88 Energy to raise funds via placing, shares dip By Investing.com

By Samuel Indyk

Investing.com – 88 Energy (LON:88E) shares were trading lower on Tuesday after the company proposed to raise AUD 20 million (£10.6 million) via a placing of new ordinary shares of no par value at a price per placing share of AUD 0.028 (equivalent to 1.49 pence).

The placing price is equivalent to a discount of 12.5% to the closing price of the company’s shares on the Australian Securities Exchange.

The placing comes ahead of the planned appraisal of the Merlin-2 well, which is scheduled for drilling during the Alaskan winter drilling window in Q1 2022.

88 Energy said the net proceeds of the placing, alongside existing cash reserves, will strengthen the balance sheet and provide the company with sufficient capital to finance the drilling and logging of the Merlin-2 appraisal well, fund lease acreage payments, and enable identification and execution of potential new project opportunities.

The company expects to have sufficient cash for operations for the next 12 months.

Current Activities

Alongside the equity offering announcement, the oil & gas exploration company provided an update on current trading and activities undertaken throughout the year.

The group said it is undertaking a re-assessment of its Project Icewine acreage following encouraging drilling results from Pantheon Resources’ (LON:PANR) neighbouring Talitha-1 well.

The company is also planning for potential future exploration drilling on its Yukon acreage, which would be subject to farm-out and other considerations, such as the ongoing discussions with nearby lease owners for a joint development area.

At 11:16BST shares in 88 Energy were trading lower by 3.3% at 1.62 pence per share.