88 Energy Limited announced Friday that it has successfully raised $3 million through a “strongly oversubscribed” share placing.
The money raised through the placement will help fund the acquisition of new acreage on Alaska’s North Slope, as well as potential payments in respect of seismic acquisition and ongoing exploration for the company’s Icewine project. In addition to the placement, the board of 88 Energy has also offered eligible shareholders the chance to participate in a share purchase plan to raise a further $2 million.
88 Energy Managing Director, Dave Wall, commented in a company statement:
“The acquisition of the additional acreage was considered strategically important ahead of the results of Icewine#1 as we feel that we have a competitive advantage in identifying where the play may work. The low oil price also meant that competition was scarce, resulting in an opportunity to create maximum leverage for our shareholders.
“Overwhelming support was shown by new and existing shareholders for the placement and our strategy at this exciting time for the company. 88 Energy remains well placed ahead of the completion and evaluation of the Icewine#1 well, which may shortly reveal huge unconventional resource potential at Project Icewine. Any success at Icewine#1 will result in substantial industry interest, which we hope will lead to a highly accretive farm-out in 2016.”
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