News: 88E 88 Energy Says Applications For New Shares Raises $3.6 Million In Rights Issue, page-30

I am not sure that the limited take up of the Rights Entitlement is necessarily a vote of no confidence or lack of trust in the BoD. There are many investors, I’m sure, who take a broad portfolio view of their investments and 88E is but 1 part of that portfolio, The interests of prudence and portfolio balance may have prevented these investors from tipping more in. Of course, other valid reasons abound too. Such as macro concerns, or near term unavailability of funds, or concerns that the lead time between the RI and SP raising news flow may tie up funds that could be temporarily utilized elsewhere.

I know that most of these were factors in my decision not to take up my entitlement, and ths was in the face of my considerable conviction in the venture and continued support, on balance, of its leadership. DW’s clear assertion in a recent podcast, that there was considerable interest from instos etc, gave me confidence that a likely shortfall would be readily filled by a placement, when required. We will now see if that interpretation was correct.

Gut instinct tells me that the near term market price may suffer if the shortfall is not filled sooner rather than later. Though clearly, any other material news prior to that (eg farmout) may negate any jitters.

All IMO & GLTA.