|
88 Energy Ltd on Monday confirmed its permit to drill permit was approved for the Hickory-1 well and raised funds through the placing of 1.84 billion shares to support drilling. Shares were up 8.3% to 0.76 pence each in London on Monday around midday. The Alaska-focused oil explorer said the permit to drill has been approved by the Alaska Oil and Gas Conservation Commission for the Hickory-1 well, located in Project Phoenix on the north slope of Alaska. It said the ice-pad construction of the Hickory-1 well will start imminently ahead of drilling. 88 Energy added that the planning and permitting for the Hickory-1 well is now largely complete with the approval of the AOGCC permit to drill, ahead of targeted spud in early March this year. It estimates that drilling costs for Hickory-1 well are to be $13.5 million gross. ‘Flow testing of the Hickory-1 well is planned to be undertaken in the 2023/24 winter season, subject to well results, providing sufficient time post-drilling to optimise the flow test design, permitting and implementation,’ the company added. Separately, 88 Energy said it raised A$17.5 million, or about £10.0 million, through the placing of 1.84 million shares at A$0.0095 each. This represents a 21% discount to the closing price of A$0.012 last Wednesday. Managing Director Ashley Gilbert said: ‘Completion of this placement ensures 88 Energy is fully funded for the drilling cost of the Hickory-1 exploration well and, upon success, a flow test to be carried out during the 2023/24 winter operational season in Alaska. Funds will also be directed toward the initial acreage payment and further assessment of Project Leonis.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
