88 Energy says it is now funded for at least the next 12 months, with N$123 million (A$9.9 million) from selling 3.1 billion shares and the existing cash reserves of N$218 million (A$17.5 million) as at 31 March 2024.
The company wants to use the money for completing a 2D seismic program, generation of a maiden prospective resource report and other studies associated with the Blocks 1717 and 1817 PEL 93 in Owambo Basin.
88 Energy, which signed a US$18.7 million earn-in agreement with Monitor Exploration Limited in November 2023, wants to start the 2D seismic program mid-2024.
Plans to start drilling have been set for mid-2025.
The money will also be sued at the Hickory-1 discovery well in Alaska where 88 Energy successfully conducted a flow test.
88 Energy wants to complete post-well testing and analysis at Hickory-1, secure a contingent resource for the SFS and SMD reservoirs, and start a formal farm-out process to attract a high-quality new partner to fund the next stage of appraisal and development.
Additionally, 88 Energy wants the money for advance planning and design of an early-stage production system.
The Project Leonis in Alaska, where 88 Energy wants to secure a farm-out partner to fund a future exploration well, will also benefit from the funding.
88 Energy says it successfully completed a bookbuild to domestic and international institutional and sophisticated investors to raise A$9.9 million before costs.
88 Energy managing director and CEO Ashley Gilbert expressed enthusiasm about initial exploration activities at PEL 93.
“The Owambo Basin offers substantial hydrocarbon exploration potential across a highly prospective and underexplored region,” Gilbert says.
