Ann: Oversubscribed Placement to Raise A$17m, page-3

www. 88energy.com
Level 2, 5 OrdStreet, West Perth WA 6005 PO Box 1674, West Perth WA 6872 Australia Phone +61 8 9485 0990
ABN 80 072 964 179
2nd May 2018
88 Energy Limited
Oversubscribed Placement to Raise $17 million
88 Energy Limited ("88 Energy" or the “Company", ASX:88E, AIM 88E) is pleased to advise that it has successfully completed a bookbuild to domestic and international institutional and sophisticated investors to raise up to A$17 million (the "Placement") through the issue of up to 460 million ordinary shares (the “New Ordinary Shares”) at A$0.037 (equivalent to £0.02) per New Ordinary Share (the “Placement Price”). The Placement was significantly oversubscribed.
Funds raised pursuant to the Placement will be used to fund the Company’s ongoing evaluation of the conventional and unconventional prospectivity of existing assets and to enable it to identify and exploit new opportunities on the North Slope of Alaska. As at 31 March 2018, the Company had cash resources of US$10.5 million, against a planned work programme of US$6.5 million for costs associated with recommencement of flow testing at Icewine #2 (May/June 2018) and final payments relates to the acquisition of the Icewine 3D and Yukon Gold 3D seismic surveys.
The proceeds of the Placement will be used to strengthen the Company’s balance sheet and to provide the Company with sufficient capital to:
• process and interpret ~450km2 of 3D seismic data acquired over the Project Icewine acreage in March 2018, the final results of which are expected to be available in Q4 CY2018 and are designed to build on the highly encouraging results of the 2D seismic interpretation and allow the Company to firm up locations for further drilling activity in H1 CY2019;
• process and interpret 3D seismic data which was opportunistically acquired over the Company’s recently-purchased Yukon Gold acreage, an existing oil discovery on the North Slope of Alaska close to infrastructure, the results of which are expected to be available in Q4 CY2018;
• settle expected CY2018 lease payments due on its acreage, totalling approximately A$5 million;
• fund interest payments on the Company’s debt facility which, as announced on 26 March 2018, was recently refinanced with Bank of America and subsequently assigned to FCS Advisors, LLC (trading as Brevet Capital Advisors); and
• finance the Company’s ongoing working capital requirements and provide capital for any additional growth initiatives
Commenting on the success of the Placement, Dave Wall, Managing Director of 88 Energy, stated:
"Post the recent opportunistic acquisition of 3D seismic at the Yukon Gold leases, the Board deemed it prudent to strengthen the balance sheet ahead of what promises to be an extremely active time for the Company. In particular, we are looking forward to the re-commencement of production testing at the Icewine#2 well in the coming weeks.
Results from the 3D seismic surveys at Project Icewine and the Yukon Gold Project are expected from mid 2018 and the Company remains confident of a farm-out related to the conventional potential at Project Icewine prior to year-end 2018.
We would like to thank our advisers and shareholders for their continued support as we enter into this critical phase of the project.”