- 88 Energy (88E) raises $17.5 million through an oversubscribed share placement to support drilling and exploration work in Alaska
- The company will issue over 1.8 billion new shares at just under a cent a share to raise the funds — a 20.8 per cent discount to its last closing price on February 1
- The boost will bolster efforts at 88E’s planned Hickory-1 well within its Project Phoenix area, pay for the new acreage at Project Leonis, and finance potential portfolio expansion or new ventures
- 88E says it now has sufficient cash to fund its ongoing working capital requirements and general and administrative overheads for at least 12 months
- Shares in 88E are up 4.17 per cent and trading at 1.3 cents at 3:27 pm AEDT
88 Energy (88E) has raised $17.5 million in an oversubscribed placement to domestic and international institutional and sophisticated investors.
The company will issue over 1.8 billion new shares at just under 0.95 cents a share to raise the funds, marking a 20.8 per cent discount to its last closing price of 1.2 cents on February 1.
The funds will go towards work at the planned Hickory-1 well at 88E’s Project Phoenix in Alaska, paying for the acreage at Project Leonis, financing portfolio expansion or any new ventures, and providing additional working capital.
88E confirmed the net proceeds of the placement, together with the company’s existing cash reserves, left the company with “sufficient cash” to fund its ongoing efforts.
“Completion of this placement ensures 88 Energy is fully funded for the drilling cost of the Hickory-1 exploration well and, upon success, a flow test to be carried out during the 2023/24 winter operational season in Alaska,” 88E Energy Managing Director Ashley Gilbert said.
“Funds will also be directed toward the initial acreage payment and further assessment of Project Leonis.”
Mr Gilbert also said the company would continue to pursue new ventures, targeting opportunities across the asset life cycle that were complementary to its existing portfolio and could provide shareholders with exposure to further value creation potential.
In the meantime, 88 Energy turns its focus to the Hickory-1 well, with the company expecting to commence spudding in early March 2023.
Shares in 88E were up 4.17 per cent and trading at 1.3 cents at 3:27 pm AEDT.