88 Energy announces $5 million placing
, announced on Friday a placing of A$5 million to fund its ongoing evaluation of assets, as well as any potential costs for the Charlie-1 well, scheduled to spud in February 2020.
Commenting on the Placement, Dave Wall, Managing Director of 88 Energy, said: "The decision by the Board to raise additional funds at this time was for several reasons, namely: unsolicited demand for investment at a premium to the most recent placement in September 2019; and a subsequent incremental increase in the well cost due to high grading of the quality of the evaluation program.”
Hartleys Limited acted as Sole Lead Manager and Sole Bookrunner to the Placement.
Mr. Wall added: “We would like to thank our advisers and shareholders for their continued support as we enter into this critical phase."
The placing will see the issue of 238,095,238 shares at A$0.021 (equivalent to 1.1p).
Shares in 88 Energy ticked up 2% to 1.275p during Friday morning trading
88 Energy told investors that the placing provides it with the capital needed to fund lease rental payments on its Alaskan acreage, fund interest payments on its debt facility, and fund new venture opportunities.
The company also said, together with its $15.9 million (as of 31 December 2019) cash reserves, the placing would fund any potential costs of the Charlie-1 appraisal planned for February, well above the farm-out cap of US$23 million.
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