88 Energy Ltd on Tuesday said the Alaskan Department of Natural Resources, Oil & Gas Division has approved the formation of the Toolik River Unit over the western and central Project Phoenix lease area.

The Australia-based oil explorer in US state of Alaska said it follows its announcement in December, when the company announced the Project Phoenix joint venture had put forward a unit application covering leases within the relevant acreage area.

It said the Alaskan DNR had now confirmed its decision to approve the unit formation, after considering the application. As a result, the leases have now been extended beyond their primary term, with the unit plan of exploration running until February 2028.

Managing Director Ashley Gilbert said the Alaskan DNR approval was a ‘further demonstration of the strong support that 88 Energy, and the broader industry, enjoys from the state of Alaska’.

Shares in 88 Energy were up 3.7% to 0.70 pence each in London on Tuesday afternoon.

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