(Alliance News) - 88 Energy Ltd is planning a capital raise, it said on Wednesday, meaning shares have been suspended in Sydney.
However, the oil and gas firm said trading on London's AIM remains unaffected. Trading in Sydney will remain halted until the earlier on a placing announcement or the start of trading on Friday.
Shares were 11% lower on Wednesday in London at a price of 1.22 pence each.
"It is currently intended any such capital raising will utilise the company's existing authorities and will not be subject to shareholder approval. The company confirms no terms for any such capital raising have been agreed, and there can be no guarantee a capital raising will be completed," said 88 Energy.
When reporting first-half results for 2019 in September, 88 Energy reported cash on hand of AUD6.7 million, or GBP3.5 million, down from AUD21.7 million in January.
88 Energy has assets in Alaska, including the Icewine project on the region's North Slope. On Monday, it said it expects to receive drilling permits for the Charlie-1 well at Icewine by the end of January.
By George Collard; georgecollard@alliancenews.com
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88 Energy (88E)