88 Energy Ltd (LON:88E) is working on a potential £10.6mln equity funding, priced at a relatively small discount to yesterday’s closing price.
The Alaska-focussed explorer, which is drilling an eagerly anticipated new well in the coming weeks, said it is seeking to raise gross proceeds of A$17mln (£10.6mln) through a placing of shares at a price of 3.7 Australian cents, 2.3p (Wednesday’s closing price was 2.57p).
As is customary for shares on the Australian Securities Exchange trading has been temporarily suspended in Sydney, though it continues to trade as normal on AIM.
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88 Energy is using existing shareholder authority to raise the new funds, and as such a vote won’t be needed. The terms have yet to be agreed and there’s presently no guarantee that the share issue will be completed.
Preparations for Icewine-2 appraisal well
Last month, 88 Energy hired a rig contractor for the upcoming Icewine-2 appraisal well, which is now confirmed for the second quarter of this year.
The company said that the drilling rig would be mobilised between March 30 and April 30, once the contracted Arctic Fox rig has completed its current job.
Dave Wall, 88 Energy managing director, said: “We are delighted to be working with Doyon for the upcoming drilling of Icewine-2.
“The Arctic Fox is one of the premier rigs on the North Slope and will be coming to us 'warm' off its current job, which has several significant benefits.
“As soon as the Arctic Fox finishes work associated with its current job, we will be ready to start mobilisation and rig up for Icewine-2. Spud is now scheduled for a few short weeks post our initial plan of late Q1 2017.”