88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has announced the successful close of it’s A$9.9 million equity raise, which it described as oversubscribed.
Domestic and international institutional and sophisticated investors bought new shares priced at 0.45 cents per share (equivalent to 0.23p) in the placing, it said.
It told investors today that the company is now fully funded for the upcoming Hickory-1 flow test program, including contingencies to cover financial exposure relating to the financial position of the Project Phoenix Joint Venture partner.
Proceeds will also be used for initial exploration activities in Namibia, it added.
Results from the Hickory project are anticipated later in the fourth quarter.
“We are now fully funded to undertake Hickory-1 flow test operations during the upcoming winter operational season in Alaska,” managing director Ashley Gilbert said in a statement.
“Burgundy's [88 Energy’s joint venture partner] failure to rectify its payment default to date is disappointing and has necessitated the raising of additional funds.
“However, if not cured their default will enable us to exercise remedies under the JOA which may include the potential for 88 Energy to move to a 100% working interest in some or all of the leases within Projects Phoenix and Icewine West covered under the default.”
Gilbert added: “We are also excited about commencing initial exploration activity on our Namibian farm-in acreage.
“The Owambo Basin delivers large-scale hydrocarbon exploration potential across a highly prospective and underexplored acreage position."