PERTH (miningweekly.com) – Alaska-focused oil explorer 88 Energy has completed the bookbuild for a A$17.5-million capital raise to fund drilling of the Hickory-1 well at Project Phoenix, and to fund payment for acreage at the Leonis project.
The ASX- and Aim-listed company on Monday said it would issue more than 1.8-billion shares at a price of 0.95c each, representing a 20.8% discount to the company’s last closing price on February 1, and 20.2% discount to its ten-day volume weighted average share price.
The shares will be issued under 88 Energy’s existing placement capacity, and will not require shareholder approval.
“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,” said MD Ashley Gilbert.
“Funds will also be directed towards the initial acreage payment and further assessment of project Leonis. We also continue to pursue additional new ventures, targeting opportunities across the asset life cycle that are complementary to our existing portfolio and provide shareholders with exposure to further value creation potential.”