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(Alliance News) - 88 Energy Ltd on Monday confirmed its permit to drill permit was approved for the Hickory-1 well and raised funds through the placing of 1.84 billion shares to support drilling.
Shares were up 8.3% to 0.76 pence each in London on Monday around midday.
The Alaska-focused oil explorer said the permit to drill has been approved by the Alaska Oil and Gas Conservation Commission for the Hickory-1 well, located in Project Phoenix on the north slope of Alaska.
It said the ice-pad construction of the Hickory-1 well will start imminently ahead of drilling.
88 Energy added that the planning and permitting for the Hickory-1 well is now largely complete with the approval of the AOGCC permit to drill, ahead of targeted spud in early March this year.
It estimates that drilling costs for Hickory-1 well are to be USD13.5 million gross.
"Flow testing of the Hickory-1 well is planned to be undertaken in the 2023/24 winter season, subject to well results, providing sufficient time post-drilling to optimise the flow test design, permitting and implementation," the company added.
Separately, 88 Energy said it raised AUD17.5 million, or about GBP10.0 million, through the placing of 1.84 million shares at AUD0.0095 each. This represents a 21% discount to the closing price of AUD0.012 last Wednesday.
Managing Director Ashley Gilbert said: "Completion of this placement ensures 88 Energy is fully funded for the drilling cost of the Hickory-1 exploration well and, upon success, a flow test to be carried out during the 2023/24 winter operational season in Alaska. Funds will also be directed toward the initial acreage payment and further assessment of Project Leonis."
By Xindi Wei, Alliance News reporter
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