88 Energy Ltd (LON:88E, ASX:88E) has launched a A$10mln equity funding with the cash earmarked for the on-going evaluation of both conventional and unconventional prospectivity across its acreage in Alaska.
It follows last month’s high profile farm-out deal to bring Premier Oil PLC (LON:PMO) into a portion of Project Icewine’s conventional acreage by committing US$26mln to the planned Charlie well, due in early 2020.
The new funding will support any of 88 Energy’s share of costs for Charlie and also allow the explorer to identify new opportunities on Alaska’s North Slope.
Specifically, 88 Energy said it will cover lease rental payments due on its Alaskan acreage, interest payments on its debt facilities, and ongoing working capital requirements.
It is aiming to sell placing shares at a price of 1.25 Australian cents, representing a 20% discount to the recent market price.