has the potential to assess up to three independent Nanushuk reservoirs from the single ice pad locations via a sidetrack from the Harrier-1 well pad, resulting in significantly lower exploration costs."
It added: “The company is targeting a farm-out to fund any future exploration efforts at Project Peregrine subsequent to a resolution in the current consultation process concerning future regulations in the NPRA.”