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UPDATE - 88 Energy in US$50mln funding deal with BoA

Last updated: 11:15 24 Jun 2015 BST, First published: 07:25 24 Jun 2015 BST

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Bank of America will provide up to US$50mln, subject to due dilligence

--ADDS SHARE PRICE--

88 Energy (LON:88E) shares gained more than 15% on Wednesday morning after telling investors it had conditionally secured a significant US$50mln funding facility with Bank of America (BOA).

The Alaska oil explorer signed a letter of intent with BoA which may now approve funding for specific projects, subject to due diligence.

"It is an exceptional opportunity for 88 Energy to have engaged with a global corporation of the calibre of Bank of America,” said managing director Dave Wall.

“We are confident of progressing through the due diligence required to close the debt facility in a timely manner as the spud date for the Icewine #1 well approaches."

88 Energy aims to start drilling the first well at Project Icewine, in Alaska, in the second half of this year.

The plans have been boosted by neighbouring successes, notably Repsol’s significant conventional discoveries with its Qugruk wells.

88 Energy is primarily focused on an unconventional play in the area; however, there is conventional potential too and the plan is to explore those follow seismic programmes.

The company has an 87.5% interest the project, which spans 89,542 acres of Alaska’s North Slope.

On AIM, 88 Energy shares gained 0.12p, 17.25%, to trade at 0.85p.

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