(Alliance News) - 88 Energy Ltd on Tuesday said it completed its latest rights issue and proposed a placing of over one billion shares to fund its exploration activity.
88 Energy's stock was down 4.6% at 0.31 pence in London on Tuesday morning.
The Subiaco, Western Australia-based and North America-focused oil and gas company, which has onshore operations in Alaska and Texas, said the non-renounceable rights issue closed last Tuesday, having raised AUD3.3 million or approximately GBP1.7 million.
The rights issue, announced on July 31, consisted of one fully paid share for every ten existing shares held, at 0.6 Australian cents or 0.31 pence each. 88 said it will subsequently issue 553.1 million new shares to eligible shareholders. The bookbuilding process is being managed by Cenkos Securities PLC in the UK and Euroz Hartleys Ltd in Australia.
Also on Tuesday, 88 proposed the launch of a conditional share placing, comprising up to 1.46 billion shares at 0.31p each, to raise up to GBP4.5 million. The placing will be carried out within 88's existing placement capacity and will not require shareholder approval.
Finally, 88 Energy said its shares have been placed in a trading half on the Australian Securities Exchange, pending completion of the placing and 88's official announcement of said completion.
88 said the rights issue and placing proceeds, alongside its existing cash reserves, will be used to fund ongoing activity across its exploration assets portfolio. Planned activities include flow testing of the Hickory-1 well in Project Phoenix on Alaska's Central North Slope; permits and planning for a possible new well at Project Leonis on the North Slope; and development wells to further production growth at Project Longhorn in Texas.
By Emma Curzon, Alliance News reporter
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88 Energy (88E)