Exploration company 88 Energy said it had received “overwhelming support” from investors who raised $3million to fund its purchase of extra acreage in Alaska.
The company, which has high hopes for its flagship Icewine prospect on Alaska’s North Slope, is pursuing further opportunities in the region and looked to raise additional capital through a shares issue which was strongly oversubscribed.
The company is to offer eligible shareholders the opportunity to participate in a share purchase plan to raise a further $2 million.
The money will be used to pay a deposit for new acres on the North Slope and for potential payments in respect of the Icewine Project seismic acquisition, ongoing exploration of Project Icewine and for working capital purposes. It aims to acquire an additional 174,240 acres taking it total territory to 272,242 acres.
Managing director Dave Wall, said: “The acquisition of the additional acreage was considered strategically important ahead of the results of Icewine#1 as we feel that we have a competitive advantage in identifying where the play may work.
“The low oil price also meant that competition was scarce, resulting in an opportunity to create maximum leverage for our shareholders.”
“Overwhelming support was shown by new and existing shareholders for the placement and our strategy at this exciting time for the company.”
88 Energy believes Icewine #1 well, currently being drilled, could reveal “huge” unconventional resource potential.
Wall added: “Any success at Icewine #1 will result in substantial industry interest, which we hope will lead to a highly accretive farmout in 2016.”