12th Sep 2019 14:13
(Alliance News) - 88 Energy Ltd on Thursday said it has raised AUD6.8 million, roughly GBP3.8 million, through a share placing with funds going towards further development of the company's assets.
The company placed the shares at a price of AUD0.0125, equivalent to 0.007 pence, a 20% discount to the firm's 30-day volume weighted average price in Sydney up to Tuesday.
Shares in the company were 5.2% lower at 0.66 pence each in London on Thursday afternoon.
The company said the proceeds of the placing, and its existing cash resources of AUD6.5 million at June 30, will be used to fund evaluation work at some of the company's existing assets.
88 Energy has interests in Alaska, at the Icewine project, as well as some Yukon Gold leases, which holds a prospective resource of 89.6 million barrels of oil.
"Completion of this placement positions the company strongly as preparations continue for the drilling of the Charlie-1 well, which will test multiple stacked conventional targets, as well as the HRZ shale, in the first quarter of calendar year 2020. Charlie-1 will be funded up to USD23 million by Premier Oil PLC, a highly credential partner that has recently farmed in.
"Drilling the Charlie-1 well will be a pivotal moment for the company as it seeks to unlock the large potential of the conventional plays on the acreage. We would like to thank our advisers and shareholders for their continued support as we enter into this critical phase."
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88 Energy