88 Energy Ltd (LON:88E) has secured “a level of certainty” that it will receive A$6.75mln of additional capital funding in March, after entering into an underwriting agreement related to listed share options.
There are around 340mln listed options which are exercisable at 2 Australian cents before a deadline of March 2 (current ASX price: 2.9 Australian cents).
“The underwriting gives 88 Energy a level of certainty that the 88E options that haven't already been exercised will result in funding of A$6.75mln,” the exploration company said in a statement.
“This funding along with the existing strong cash position ensures the company is well funded for the next important programmes of work.”
88 Energy’s forward work programme includes the restart of testing operations in the Icewine-2 shale well and the shooting of new 3D seismic across the broader North Slope exploration areas in Alaska.
Dave Wall, 88 Energy managing director, in a statement, said: “The recent financial commitment by the board in respect of its options and the oversubscribed underwriting are a testament to the confidence of management and investors in the future of the Company.
“With significant near and medium term activity, 88 Energy is well placed to continue to create wealth for its shareholders."