Subiaco-based 88 Energy is seeking $24 million to progress drilling at a major project in Alaska.
Subiaco-based 88 Energy is seeking $24 million to progress drilling at its Merlin-2 well in Alaska.
Funds raised will also go towards the company’s existing working capital and enable the identification and execution of new project opportunities.
The company will issue about 855 million shares priced at 2.8 cents each, with Euroz Hartleys acting as the lead manager.
88 Energy said the Merlin-2 Well is targeting prospective resource of 652 million barrels of oil.
Managing director Ashley Gilbert said the company’s ability to fully fund Merlin-2 would provide the company with the commercial leverage and optionality.
“Other key activities over the coming months include the targeted unlocking of value in our Yukon acreage via advancing negotiations with nearby resource owners for a joint development area, optimisation of historic Umiat oil field development plans, and reassessment of our Icewine acreage following the neighbourhood Talitha-1 well drilled earlier this year,” he said.
Drilling is scheduled to start in the first quarter of 2022.
It follows completion of the Merlin-1 drilling program earlier this year.