88 Energy (AIM:88E ) has proposed to raise up to A$10m, before expenses, at A$0.006 or 0.33p per share in order to fund the ongoing evaluation of the prospectivity of its assets and to enable it to identify and exploit new opportunities on the North Slope of Alaska. 

The oil and gas exploration company which operates ~310,000 net acres at Project Icewine and ~195,000 net acres at Project Peregrine located in the North Slope of Alaska, said the placing is being conducted by Cenkos Securities in the UK and EurozHartleys in Australia. 

The placing proceeds will strengthen 88E’s balance sheet as well as provide it with sufficient capital to fund its share of any potential costs associated with drilling at Project Peregrine which the group noted last week has advanced to its final phase of its farmout process. 

The ASX-listed firm acquired Project Peregrine, which consists of 195,000 net acres, as part of its merger with XCD Energy earlier this year, an oil exploration and production company which holds a 100% Working Interest in the highly prospective Alaskan North Slope. 

In September, 88E unveiled new seismic data analysis at Peregrine identifying similarities between the key prospects at Peregrine and existing discovered fields nearby The group said these ‘very encouraging’ findings had boosted the site’s exploration prospects. 

88 Energy said planning work related to drilling two wells at Peregrine - Merlin and Harrier - remains on schedule with an anticipated late February 2021 spud of the first well at the site.  

Meanwhile, the company said the proceeds will also be used to fund payments due in the 12 months from admission in relation to lease rentals on its Alaskan acreage and interest payments on its debt facility as well as to fund new venture opportunities in the North Slope. 

88E reported cash reserves at 30 September 2020 of $4.68m compared to $6.84m in 2019. 

Shares in 88E have increased by almost 20% since the beginning of the month to open 13.64% lower at 0.38p this morning following the announcement. 

Reasons to Follow 88 Energy 

Project Portfolio Across Alaska’s North Slope 

The Alaskan explorer completed its acquisition of XCD Energy, which holds a 100% Working Interest in the highly prospective Alaskan North Slope, back in August 2020. The merged entity has formed a diversified portfolio of exploration projects on Alaska’s North Slope.  

The combined company will have increased scale, market presence along with higher funding capability and trading liquidity across the ASX and London AIM exchanges.   

The three key projects include Project Icewine, Yukon leases and Project Peregrine with the assets at various stages of development, the company previously outlined this summer.  

In recent weeks, 88E was also formally re-assigned the "Area A" leases at Project Icewine meaning its working interest in around 40% of the project has increased from 30% to 75%.   

Positive Newsflow Expected on IceWine  

It recently said an independent resource estimate at Icewine which will integrate the results of the recently successful Charlie-1 well is ‘due within weeks.’ Both an increase in acreage and the resource estimate are expected to facilitate ongoing farm-out discussions at Icewine. The Company highlighted that a new farm-out process will follow the release of the report.  

Positive Newsflow Expected on Yukon 

88E has also informed investors that talks are continuing in regard to the Yukon acreage to optimise the monetisation strategy of the acreage, with permitting continuing for future potential. The Company said it is also planning to bring this project area into a farm-out. 

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