88 Energy Ltd (EEENF)

[sharky]

88 Energy says placing was oversubscribed, reveals move for Permian basin assets:

88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors its share placing was oversubscribed and increased, to raise A$32mln before costs.

Proceeds will be used, alongside existing cash resources, to fund the planned Merlin-2 well including drilling, testing and contingencies.

"Completion of this placement ensures 88 Energy is funded to undertake the full suite of targeted appraisal activities at the Merlin-2 well,” said managing director Ashley Gilbert.

“While budgeted well costs have increased due to global supply chain pressures, it is important to note that 88 Energy is still expected to drill and appraise Merlin-2 at substantially lower cost levels relative to other operators on the Alaskan North Slope."

Merlin-2 is scheduled to spud in early March 2022.

Gilbert, meanwhile, added: "88 Energy has also been actively assessing multiple new venture opportunities across the asset life cycle to expand our portfolio of assets and opportunity types. We are targeting assets that are complementary to the existing portfolio and provide shareholders with exposure to additional value creation potential.”

The 88 Energy boss told investors that the company recently signed a non-binding memorandum of understanding to acquire a conventional producing oil and gas asset in the Permian Basin Texas USA, and due diligence and documentation is nearing completion.

The opportunity could deliver immediate cash flow and near-term production drilling upside, subject to binding agreement.

“We look forward to providing shareholders more details when such agreement is entered," Gilbert commented.


https://www.proactiveinvestors.com/companies/news/973966/88-energy-says-placing-was-oversubscribed-reveals-move-for-permian-basin-assets-973966.html



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