$14.9M raised to finance future exploration programs
This morning our oil and gas Investment 88 Energy (ASX: 88E) came out of a trading halt, having completed a capital raise.
88E raised a total of $14.9M at 0.9c per share.
This adds to 88E’s existing cash reserves of $6.1M (as of 31 July 2022), meaning the company should have ~$21M to finance its future exploration programs.
With the balance sheet a lot stronger now, 88E plans to use the funds for the following:
- Exploration program at the Icewine East project (where 88E just put out a gross unrisked mean prospective resource of 1.03 billion barrels of oil)
- New ventures and portfolio expansion opportunities
88E also confirmed that the company is currently advancing planning works for its Icewine East project with a target to conduct at least one flow test from 4 reservoir targets in 2023.
After acquiring 3D seismic data over its Icewine East acreage, 88E is still continuing to interpret the data on hand to determine the highest priority drilling targets for its 2023 exploration program.
With its London listed neighbour Pantheon Resources (capped at $1.7 billion) preparing to run a flow test over its Alkaid #2 well immediately to the north of 88E’s ground, we think any exploration success from Pantheon could translate to a lot more market interest in 88E’s ground.
To see our previous Quick Take on where Pantheon is at with respect to its drilling program, check out our previous 88E Quick Take here.
