88 Energy Limited (ASX:88E, LON:88E) said it had raised A$6.75mln to fund ongoing work in Alaska.
Specifically, the new cash injection will be used to bankroll the additional costs of the Charlie-1 well over and above the expenditure being carried by its partner, Premier Oil (LON:PMO).
“Drilling Charlie-1 will be a pivotal moment for the Company as it seeks to unlock the large potential of the conventional plays on the acreage,” said managing director Dave Wall.
The additional monies will also go towards lease rental payments due on Alaskan acreage and interest charges on 88’s debt facility as well as being ploughed into “new venture opportunities”.
Investors bought new stock in the company at 1.25 cents a share, or the equivalent of 0.7p.
88 was off 5% at 0.67p in early afternoon trading.