88 Energy Ltd (LON:88E) has raised A$5mln of new capital ahead of next months drill programme at the Charlie appraisal well.
The explorer, in a statement, said the capital injection would cover any potential costs above those carried by Premier Oil PLC (LON:PMO) via its farm-in to the Charlie project.
It will also pay for lease rental payments for the Alaskan acreage, interest on debt, and support new venture activity, 88 Energy added.
A total of 238mln new shares are being sold to investors at a price of 2.1 Australian cents, equating to 1.1p per share – versus a London market price of 1.23p.
READ: 88 Energy says Charlie is on track for February spud[hhmc]
"The decision by the board to raise additional funds at this time was for several reasons, namely: unsolicited demand for investment at a premium to the most recent placement in September 2019; and a subsequent incremental increase in the well cost due to high grading of the quality of the evaluation program,” said Dave Wall, 88 Energy managing director.
“We would like to thank our advisers and shareholders for their continued support as we enter into this critical phase.”
Premier is paying up a total of US$23mln to drill Charlie which is designed to be an appraisal of the Malguk-1 discovery made by BP in 1991.
Malguk-1 discovered 251 feet of light oil Read More – Source
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