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88 Energy to raise up to A$12m through discounted equity placing
StockMarketWire.com
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88 Energy announced plans to raise up to A$12 million through the placing of shares at a discount as the oil and gas exploration company prepared to spud its Merlin well in Alaska.
The company also announced that managing director Dave Wall will leave the company in May.
The placing price was equivalent to a discount of 27% to the closing price of the company's shares on the Australian Securities Exchange on 9 February 2021.
The proceeds of the placing, together with the company's existing cash reserves, would be 'used to fund the ongoing evaluation of the conventional and unconventional prospectivity of the company's existing assets, and to enable it to identify and exploit new opportunities on the North Slope of Alaska,' it added.
The company said it was on schedule to spud the Merlin-1 well in late in late-February / early-March 2021, with drilling and logging of the well anticipated to be completed by mid-March.
'Subject to positive results from the Merlin-1 logging program and having adequate funding in place through the placing, the joint venture expects to then elect to flow test the well which is anticipated to last up to 10 days before proceeding to the spudding of the Harrier-1 well in late March / early April 2021,' it added.
The company also said it had decided that not to renew several leases at project Icewine as they were no longer considered prospective.
These leases represented approximately 25% of the gross lease position, resulting in a 231,000 net acreage position for 88E in the Central North Slope, the company added.
At 8:41am: (LON:88E) 88 Energy Ltd share price was 0p at 0.47p
Story provided by StockMarketWire.com
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