88 Energy (LON: 88E, ASX: 88E) has raised $3 million through an oversubscribed share placing. The company will also open a share purchase plan to eligible existing shareholders with a view to raising a further $2 million.
This comes after 88 Energy has increased its position on Alaska’s North Slope, an area referred to as Project Icewine, where it is currently drilling an exploration well that is designed to test a large shale play, along with a number of conventional oil and gas targets.
The raised funds are earmarked for payment to secure the company’s extended footprint at Icewine. On Nov. 19, 88 Energy revealed that it could acquire 174,240 acres to take the total size of the project to 272,242 acres.
To raise the $3 million, 88 Energy is issuing 300 million new shares at 1 cent each. On AIM, 88 Energy shares rose 3.7% on Friday to trade at 0.55p each.