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  • Writer's pictureMark Watson-Mitchell

88 Energy – following £1.7m rights issue group now raises £4.5m for Hickory-1 well flow testing

88 Energy – following the £1.7m rights issue group now raises additional £4.5m for Hickory-1 well flow testing and extra working capital


The multi-listed 88 Energy (LON:88E) oil and gas exploration and production company with a North American focus has today announced the Placing of £4.5m of new shares at 0.31p per share to fund the flow testing of its Hickory-1 well located in Project Phoenix.


88E has operator exploration interests in onshore Alaska and non-operator production interests in onshore Texas.


The company has been operating on the North Slope of Alaska since 2015, successfully drilling multiple exploration wells and acquiring extensive seismic data across a large acreage position.


The Placing follows on from the £1.7m Rights Issue announced in late July and completed last week.


The fresh funds will be used to strengthen the company's balance sheet and provide the company with further capital to fund 88 Energy’s share of the Hickory-1 well flow test at Project Phoenix, also for permitting and planning for a potential new well at Project Leonis, and for development wells for Project Longhorn production growth.


The Hickory-1 well is currently cased and suspended ahead of the upcoming flow test program which is scheduled to commence as early as possible in the 2023/24 winter operational season.


The flow test and well stimulation program is being developed in consultation with flow test design experts who are utilising available regional information in combination with a detailed evaluation of the drilling and wireline logging data from Hickory-1.


The company has recently published an updated Project Peregrine Prospective Resource Assessment, incorporating the Merlin-2 appraisal well results and assessed two new reservoir targets that have been identified by the company following an assessment of the remaining prospectivity of the Project Peregrine acreage.


Reservoir quality for the remaining Project Peregrine portfolio is expected to materially improve in the northern areas of the Peregrine acreage.


The company has stated that the proceeds of the Placing are designed to allow existing shareholders exposure to potentially transformational activity over the next 9 months.


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