(Alliance News) - 88 Energy Ltd is raising AUD5 million to fund work in Alaska, the Australian firm said on Friday.
The oil & gas firm had said on Wednesday it was planning a capital raise.
88 is placing 238.1 million new shares in the company at a price of AUD0.021 each, raising the AUD5.0 million, or about GBP2.6 million.
88 shares were 3.6% higher on Friday morning at 1.30 pence, but did slip on Wednesday. In Sydney, they closed 7.7% lower at AUD0.024, having been suspended there between Wednesday and when the placing announcement was made in Sydney.
The money will be used to fund ongoing work on assets in Alaska. 88 has a 60% stake in the Icewine project on the North Slope, as well as interests on Alaska's Western Blocks and Yukon Gold. Work currently ongoing includes the upcoming Charlie-1 appraisal well.
88 will also use the funding to pay lease rental payments, pay off interest on debt, and fund new ventures.
Managing Director Dave Wall 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.
"We would like to thank our advisers and shareholders for their continued support as we enter into this critical phase."
The firm raised GBP3.8 million last September, placing shares at the same price as the current placing.
By George Collard; georgecollard@alliancenews.com
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88 Energy (88E)