88 Energy Limited announced Wednesday that it has completed a share placing operation to raise $8.8 million, which will help fund exploration programs onshore Alaska.
Funds from the share placement, which was “strongly oversubscribed” according to the company, will be applied to progress exploration at 88 Energy’s Project Icewine, which covers 98,182 acres of Alaska’s North Slope. The money raised will fund the equity component of the company’s planned drilling program at Project Icewine, which is expected to commence in October 2015.
Commenting on the success of the placement, 88 Energy managing director Dave Wall said in a company statement:
“Notwithstanding the dilutive impact of the placement, the leverage afforded to our shareholders by the substantial upside potential at Project Icewine remains compelling. The overwhelming support shown by new and existing shareholders for the placement is a testament to both the quality of the project and the hard work by the company, its partners and its advisers. With the close of the BOA facility [a $50 million funding facility from Bank of America] expected within the coming weeks, 88 Energy will be fully funded to test the significant unconventional resource prospectivity of Project Icewine via the drilling of the high impact Icewine #1 exploration well, scheduled for an October spud.
“Recent transactional activity on neighbouring acreage also highlights the conventional potential on the North Slope, which also exists on our Project Icewine acreage, and the increased level of industry interest in the region. An announced four well drilling campaign on acreage adjacent to the Project Icewine boundary is likely to provide significant catalysts for 88 Energy and its shareholders, commencing from late 2015.”
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