88 Energy Ltd (AIM:88E, ASX:88E) confirmed the close of its equity placing which raised A$23.96mln, the maximum allowed without shareholder approval.
The Alaska focused oil explorer launched the placing earlier this week as it prepares plans for its next steps for the Merlin project, along with its other prospects in the American state’s North Slope region. Specifically, proceeds will fund the planned Merlin-2 appraisal well, slated for Q1 2022.
A total of 855.8mln new shares are being sold to investors at a price equivalent of 1.49p (2.8 Australian cents) to raise the equivalent of £12.71mln.
"Completion of this placing positions 88 Energy strongly as planning and preparations continue for drilling of the Merlin-2 appraisal well,” said chief executive Ashley Gilbert.
“We will continue to evaluate potential strategic partners for the Peregrine Project, in which we maintain a 100% working interest. However, ensuring our ability to fully fund Merlin-2 via this placing delivers us excellent commercial leverage and optionality with respect to these discussions.”
Gilbert also said the funds support the company as it seeks to unlock value in its Yukon acreage package, where it is presently looking to collaborate via a ‘joint development area’ with neighbouring potential partners.
88 Energy also intends to advance the recently acquired Umiat oil field and reassess its Icewine acreage in light of nearby success (namely Pantheon Resources PLC (AIM:PANR, OTC:PTHRF, FRA:P3K)’s Talitha discovery well).
Focussing on Merlin-2 preparations Gilbert highlighted that the permitting process is on-schedule.