88 Energy Ltd (AIM:88E, ASX:88E) has launched a A$20mln equity raise, with a bookbuild underway for a share placing ahead of a planned appraisal of the Merlin project, onshore Alaska.
The company, in a statement, said it is scheduling the drilling of the Merlin-2 appraisal well in Q1 2022, in the Alaskan winter drilling window.
Placing proceeds will strengthen the balance sheet and provide sufficient capital to finance the drilling and logging of the Merlin-2 and also support the company as it looks at potential new project opportunities.
It expects to have enough working capital and general admin expenses for at least twelve months, it added.
The company, meanwhile, gave investors a quick run-down of activities and plans across its portfolio.
It highlighted the positive recent analysis of results from the Merlin-1 well, which has bolstered its plans for the intended appraisal programme.
The findings at Merlin have also boosted prospects in the vicinity of the Umiat oil field, where additional upside has been identified and optimisation work is underway, assessing the commercial potential of programmes to update historical field development plans.
Elsewhere, it noted that it is reconsidering options at the Icewine acreage where it is eyeing farm-out possibilities following encouraging results from the Talitha-1 well in Pantheon Resources PLC (AIM:PANR, OTC:PTHRF, FRA:P3K)’s neighbouring acreage.
Future exploration drilling is also earmarked in the company’s Yukon acreage, subject to a farm-out, and the company noted talks are ongoing with nearby lease owners.
The placing is being organised by Cenkos in the UK and EurozHartleys in Australia.
Under allowances according to ASX listing rules the company noted that it can issue up to a maximum of A$23.96mln of new equity without requiring shareholder approval.