29th Jul 2015 09:30
LONDON (Alliance News) - 88 Energy Ltd Wednesday said it expects to finalise a number of deals in the third quarter which will bolster its cash balance ahead of the plan to drill the Icewine 1 well in Alaska in October.
The oil and gas company operating in Alaska said it expects to finalise the USD50 million funding facility from Bank of America and complete the share placing to raise AUD12 million that was announced last Wednesday during the third quarter of 2015.
That placing was "strongly oversubscribed" and comprised of 1.2 billion shares at 1 Australian cent per share.
88 Energy said it also will finalise "key contracts" for the Icewine #1 exploration well, part of the Icewine project, including the rig contract in the coming months.
The company reported exploration and evaluation expenditure totalling AUD4.4 million on the Icewine project in the second quarter and said net cash outflows were AUD4.9 million in the period.
At the end of June, 88 Energy had net cash reserves of AUD1.2 million, which will be bolstered once the company has formally completed the AUD12 million placing.
The company has an 87.5% stake in the Icewine project with its partner Burgundy Xploration holding the balance. During the second quarter, 88 conducted a field trip to the site confirming its suitability for drilling this October and also held pre-application meetings with regulatory bodies in Alaska to ensure that permits will be issued on time for that drilling to start.
88 Energy shares were up 12% to 0.617 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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