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88 Energy confirms new funding plans for Alaska oil shale project

88 Energy told investors that trading in its Australian securities had been suspended on April 20 pending an announcement in relation to a potential capital raising.

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In London the AIM share was down 6.98% in Wednesday’s early deals.

88 Energy ltd (LON:88E) has this afternoon confirmed it is currently looking to raise between £5.43mln (A$10mln) and £8.14mln (A$15mln).

The company told investors the potential funding would be priced at 1.9p (3.5 Australian cents).

Earlier today, in a brief stock market statement, 88 Energy told investors that trading in its Australian securities had been suspended on April 20 pending an announcement in relation to a potential capital raising.

“It is currently intended that any such capital raising will utilise the company's existing authorities and will not be subject to shareholder approval,” it said.

“The company confirms that no terms for any such capital raising have been agreed and there can be no guarantee that a capital raising will be completed.”

Trading on AIM continues.

In London, 88 Energy shares were up 0.18p, 8.14%, to change hands at 2.33p each at around 15:30.

BIG PICTURE: 88 Energy emboldened by Icewine’s ‘billion barrel’ potential

The company is seeking funds following the breakthrough success with the first well at Project Icewine, on Alaska’s North Slope, where a potentially very significant shale discovery has been confirmed.

The success in Alaska saw 88 Energy shares rise as much as 800% through the first four months of 2016, and the company is now looking to follow up the encouraging early results.

Next, 88 Energy plans to drill a new well.  Unlike Icewine 1 the next well will be taken horizontally. It will also be fractured and flow tested.

These operations are designed to reveal material insights into the project's commercial production potential.

The possible scale of Icewine’s HRZ shale play is estimated in ‘billions of barrels’. And the upcoming phase of work could prove crucial in 88 Energy proving the very promising estimates.

Quick facts: 88 Energy Ltd

Price: 1 GBX

AIM:88E
Market: AIM
Market Cap: £68.72 m
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