88 Energy Ltd (LON:88E) told investors it has finalised its farm-out deal with Premier Oil PLC (LON:PMO) and said that plans for the Charlie-1 appraisal well have now been approved by the new partners.
“The plan of operations is one of the key major permits required for drilling,” the company said in a statement.
“The final major permit is scheduled for submission in December, with approval expected in January ahead of the scheduled February spud date.”
88 Energy added that all other contracting and logistical work is proceeding as planned, ahead of the anticipated February 2020 spud.
Last month, the company provided details of the Charlie project which is an appraisal of the conventional and undeveloped Malguk discovery, made by BP in the early 1990s.
Pre-drill the project has been estimated to have some 1.6bn barrels of prospective resources, which would equate to 480mln barrels for 88 Energy - presently valued at about £50mln (A$96mln).
Premier Oil is to pay up to US$23mln of Charlie’s well costs, as it earns 60% of the project.
Drilling is slated to start in February and, subject to initial findings, well testing is envisaged and would conclude by April.