88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has announced a rights issue to raise up to £6.29mln (A$12mln) of new capital.
Shareholders will be given rights for 1 share for every 10 shares they hold on the record date (Friday 4 August), with the strike price set at 0.31p per share.
The exploration company, in a statement, said the rights issue is designed to “allow existing shareholders exposure to potentially transformational activity over the next 9 months”.
Proceeds are earmarked for work in Alaska, including the flow-testing of the Hickory-1 well at Project Phoenix, and the planning and permitting for a new drill programme at Project Leonis, along with the drilling of development wells and existing well work-overs at Project Longhorn in Texas.
Separately, at Project Peregrine in Alaska, the company today updated resource estimates which see some 2.4bn barrels of prospective resources, across three project areas – Merlin, Harrier and Harrier Deep.
The estimates follow post-well analysis from past operations at Project Peregrine and the company noted that the resource "now its beneath a more condensed acreage position" and the area is modelled to have "improved reservoir quality in the northern areas".
It follows the Merlin-2 well which in March 2022 disappointed despite early excitement. In that location, the well encountered multiple reservoir zones which were subsequently found to have insufficient quality to warrant a production test.
88 Energy also today released its quarterly activities report, in accordance with its ASX regulatory obligations.