RE: Rns out9 Nov 2018 11:24
RNS Number : 9261G
88 Energy Limited
09 November 2018
9 November 2018
88 Energy Limited
Result of Placing
88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM 88E) is pleased to advise that further to the announcement by the Company on 8 November 2018, it has successfully completed a bookbuild to domestic and international institutional and sophisticated investors to raise approximately £5.56 million (equivalent to A$10.0 million), before expenses (the "Placing") through the issue of 555,555,600 ordinary shares (the "New Ordinary Shares") at £0.01 (equivalent to A$0.018) per New Ordinary Share (the "Placing Price"). The Placing follows the closure of the non-renounceable rights issue (for AIM purposes, the 'open offer') announced by the Company on 3 October 2018 ("Rights Issue").
As at 30 September 2018, the Company had cash resources of A$8.1 million (prior to the receipt of gross proceeds of A$3.6 million pursuant to the Rights Issue). Funds raised pursuant to the Placing will be used with existing cash reserves to fund the Company's ongoing evaluation of the conventional and unconventional prospectivity of existing assets, including drilling of Winx-1 in Q1 2019, and to enable it to identify and exploit new opportunities on the North Slope of Alaska.
Specifically, the net proceeds will be applied towards:
· Drilling and/or production testing, if appropriate, at the upcoming (Q1 2019) Winx-1 exploration well;
· Ongoing lease rental payments to maintain the current lease portfolio in good standing;
· Continued evaluation of geological potential across the asset portfolio;
· Fund interest payments on the Company's debt facility; and
· Finance the Company's ongoing working capital requirements and provide capital for any additional growth initiatives.
Commenting on the success of the Placing, Dave Wall, Managing Director of 88 Energy, stated:
"We would like to thank our advisers and shareholders for their continued support as we enter a potentially transformational period for the Company, which includes a possible farm-out by year-end followed by the spud of the Winx-1 exploration well in the first quarter of 2019."