88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has announced a rights issue to raise up to £6.29 million (A$12 million) of new capital.
Shareholders will be given rights for 1 share for every 10 shares they hold, on the record date (Friday 4 August), with the strike price set at 0.31p per share.
The exploration company, in a statement, said the rights issue is designed to “allow existing shareholders exposure to potentially transformational activity over the next 9 months”.
Proceeds are earmarked for work in Alaska including the flow-testing of the Hickory-1 well at Project Phoenix, and, the planning and permitting for a new drill programme at Project Leonis, along with the drilling of development wells and existing well work-overs at Project Longhorn in Texas.
Separately, at Project Peregrine, in Alaska, the company today updated resource estimates which see some 2.4 billion barrels of prospective resources, across three project areas – Merlin, Harrier, and Harrier Deep.
The estimates follow post-well analysis from past operations at Project Peregrine, and, the company noted that the resource ‘now its beneath a more condensed acreage position’ and the area is modelled to have ‘improved reservoir quality in the northern areas’.
It follows the Merlin-2 well which in March 2022 disappointed despite early excitement. In that location, the well encountered multiple reservoir zones which were subsequently found to have insufficient quality to warrant a production test.
88 Energy also today released its quarterly activities report, in accordance with its ASX regulatory obligations.