88 Energy raises $10m

Perth-based 88 Energy has completed a $10 million share placement to fund continuing exploration work in Alaska’s North Slope.

88 Energy said it would use the funds, together with its existing cash reserves of $4.6 million, to fund the ongoing evaluation of its assets including the Peregrine project. The wells are due to spud in late February.

The funds will also enable 88 Energy to pursue new opportunities in Alaska, the company said.

Managing director David Wall said the company would continue to drill the Merlin-1 and Harrier-1 exploration wells to test multiple conventional targets in the first quarter of calendar 2021.

88 Energy will issue up to about 1.7 billion shares priced at 0.6 cents each to raise up to $10.07 million.

Euroz Hartleys Securities acted as lead manager and bookrunner to the placement.

88 Energy shares closed down 12.5 per cent to trade at 0.7 cents each.