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2.23
All will depend on the next news and the determination of Conoco for a swift conclusion.
I am just plundering along with the volatility. The late PB introduced investors whose options are due to expire on or before end of this October. Will their price close to .055c be hit, if so that is $8,5m to be added to the pot if they do convert. Will over $20m in the bank be enough to deliver the next phase?
20:46 mikemike good to see you still here, great news on tax credits and as you say the other deadline gets closer every day.
October will also see a balance sheet shuffle to the positive with the contingency not claimed by Galp being removed......................unless there is a last second invoice due at the end of year 5 claim period from a Galp department that no longer exists...just for ''balance''
Debts cleared, reducing any late payment fees etc, and a bit of money in the bank... I thought that was good?
23:46
88E debt free. Good news for a buyout.
An accountant at work me thinks!
And what's it worth to them in 2026 ?
They probably don’t mind waiting until 2026
The bigger question is why would this larger company take this on?
Hopefully Australia likes it too and can get the ball rolling :-)
That's great news. SOA reneging on credit payments and therefore that debt has been a ball and chain on 88e for years.
Highlights
• Agreement to sell 88 Energy’s Alaskan Oil and Gas Tax Credits for US$18.7 million
• Proceeds to be applied towards full repayment of 88 Energy’s outstanding debt of US$16.1 million
• 88 Energy to be debt free with its cash holdings increased by the residual US$2.6 million
88 Energy Limited ("88 Energy" or the “Company", ASX:88E, AIM:88E, OTC:EEENF) is pleased to
advise shareholders that it has entered into an agreement that will facilitate the sale of all the Alaskan
Oil and Gas Tax Credits (“Tax Credits”) currently held by Accumulate Energy Alaska, Inc.
(“Accumulate”), a 100% owned subsidiary of 88 Energy.
The sale price of the Tax Credits is US$18.7 million cash, payable upon completion of the sale and
transfer of the outstanding tax certificates. Transfer of the certificates and payment of the proceeds
is anticipated to occur within the next few weeks, subject to Alaskan Department of Revenue approvals
and processes. The purchaser is a large oil and gas company in the United States with multiple
exploration and production assets and has capacity to fund transactions of this nature.
The transaction accelerates the timeframe of 88 Energy’s value realisation from the Tax Credits, which
under current estimates would not have been fully paid out by the State of Alaska until 2026.
The majority of the proceeds from the sale are to be applied towards full repayment of 88 Energy’s
current outstanding debt of US$16.1 million with FCS Advisors, LLC (d/b/a Brevet Capital Advisors)
(“FCS”), which was due to mature on 30 December 2022. Early repayment penalties have been
waived by FCS.
The residual sale consideration of US$2.6 million is to be receipted by 88 Energy, which will be applied
towards the Company’s working capital requirements. The early repayment of debt also saves on
future cash payments that would have been made towards interest on outstanding debt.
The overall impact of this transaction is not considered material to 88 Energy as the Tax Credits
applied to be cashed out and approved by the Alaskan Government totalled US$19.1 million
(compared to the proceeds received from sale of tax credits of US$18.7 million).
Managing Director, Ashley Gilbert, commented: “This is a transaction which accelerates the realisation
of value of the Alaskan Oil and Gas Tax Credits and the early repayment of outstanding debt due to
be repaid by the end of 2022. As a result of the transaction, the Company is now set to be debt free
with reduced annual overheads of over US$1 million in associated finance costs.”
https://www2.asx.com.au/markets/company/88e
Sale of Tax Credits and Full Repayment of Debt