30th Apr 2018 12:30
LONDON (Alliance News) - 88 Energy Ltd on Monday announced an equity fundraise, as it progressed on Icewine project in Alaska and Yukon gold project in Canada.
The oil & gas explorer intends to raise AUD12.0 million, or GBP6.59 million, with the ability to take over-subscriptions of up to AUD5.0 million, pursuant to a conditional placing of new shares at a price of AUD0.037 each.
The placing price is equivalent to a discount of 11% to the average share price on the Australian Securities Exchange for the 30 days to April 27. In London, the stock was trading 18% lower at 2.22 pence per share on Monday.
Placing proceeds will be used to fund the company's ongoing evaluation of the conventional and unconventional prospectivity of existing assets and to enable it to identify and exploit new opportunities on the North Slope of Alaska. It will also be used to strengthen the company's balance sheet.
The placing will be conducted via bookbuilding process, the company said, managed by Cenkos Securities PLC in the UK and Hartleys Ltd in Australia.
Separately, 88 Energy said that exploration and evaluation expenditure totalled AUD7.2 million for the three months to the end of March, mainly relating to the Icewine 3D seismic acquisition and the Yukon Gold 3D lease rental payments.
The company said that it completed 3D seismic survey at the end of March and started shipments of data. It anticipates early products to be available in June, which will enable 88 Energy to start mapping.
The company also said that it is progressing on in-house evaluation of Yukon Gold leases, which contains oil discovery. In March, it awarded a seismic contract to SAExploration to acquire about 96 square kilometres over Yukon Gold leases, which was completed by the end of the quarter.
The seismic data will allow for assessment of the volumetric potential of the discovery, the company said, and it plans to receive final processed products in the fourth quarter.
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