88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) today announced an equity raise of up to A$9.8 million with the proceeds earmarked to fund the continuing development of its key projects.
The placing, managed by brokers Cavendish and EurozHartleys, is priced at 0.3 Australian cents per share. The company can issue up to 3.29 billion new shares – for an equivalent value of A$9.8 million or £5.23 million.
It comes after successful well testing results for the Hickory discovery.
88 Energy said the net proceeds will strengthen its balance sheet and provide sufficient capital to fund the next phase of work in Alaska – mostly desktop analysis work to advance the project –as it prepares for farm-out processes for both the Phoenix and Leonis project areas.
Meanwhile, the money will also support the completion of a 2D seismic programme in the Owambo basin, Namibia.
It expects that the seismic program will be conducted in mid-2024 following a period of planning, public consultation, updating of environmental compliance requirements and relevant approvals. The findings will be used to identify possible exploration drilling locations.
The company said it will have sufficient cash to fund its ongoing working capital requirements and general and administrative overheads for at least 12 months.