88 Energy to raise $12m

Local oil and gas explorer 88 Energy has received firm commitments for a $12 million capital raising to fund ongoing work at its Icewine project in Alaska.

The raising will be completed through the placement of 1.2 billion shares at 1 cent each to institutional and sophisticated investors.

The company, which recently changed its name from Tangiers Petroleum, plans to use the funds to progress exploration at the Icewine project, with drilling expected to begin in October.

“The overwhelming support shown by new and existing shareholders for the placement is a testament to both the quality of the project and the hard work by the company, its partners and its advisers,” 88 Energy managing director David Wall said.

“88 Energy will be fully funded to test the significant unconventional resource prospectively of the Icewine project via the drilling of the high impact Icewine #1 exploration well, scheduled for an October spud.”

Hartleys acted as sole lead manager to the placement, with Patersons Securities, Cenkos Securities and APP Securities acting as co-managers.

Shares in 88 Energy were 14.3 per cent lower to 1.2 cents each at the close of trade.