Proactive Investors - Run By Investors For Investors

88 Energy Ltd launches £5.9mln share placing to fund Alaska exploration

Cash from the fundraising is earmarked for 88 Energy’s share of drilling costs for the Winx-1 well, along with other exploration and corporate expenses
oil and gas operations
The Winx-1 well is due to be drilled in Q1 2019

88 Energy Ltd (LON:88E, ASX:88E) revealed it aims to raise £5.9mln of new capital through a share placing, as it continues to countdown to new conventional oil exploration activities in Alaska.

The placing follows on from a right issue which raised £2.02mln, of a possible £7.96mln, and, will see the remainder of the new shares (around 593mln of them) sold to investors at a price of 1p each.

READ: 88 Energy encouraged as it advances conventional exploration assets

It is being conducted by a bookbuild process run by broker Cenkos in the UK and Hartleys Limited in Australia.

Cash from the fundraising is earmarked for 88 Energy’s share of drilling costs for the Winx-1 well, ongoing lease rent payments, continuing geologic evaluation, debt interest payments and ongoing working capital.

“The net proceeds of the placing are intended to be used, together with the company's existing cash reserves, to fund the company's ongoing evaluation of the conventional and unconventional prospectivity of existing assets,” 88 Energy said in a statement.

The Winx-1 exploration well, which will target a 400mln barrel prospect, is due to be drilled in the first quarter of 2019.

View full 88E profile View Profile

88 Energy Ltd Timeline

Related Articles

falcon oil
November 23 2018
Falcon Oil & Gas narrowed its first-half loss as it continued to focus on tight cost control
Touchstone
January 17 2019
An independent evaluation confirming the potential of the Ortoire block is a “significant milestone”, according to analysts at SP Angel
Ukraine oil well
February 01 2019
In Ukraine, the Group’s assets are located near to Poland and Romania

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use