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Red Emperor shares rise on ‘oversubscribed’ placing ahead of Alaska well

The cash injection will support working capital and provide contingency ahead of exploration drilling in February
oil and gas operations
Red Emperor shares rose more than 5%

Investors in Red Emperor Resources (LON:RMP) are evidently feeling upbeat about the firm’s exploration partnership in Alaska with 88 Energy Ltd (LON:88E).

Red Emperor on Tuesday announced it had raised £2.8mln of new funds through an oversubscribed share placing.

The explorer’s shares advanced around 5.7% to change hands at 3.3p.

It comes just one day after Red Emperor and 88 Energy confirmed it was on track to start drilling operations for the Winx-1 exploration well by mid-February.

READ: 88 Energy counting down to Winx-1 spud in mid-February

The cash injection will support working capital and provide contingency as it prepares for the upcoming Winx-1 drilling.

Red Emperor has a 31.5% interest in the Alaska project, where Winx-1 will test a 400mln barrel target.

88 Energy, which owns 40%, yesterday revealed construction work is presently underway for the 11-mile ice road to access the Winx-1 site. It will take around three weeks to complete and the well pad will be completed thereafter.

Red Emperor chief executive Gracjan Lambert, in a statement on Monday, said: "It is very exciting to reach this significant operational milestone with the commencement of ice road construction.

“We are on schedule and fast approaching what will be a very exciting and potentially company transforming well."

In Tuesday’s statement, Red Emperor reported that some 100mln new shares are being purchased at an issue price of 2.8p. The placing shares equate to 19.04% of the company’s enlarged share capital.

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