88 Energy Ltd - Australia-based oil explorer in US state of Alaska - Plans up to AUD30 million, about GBP15.9 million, equity raise after receiving permission to drill its Merlin-2 appraisal well in the North Slope of Alaska. Back in August, 88 Energy said the Merlin-1 well had found light oil. Both are in Project Peregrine in the NPR-A region of the North Slope. Moving quickly after getting permission for the Merlin-2 well, 88 Energy says the Arctic Fox rig has been commission and mobilisation to the location has started. Merlin-2 is scheduled to spud early next month, with drilling to a total depth of 8,000 feet expected to take three to four weeks and targeting a mean unrisked prospective resource of 652 million barrels of oil.
The cost of drilling Merlin-2 is expected to be USD28 million, and 88 Energy had AUD32.3 million, about USD23.4 million, in cash on December 31. The equity raise to top this up is being led by Cenkos Securities PLC in the UK and EurozHartleys Ltd in Australia. The placing price will be AUD0.035, about 1.8 pence. The AUD20.0 million raise will accept over-subscriptions of up to AUD10.0 million.
Current stock price: 2.36p, down 12.5% on Thursday
12-month change: up from 0.47p
By Tom Waite; thomaslwaite@alliancenews.com
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88 Energy (88E)