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88 Energy secures “a level of certainty” that listed options will deliver A$6.75mln of new funds

“This funding along with the existing strong cash position ensures the company is well funded for the next important programmes of work,” said managing director Dave Wall
oil and gas operations
The funding will support the 2018 work programmes in Alaska

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).

READ: 88 Energy looks forward to restarting activity in Alaska

“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.

READ: 88 Energy highlights “significant pressure build-up” in Icewine well

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."

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