ASX-listed 88 Energy is set to raise $17.5 million to fund several of its oil exploration projects in Alaska.
The explorer is orchestrating an oversubscribed placement to raise funds through domestic and international institutional and sophisticated investors.
The Perth-based company has set an issue price of 0.95 cents per share to fund the next stages of its Alaskan project’s Phoenix and Leonis and to boost its balance sheet.
The issue price represents a 20.8 per cent discount on 88 Energy’s closing price of 1.2 cents per share on February 1.
The money raised will fund the planned Hickory-1 oil exploration well at its Phoenix project and cover the costs of pruchasing acreage at Leonia project.
In today’s announcement, Energy 88 said it will be focusing on advancing its Hickory-1 well, which is expected to spud in March.
“Completion of this placement ensures 88 Energy is fully funded for the drilling cost of the Hickory-1 exploration well and, upon success, a flow test to be carried out during the 2023-24 winter operational season in Alaska," managing director Ashley Gilbert said.
“Funds will also be directed toward the initial acreage payment and further assessment of project Leonis.
“We also continue to pursue additional new ventures, targeting opportunities across the asset life cycle that are complementary to our existing portfolio and provide shareholders with exposure to further value creation potential.”
