88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it has successfully completed the bookbuild for its placing, raising £5.23 million (A$9.9 million) of new equity.
The junior oil and gas company, in a statement, said it will issue 3.29 billion new shares priced at A$0.003 each.
Proceeds from the placing, plus its existing cash resources of $17.5 million, mean that the company is now funded for at least the next 12 months.
It supports plans to advance the company’s assets in Alaska, where a recent successful well test revealed significant potential in the Phoenix project area, and its recently acquired project in Namibia.
"We are now funded to proceed with the development and monetisation plans for Project Phoenix,” chief executive Ashley Gilbert said.
“The next steps include post-well flow test studies, securing additional contingent resources at SMD and SFS to complement the BFF contingent resource, and exploring a farm-out of Project Phoenix to engage a strategic partner for the next phase of development and commercialisation.
“The successful Hickory-1 flow test creates multiple paths for 88 Energy and its Joint Venture partner to commercialise and realise value from Project Phoenix.”
Gilbert added: “At the same time, we are also enthusiastic about our initial exploration activities on the Namibian farm-in acreage at PEL 93. The Owambo Basin offers substantial hydrocarbon exploration potential across a highly prospective and underexplored region."