- 88 Energy has completed a bookbuild to domestic and international investors to raise up to $6.75 million
- A total of 540 million shares will be issued at a price of $0.0125 (£0.007)
- Funds raised will be used for the ongoing evaluation and potential costs at the Charlie-1 well
88 Energy has successfully completed a bookbuild to domestic and international and sophisticated investors to raise up to $6.75 million.
The placement will issue up to 540 million ordinaries paid shares at a price of $0.0125 (£0.007) apiece. The settlement is scheduled from September 20, 2019.
The issue of these shares is not subject to shareholder approval as the issuing falls within 88 Energy’s listing and compliance rules.
Following the issue of these shares, 88 Energy will have 6,871,540,324 ordinary shares in issue.
The money raised, along with existing cash reserves of $6.5 million, will be used to fund the ongoing evaluation of the conventional and unconventional prospectivity of its existing assets.
It includes any potential costs regarding the Charlie-1 well which is due to be drilled in Q1 of 2020 and also enables 88 Energy to identify and exploit new opportunities on the North Slope of Alaska.
“Completion of this placement positions the company strongly as preparations continue for the drilling of the Charlie-1 well, which will test multiple stacked conventional targets,” Managing Director Dave Wall said.
“Drilling the Charlie-1 well will be a pivotal moment for the company as it seeks to unlock the large potential of the conventional plays on the acreage.”
Hartleys Limited acted as sole lead manager and sole bookrunner to the placement in Australia while Cenkos Securities acted as its nominated adviser and sole broker to the placement in the U.K.
Shares in 88 Energy are down 7.14 per cent and trading for 1.3 cents apiece at 1:17 pm AEST. Its market cap is valued at $88.64 million.