Anglo-Aussie junior 88 Energy Limited (LON:88E, ASX:88E) has unveiled plans to raise up to A$17mln that will be used to fund the ongoing evaluation of conventional and unconventional oil targets on Alaska’s North Slope.
Brokers in the UK and Australia expect to raise at least A$12mln via a placing of stock at 3.7 cents a share, which represents an 11% discount to the average ASX price over the last month. There is headroom to bring in a further A$5mln if the issue of new stock is over-subscribed.
The company had US$10.5mln in the bank at the end of last month, but has a busy work programme planned, including the imminent re-start of flow testing at the Icewine#2 well at an estimated cost of A$8.6mln (US$6.5mln).
It is also currently collating 3D seismic data from a 450 square-kilometre area of the Icewine Project area incorporating some “big leads” identified via an earlier 2D survey.
Early readout expected in June
Having completed the work on the ground on March 28, processing will now be fast-tracked, 88 said with the “early products from” the current programme expected by June.
Acquiring the 3D data is designed to “mature” and develop conventional targets identified on the western portion of its Icewine lease.
“88 Energy is extremely encouraged by recent conventional and historic analogue discoveries delineated on 3D seismic to the north of the company's acreage within the Brookian sequence,” the company told investors.
Elsewhere, in-house evaluation is ongoing in relation to the recently-acquired Yukon Gold leases, which contain an historic oil discovery, it added.
88 awarded a contract to SAExploration to acquire around 96 square-kilometres of 3D seismic over Yukon – a process that was completed earlier this month.