88 Energy plans placing to raise A$17m for Alaskan operations

88 Energy Limited has outlined plans to raise as much as A$17m to fund the ongoing evaluation of conventional and unconventional oil targets on the North Slope in Alaska.

The dual-listed A$12m will be sought through the placing of new ordinary shares at 3.7 cents a share, an 11% discount to the average ASX price over the past month, while a further A$5m of new shares can be brought in if the initial placing is over-subscribed.

88 Energy had $10.5m in the bank at the end of last month but seeks further funding to assist with a busy work programme.

At Project Icewine, the company’s operation targeting oil at North Slope, flow testing is to restart imminently at the Icewine #2 well at a projected cost of A$8.6m.

Furthermore, the company is collating 3D seismic data from a 450km squared area on the western side of the project with a focus on areas of interest identified through a prior, 2D survey.

Meanwhile, the company continues to evaluate territory gained through the recent acquisition of Yukon Gold licences which are home to an historic oil discovery.

As of 0913 BST, 88 Energy’s shares were down 16.19% at 2.26p.