Join our daily newsletter At The Bell to receive exclusive market insights
- 88 Energy (88E) has entered a trading halt regarding an upcoming capital raise
- The company will remain in the halt until November 19 or when an announcement is released, whichever occurs first
- In mid-November, 88E provided an update regarding Project Icewine in Alaska
- An independent resources estimate from ERCE Equipoise forecast large prospective resources totalling roughly 1.77 billion barrels of oil equivalent
- Taking a look at its financials, 88 Energy burnt through more than $1.13 million in the September quarter, with the majority going toward interest and finance payments
- As of September 30, the company had more than $4.6 million in the bank
- Coupled with its September quarter outflows, it means the business only has enough capital to support operations for two more quarters
- Company shares last traded for 0.8 cents on November 13
88 Energy (88E) has entered a trading halt regarding an upcoming capital raise.
The company will remain in the halt until November 19 or when an announcement is released, whichever occurs first.
On November 11, 88 Energy provided an update regarding Project Icewine on Alaska’s North Slope.
An independent resources estimate from ERCE Equipoise forecast large prospective resources totalling roughly 1.77 billion barrels of oil equivalent.
It is believed that the majority of the resource is in the Seabee formation — a large stratigraphic build-up over multiple sand bodies.
Given the significant size of this estimate, 88 Energy believes it will be able to attract a partner to fund drilling to evaluate the flow potential.
Further, 88 Energy is on the cusp of drilling at another similar-sized opportunity at Project Peregrine.
Taking a look at its financials, 88 Energy burnt through more than $1.13 million in the September quarter, with the majority of capital going toward interest and finance payments, as well as administration and corporate costs.
As of September 30, the company had more than $4.6 million in the bank. Coupled with its cash outflows, 88E has enough capital to support operations for two more quarters if spending levels remain the same.
At this point, 88 Energy is yet to disclose how much it is raising or what it will use the funds for.
Company shares last traded for 0.8 cents on November 13.
